SMEs as engines of inclusive growth: The Albanian business ecosystem within the Sustainable Development Goals framework

Kekezi, Ana (2025): SMEs as engines of inclusive growth: The Albanian business ecosystem within the Sustainable Development Goals framework. Published in: Economicus No. 2 (1 December 2025): pp. 70-97.

Abstract

This paper explores the interlinkages between the Sustainable Development Goals (SDGs) and small and medium enterprise (SME) development in Albania, assessing how national policies and donor-supported initiatives to the business ecosystem contribute to reducing inequality and fostering inclusive growth. The study adopts a participatory multiple-case design within a mixed-methods framework. It triangulates national and regional policy documents, official SME performance indicators, and longitudinal field evidence collected through more than ten visits, interviews, and direct observations with each of the thirteen SMEs across a six-month period in three neighbouring municipalities of Albania. Results show partial alignment between SDG priorities and SME policies. Firms demonstrate tangible improvements in workplace organisation, innovation capacity, and gender participation, though systemic constraints limited finance, technological adoption, and rural inclusion persist. . The study is based on extensive field engagement, including more than ten visits, interviews, and direct observations for each of the thirteen SMEs over a six-month period, complemented by national policy and statistical analysis. While these longitudinal observations provide rich qualitative depth and triangulated validity, the research does not aim to establish causal relationships or statistical generalisation beyond the observed sample. Strengthening SME access to finance, digitalisation, and capacity development can advance inclusive economic growth. Social implications. Enterprise upgrading contributes to regional cohesion, household income stability, and women’s participation in the labour market. This paper provides field-verified evidence on how Albania’s SMEs operationalise SDG 8 (Decent Work), SDG 9 (Industry and Innovation), and SDG 10 (Reduced Inequalities), offering insight into sustainable industrialisation in a transition economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: SME; Sustainable Development Goals (SDGs); Business ecosystem; Albania; Transition economies
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L26 - Entrepreneurship; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O25 - Industrial Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness

References

AIDA (Albanian Investment Development Agency). (2025). ICT & BPO sector fact sheet 2025. AIDA. Retrieved from https://aida.gov.al

Bank of Albania. (2024). Financial stability report, H1 2024. Bank of Albania. Retrieved from https://www.bankofalbania.org

Bank of Albania. (2025, July). Bank lending survey, Q2 2025. Bank of Albania. Retrieved from https://www.bankofalbania.org

Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and implementation for novice researchers. The Qualitative Report, 13(4), 544–559.

Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-sized enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943. https://doi.org/10.1016/j.jbankfin.2006.05.009

Brammer, S., Branicki, L., & Linnenluecke, M. (2022). The economic impact of small and medium-sized enterprises: Global perspectives on sustainability and growth. Springer Nature. https://doi.org/10.1007/978-3-030-93288-9

Chevalier, J. M., & Buckles, D. J. (2019). Participatory action research: Theory and methods for engaged inquiry. Routledge.

Council of Ministers (Republic of Albania). (2021). Decision No. 466, dated 30 July 2021, on the Business and Investment Development Strategy (BIDS) 2021–2027. Council of Ministers. Retrieved from https://kryeministria.al

Creswell, J. W., & Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3rd ed.). SAGE Publications.

EBRD/EU. (2025, April). Western Balkans SME digitalisation programme announcement. European Bank for Reconstruction and Development; European Union.

European Commission. (2019). Albania 2019 SBA fact sheet. European Commission. Retrieved from https://enlargement.ec.europa.eu/system/files/2019-11/sba-fs-2019_albania.pdf

European Commission. (2021). Albania SME fact sheet 2021. European Commission. Retrieved from https://enlargement.ec.europa.eu/system/files/2021-09/albania_-_sme_fact_sheet_2021.pdf

European Commission. (2024, October 30). Albania 2024 report (Enlargement Package). European Commission. Retrieved from https://neighbourhood-enlargement.ec.europa.eu

Ferreira, J. J. M., & Teixeira, A. A. C. (2023). The role of entrepreneurial ecosystems in SME growth: A dynamic model. Journal of Small Business and Enterprise Development, 30(2), 245–262. https://doi.org/10.1108/JSBED-01-2022-0009

Georgescu, A. (2022). A business ecosystem framework for SME development: SMEs in the context of digitalisation and associativity. Management & Marketing: Challenges for the Knowledge Society, 17(1), 1–16. https://doi.org/10.2478/mmcks-2022-0001

Government of Albania. (2021). National Strategy for Development and European Integration 2021–2030. Council of Ministers.

