4.2. THE STRUCTURE OF PRIVATE ECONOMY

In the ownership structure of enterprises prevail private enterprises with over 90%. Cooperative enterprises, which can be in both sectors, make up 4.1%, mixed enterprises with 4.3%. Conclusively, private enterprises are dominating.

In the beginning of development of private enterprises, in order to survive, and with as less investments as possible, the major number of enterprises was established in the domain of trade (commerce). Later, some tendencies of reorientation in some other activities appeared, but the effects were quite modest. The share of manufacturing enterprises in the total number of enterprises is about 9%. Despite significant concern, manufacturing orientation is still not consolidated, which represents an obstacle in activating of manufacturing potentials and in satisfying market demands, especially in food production sector, for which sector Kosova possesses necessary natural and human facilities. But, these facilities are not being quite well utilized in diversification of the structure of private enterprises according to activities they perform. A small proportion of industrial enterprises 6.4%, agricultural 1%, construction 2%, transports 3.1%, tourism 3.8%, arts and crafts 2%, financial services 3.7%, social services (education, culture, health) 2.3% is quite obvious. Trade enterprises dominate with 75.5%. These enterprises work as retail and wholesale trade enterprises without any particular specialization. Wood processing, printing, plastics processing, construction materials, food products are represented in the domain of manufacturing. The services are mostly concentrated on trade, transport of goods, and tourist services.

Agricultural farms represent a very important segment of private economy of Kosova. These have a great economic importance in activating the population and in providing markets with agricultural products. Nearly 65% of Kosova’s population live in villages.

In present circumstances, when the business of state/social sector of agriculture doesn't practically function, individual agricultural manufacturers, besides the function of cultivators, have also taken the role of managers; that means that they are being transformed into farmers. Now, they start to produce more according to market demands. In this period, farmers in a more rational way have been exploiting the land and other manufacturing means, but on lower levels compared to farmers in developed countries.

It is estimated that in the beginning of 1997 in Kosova, excluding the component of migration, there were about 325 thousand families, from which about 185 thousand living in villages. From the total number of families, 82 thousand are pure agricultural families, about 85 thousand are mixed, and 18 thousand are non- agricultural.

The average of arable land per family is about 1 ha. And if we add to this the fact that the structure of agricultural manufacturing is very extensive, where cereals dominate and there is no support from the state, we can see that financial effects are very poor and not sufficient for obtaining sufficient family budgets. Usually the lack in income is compensated by the support of family members temporarily working in foreign countries. Active agricultural population is estimated to 120 thousands.

4.2.2. PRIVATE STORES

Kosova has a rich tradition in various handicrafts practiced in private stores. The actual social-economic situation has pushed people even more to the practice of these activities. More successful have been especially those who possessed an experience on certain handicrafts. In terms of domains, the highest proportion has trade, arts and crafts and transports, which testifies for a considerably poor economic structure.

The development of arts and crafts in Kosova is facing various administrative obstacles of Serb regime. Too many and too high taxes (fees), administrative difficulties about ensuring of premises, high punishments and plunders by Serb authorities, various obstacles in imports, as well as the lack of investment means, despite the market demand, are permanent restrictions in the development of this activity.

In the structure of private stores according to the activities dominate trade (31.4%), arts and crafts (29%), transports (18.4%), tourism (13.6%). We deal with traditional handicrafts stores, retail trade, restaurants and cafes and the means of goods and passengers transport. There are few stores dealing with industrial works (1.1%), and those dealing with construction (3.8%). Private dispensaries participate with 1.2%.

During the economic and social crisis caused by the Serb regime, the so-called "gray" economy is a considerable source of income and provisional employment. The so-called "clothes markets" are organized in the cities of Kosova, where various products are offered, from food to industrial products, mainly imported. Since there are no concrete notes about performers of this activity, it is estimated that a considerable number of citizens is forced to deal with this activity. Such traders usually face various difficulties, followed often by systematic pillages of police.

According to the poll, the majority of private enterprises are micro-enterprises. 18% of polled enterprises have 1-5 workers, 25.3% have 6-10 workers, 17.3% have 11-20 and only 8.3% of enterprises have over 20 workers.