Title: Manufacturing firms and entrepreneurial dynamics in less developed economies: Kosovo in comparative perspective

Authors: Fadil Sahiti

Addresses: RIT Kosovo (A.U.K.), Rochester Institute of Technology – RIT Global Campus, Dr. Shpetim Robaj, n.n., Germia Campus, Prishtina 10000, Kosovo

Abstract: This paper examines patterns of dynamics of manufacturing firms in Kosovo's economy over the period 2008-2017. The findings for Kosovo are discussed and analysed in the context of comparator countries at different economic levels. The findings show that although the number of incumbent manufacturing firms in Kosovo is almost half less than in comparator countries, there is a vibrant entrepreneurial environment which is supported by young and very small sized firms that are able to survive beyond the age of five. An important pattern that seems to be specific to the country is the rate of exit firms, which is significantly lower than all other reference countries. Although these results support the prevalence of subsistence and necessity-driven entrepreneurship in Kosovo, survival analysis results hint that there may be scope for opportunity-driven entrepreneurship if particularly strong sectors are supported using recent advantages of digitalisation and greening agenda in the economy.

Keywords: creative destruction; firm dynamics; small business; duration analysis; entrepreneurship; hazard function; manufacturing; least developed countries; Kosovo.

DOI: 10.1504/IJTLID.2022.121481

International Journal of Technological Learning, Innovation and Development, 2022 Vol.14 No.1/2, pp.108 - 133

Received: 14 Apr 2021
Accepted: 15 Nov 2021
Published online: 15 Mar 2022 *