FISCAL PRESURE ON SME IN ALBANIA AND ITS IMPACT ON ECONOMIC DEVELOPMENT

Abstract

Starting a new business is everyone’s dream. It brings unlimited opportunities and challenges as well, especially in transitional economies. Our country has undergone tremendous changes since the fall of centralized economic system till now. The role of SME in economic development and shortening transitional period is great. SME sector has evolved tremendously but many challenges lay ahead. In our paper we will give a presentation of the role of SME in economic reality in Albania and the region, its trend and challenges. Today SME face many challenges like decrease of demand from market destabilizations, poor infrastructure, poor access to credit, fiscal policy pressure etc….We will emphasize the role of fiscal policy in SME development. The role of fiscal policy should be considered more carefully in today’s global market, in short of perspective development. We believe that fiscal pressure has been a major reason of the set back in SME development. We will analyze Albanian fiscal evolution and its impact in SME development.