Institute of Statistics (INSTAT). (2020). Structural business statistics, 2019. INSTAT.

Institute of Statistics (INSTAT). (2025). Statistics on small and medium enterprises, 2023. INSTAT. Retrieved from https://www.instat.gov.al/media/15006/results-on-sme-2023.pdf

International Labour Organisation (ILO). (2019). Small matters: Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs. ILO. Retrieved from https://www.ilo.org

International Telecommunication Union. (2024). Digital innovation profile Albania. ITU. Retrieved from https://www.itu.int

International Telecommunication Union. (2024). Measuring digital development: Facts and figures 2024. ITU. Retrieved from https://www.itu.int

Joint Research Centre. (2024). Smart specialisation in the Western Balkans and Türkiye: Lessons learned. Publications Office of the European Union. Retrieved from https://publications.jrc.ec.europa.eu

Kanda, W., Geissdoerfer, M., & Hjelm, O. (2021). From circular business models to circular business ecosystems. Business Strategy and the Environment, 30, Article 6. https://doi.org/10.1002/bse.2895

Kruja, A. D. (2013). The contribution of SMEs to economic growth: The case of Albania. European Journal of Business and Management, 5(16), 30–42. Retrieved from https://ideas.repec.org

Mayring, P. (2014). Qualitative content analysis: Theoretical foundation, basic procedures and software solution. Social Science Open Access Repository.

Ministry of Agriculture and Rural Development (MARD). (2021). Olives and olive oil sector study report. MARD. Retrieved from https://bujqesia.gov.al

Ministry of Agriculture and Rural Development (MARD). (2022). Strategjia e Bujqësisë, Zhvillimit Rural dhe Peshkimit 2021–2027. MARD. Retrieved from https://bujqesia.gov.al

Ministry of Economy, Culture and Innovation (Albania). (2025). National Strategy for Smart Specialisation (S3), 2025–2030. Government of Albania. Retrieved from https://s3albania.org

Montiel, I., Husted, B. W., & Christmann, P. (2021). Implementing the United Nations’ Sustainable Development Goals in international business. Journal of International Business Studies, 52(8), 1238–1261. https://doi.org/10.1057/s41267-021-00445-y

Myslimi, G., & Kaçani, K. (2016). Impact of SMEs on economic growth in Albania. European Journal of Sustainable Development, 5(3), 177–186. https://doi.org/10.14207/ejsd.2016.v5n3p177

OECD. (2018). Opportunities for all: The OECD framework for policy action on inclusive growth. OECD Publishing. https://doi.org/10.1787/9789264301665-en

OECD. (2019). Strengthening SMEs and entrepreneurship for productivity and inclusive growth. OECD Publishing. https://doi.org/10.1787/18151949

OECD. (2021). OECD SME and entrepreneurship outlook 2021. OECD Publishing. https://doi.org/10.1787/97a5bbfe-en

OECD. (2022). SME policy index: Western Balkans and Turkey 2022. OECD Publishing. Retrieved from https://www.oecd.org/publications

OECD. (2024a). A roadmap towards circular economy of Albania. OECD Publishing. Retrieved from https://www.oecd.org/publications

OECD. (2024b). Western Balkans competitiveness outlook 2024: Albania. OECD Publishing. Retrieved from https://www.oecd.org/publications

OECD. (2025). Economic convergence scoreboard for the Western Balkans 2025. OECD Publishing. Retrieved from https://www.oecd.org/publications

Pedersen, C. S. (2018). The UN Sustainable Development Goals (SDGs) are a great business gift. Procedia CIRP, 69, 21–24. https://doi.org/10.1016/j.procir.2018.01.003

Ratten, V., & Dana, L. P. (Eds.). (2022). Sustainable business ecosystems and social perspectives. IGI Global. https://doi.org/10.4018/978-1-7998-8811-2

Regional Cooperation Council. (2024). Balkan Barometer 2024: Business opinion survey. RCC. https://www.rcc.int

Sachs, J. D. (2015). The age of sustainable development. Columbia University Press.

