The contribution of SMEs to the economic development and in increasing of the employment rate of the country - the case of Kosovo

The contemporary dynamics of changes in the market, the free market of goods and capital and other concepts of market economy, have made small and medium-sized businesses face the modern challenges of doing business. Increasing demand from consumers for new and cheap products, difficulties arising from economies of scale and costs of operational activities are the factors most pronounced threats to SMEs today. At the same time, this category of enterprises are the largest contributor to the country in increasing the employment rate and contribute significantly to the economic growth of a country. There are different views regarding the contribution of SMBs to a country\u27s economy. One side tries to argue that they are the biggest contributors to reducing unemployment in a country, while other researchers believe that small businesses are irresistible in today’s global economy and free market and go bankrupt more easily and quickly, so it is an overconfidence that the solution to the economic problems and unemployment in a country should be based on the development of SMEs. This situation is especially pronounced in underdeveloped and developing countries. This includes Kosovo with its economic development. This paper tries to measure the impact of SMEs on the economic development of Kosovo through statistical analysis and thus increase the employment rate in the country