Profitability of Small and Medium Enterprises in Albania (Focusing in the City of Tirana)

In the face of economic and social conditions that Albania confronts nowadays, the development of the small business enterprises has a primary place as well as an important role, too.The business and enterprises literature shows that there are many factors determining the success and the growth of an enterprise. The profit is one of the most important factors for an enterprise to survive in a competitiveenvironment. Consequently, it is an important indicator of SMEs’ performance.The profitability refers to the possibility of an enterprise to be financially successful. This can be assessed prior to entering the business or can be used to analyse an enterprise that currently is under operation.In this paper, profitability of SMEs is being measured through linear regression model. The data are collected through direct interviewsto businesses and real data are taken from the declaration forms of small business personal income tax payment (DFITP). DOI: 10.5901/jesr.2014.v4n6p54