Schramade, W. (2017). Investing in the UN Sustainable Development Goals. Journal of Applied Corporate Finance, 29(2), 10–17. https://doi.org/10.1111/jacf.12236

Sen, A. (1999). Development as freedom. Oxford University Press.

Sinanaj (Abazi), X., & Krypa (Tapija), N. (2023). Sustainable Development Goals in Albania. Review of Economics and Finance, 21, 2842–2846. Retrieved from https://refpress.org

Sharifi, A., Allam, Z., et al. (2024). Smart cities and SDGs: A systematic review. Cities, 140, 104467. https://doi.org/10.1016/j.cities.2024.104467

Stake, R. E. (1995). The art of case study research. SAGE Publications.

UN Albania. (2021). UN Sustainable Development Cooperation Framework 2022–2026. United Nations. Retrieved from https://albania.un.org

UNDP. (2022). Review of VET governance and provision in Albania. UNDP Albania. Retrieved from https://www.undp.org/albania

UNDP. (2024). Stocktaking report on SDG practices in agro-processing sector. UNDP Albania. Retrieved from https://www.undp.org/albania

UNDP. (2025). Growing with Your Business final reports 2024–2025. UNDP Albania. Retrieved from https://www.undp.org/albania

UN ESCAP. (2022). Guidelines for integrating the SDGs into national development planning. UN ESCAP. Retrieved from https://www.unescap.org

UNIDO. (2020–2024). Country programme for Albania. UNIDO. Retrieved from https://www.unido.org

UNIDO. (2023a). GQSP Albania: Fruits and vegetables value chain study. UNIDO. Retrieved from https://www.unido.org

UNIDO. (2023b). GQSP Albania: Medicinal and aromatic plants value chain study. UNIDO. Retrieved from https://www.unido.org

UNIDO. (2023c). Standards compliance analytics: Albania. UNIDO. Retrieved from https://www.unido.org

UNIDO. (2024). Industrial development report 2024. UNIDO. Retrieved from https://www.unido.org

United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable Development (A/RES/70/1). United Nations. Retrieved from https://sdgs.un.org/2030agenda

Van Zanten, J. A., & van Tulder, R. (2021). Improving companies’ impacts on SDGs. Business Strategy and the Environment, 30(8), 3703–3720. https://doi.org/10.1002/bse.2835

Van Zanten, J. A., & van Tulder, R. (2021). Analyzing companies’ interactions with SDGs. Business Strategy and the Environment, 30(5), 2396–2420. https://doi.org/10.1002/bse.2753

Vega-Pascual, M., López-García, A., & Jiménez-Crespo, R. (2025). Linking financial ecosystem and SME growth. Small Business Economics, 64(1), 77–98.

WIPO. (2024). Global Innovation Index 2024: Albania profile. WIPO. Retrieved from https://www.wipo.int/edocs/gii-ranking/2024/al.pdf

WIPO. (2025). Global Innovation Index 2025: Albania overview. WIPO. Retrieved from https://www.wipo.int

World Bank. (2019). Enterprise surveys: Albania 2019 country profile. World Bank. Retrieved from https://www.enterprisesurveys.org

World Bank. (2021). Albania country economic memorandum. World Bank. https://www.worldbank.org

World Bank. (2021). Climate change action plan 2021–2025. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2022a). Global Findex Database 2021. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2022b). Poverty and shared prosperity 2022. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2023). Albania Country Partnership Framework FY23–FY27. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2024). Business Ready 2024: Albania. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2024). Western Balkans regular economic report. World Bank. Retrieved from https://www.worldbank.org

World Bank. (2025, October). Western Balkans regular economic report (No. 28). World Bank. Retrieved from https://www.worldbank.org

Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications.