SMALL AND MEDIUM-SIZE BUSINESSES GROWTH IN ALBANIA ECONOMY

Abstract

Small and medium-sized businesses (SMEs) are very important for job creation and economic growth during times of change and market opening. This is because entrepreneurs have to deal with both good and bad things. This study looks at how political stability affects the growth of small and medium-sized businesses (SMEs) in Albania. It looks at how governance, regulatory frameworks, and institutional quality affect business performance and growth from 2015 to 2025. This study employed a mixed-methods approach, combining surveys of SME owners with secondary data from governmental and international sources, to examine the variables influencing SME growth, such as access to capital, regulatory efficiency, and innovation capacity. The study shows that there are strong links between political stability, institutional support, and the growth of small and medium-sized enterprises (SMEs) when looking at both primary and secondary data. Studies show that stable governance and clear policies make entrepreneurs much more confident and their businesses much more resilient. Progress and new ideas happen more slowly when politics are unstable and structures are weak, for example. The study gives lawmakers, business owners, and other people who want to know how to make the small business ecosystem better useful information. It also gives us a better idea of what it is like to run a small business in Albania.