The role of microcredit in supporting entrepreneurship in Albania

Alma Delija¹*, Arben Kambo²

¹Agribusiness Department, Faculty of Economics and Agribusiness, Agriculture University of Tirana, Albania
²Departament of Mathematics and Informatics, Faculty of Economics and Agribusiness, Agriculture University of Tirana, Albania

Abstract
Microfinance institutions complement the banking system through the provision of financial products, and the approach of small and medium business, mainly with a focus on the small farmer. The possibility of access to microcredit has brought benefits to the individual and small and medium business, as it is the sector that faces difficulties and financing obstacles.
In this paper we are focused on the individual entrepreneur and the form of organization of their activity in rural and urban areas. Through the implementation of a questionnaire we have analyzed the importance of financing agriculture holdings by Microfinance Institutions in the country, the preparation of documentation procedures required for loans, and the difficulties for financing that they face.
The survey findings showed that enterprises have a good knowledge of lending procedures by IMFs with 22.8 percent. Also, it turned out that a significant percentage is the contribution of loans to the growth of new investments. level of welfare, income of enterprises and the creation of new products and services. Findings return into attention to policymakers on the role of microfinance policy, the development of entrepreneurial challenges and the opportunities and relationships between enterprises and microfinance institutions.

Keywords: Entrepreneurs, Financing, Financial Institutions, Microcredit
JEL Codes: G21