European Academic Research ISSN 2286-4822
ISSN-L 2286-4822
Impact Factor: 3.4546 (UIF)
DRJI Value : 5.9 (B+)
Article Details :
Article Name :
The impact of credit guarantee schemes in the financial performance of SMEs in Albania
Author Name :
Besiana Lika, Suela Agaj, Llesh Lleshaj
Publisher :
Bridge Center
Article URL :
Abstract :
This paper aims to examine the impact of the credit guarantee for a group of small and medium enterprises in Albania in the period 2019-2021. The data on SME (small and medium enterprises) beneficiaries has been collected from one credit guarantee scheme that first started its activity in 2015, with the objective to encourage financial institutions to provide financial services to businesses on a sustain basis. The SMEs part of this study have been financed from five different banks and have the highest guaranteed value during 2020. We analyze the financial statements of these SMEs in two situations: before and after receiving the guaranteed loan. By using the multiple regression method, we focus on the net income and several variables that are affected by the loan, such as: the total assets, accounts receivables, working capital and interest expenses and we compare both situations. Our results show that the following year, after the guarantee, the net income of the SMEs is positively correlated with the total assets and working capital, while the accounts receivable and the interest expenses have a negative effect on the net income. Overall, the results suggest that there has been a positive effect of the scheme for guaranteed SMEs. The approach and findings are beneficial to policymakers for the future and pave the way by contributing to the literature for further studies by researchers.
Keywords :
SMEs in Albania, credit guarantee scheme, access to finance
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