Factors Affecting the Performance of Agri Small and Medium Enterprises with Evidence from Kosovo

Abstract The agri SMEs in Kosovo are facing challenges that are reducing competitiveness and preventing it from fulfilling their production potential. The main constraints in increasing productivity and improving competitiveness are the low use of modern techniques and technologies in both production and management of enterprises, lack of funds, the low use of inputs, and the limited ability to meet international standards of food safety. This paper is focused on the analysis of the impact of agricultural SMEs in the rural economy of the country and the problems related to the impact. The data used for this analysis are the data conducted for the Farm Structure Survey (FSS) which includes the farmers’ list from Agricultural Records compiled by the Kosovo Agency of Statistics (KAS) in 2014, as well as the lists of beneficiaries for both direct payments/subsidies and for grants for the period of 2014 to 2017 received by the Agency for Agriculture Development. From the research results, significant factors having an effect on the annual income of agris SMEs are the following: income from the sale of agricultural products, income from subsidies, income from non-agricultural activities, income from salaries, remittances, and income from other activities.