CHALLENGES OF SMALL AND MEDIUM BUSINESSES DURING THE COVID-19 PANDEMIC
CHALLENGES OF SMALL AND MEDIUM BUSINESSES DURING THE COVID-19 PANDEMIC

Summary/Abstract: Since small and medium enterprises (SMEs) have an important role in the overall socio-economic development of a country, besides promoting economic development and poverty alleviation, they also contribute to creating employment opportunities and improving living standards. In Kosovo, the SMEs development can withstand challenges related to economic development, the effects of inequality, the high rate of unemployment, and enhance competitiveness and productivity while boosting revenue growth. In addition to the challenges that SMEs face during their development, the main challenges of SMEs in Kosovo today are the challenges resulting from the COVID-19 pandemic. This study was conducted in 85 SMEs in Kosovo. The surveyed enterprises were from many sectors, including hotel/tourism, clothing, food and beverages, and they have a significant number of employees. The COVID-19 pandemic has caused extensive damage to economies around the world. Restrictions on movement have reduced demand for goods and services, which is the biggest challenge of SMEs. There have also been supply-side shocks due to limited labor supply and difficulties in securing the raw material. This study is an essential step in addressing a serious issue related to the country's economic life's paralysis due to the crisis caused by the Covid-19 pandemic. Although the global economy is in danger, there is hope that this risk can be avoided by the government reacting to ensure monetary welfare for citizens and businesses during the pandemic.

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