The Impact of Microfinance Institutions (MFI) on Small and Medium Enterprises (SME) in Kosovo

Abstract

Small and medium enterprises are the key factors in the economy of a country. Their good development means that there are bigger chances of employment and economic development of a country. In the other side microfinance institutions of- fer services like loan and lecture programs to the individuals and businesses with lower incomes and for those rural. Small and medium enterprises are interconnect- ed with microfinance institutions since the latest provide a great financial help to these businesses, the opportunity to meet their debts and other obligations. We have to consider that the main goal of microfinance institutions is to help small and me- dium businesses.
Then, we have to emphasize that the main goal of this work is:
- The review and presentation of the importance of small and medium enterprises;
- The impact of microfinance institutions on SME’s;
- Reasons and purposes of microfinance institutions help.

Our survey is based on the literature, publications and articles. Also, we are going to do questionnaires for small and medium businesses. In this survey, we are going to use analytical and descriptive methods. As a conclusion, we can conclude that the microfinance institutions have a great impact on small and medium enterprises.

Keywords: Enterprise, Innovation, Microfinance, Institution

JEL Classification: L32, G21,