The role of SME development funds has been affirmed in many countries of the world. From 26 analyzed countries of Europe, America and Canada, the guaranteeing funds show a distribution in 19 of them.
By using these experiences in the development strategy of SME in Kosova, such funds must be given proper place.
The SME fund on investments and guarantees would be a financial organization which would be supporting and would lay out preconditions for SME development.
The activities of the fund could cover the following:
Within the activity to be performed by the fund an interconnection of its works and the banks would have to be established in those programs and projects to be financed through participation.
The aim of Fund's establishment would be first of all:
The founders of the Fund would initially be:
The budget of the Kosova would be ensured, aside from the part of regular assets for the basic capital of the Fund, also by the part of assets from the sale of enterprises through their transformation, parts of bank interests, solidary assets. The budget of the Kosova should necessarily be the founder to serve as a support of the initial phases of such programs and projects which would have a general character at this stage of the development of Kosova.
The Association of Kosova's Businessmen, in the capacity of the founder, would become a representative of small private enterprises, small entrepreneurs and other artisans who would be in no position to enjoy the right of the direct founder of the Fund because of the height of shares.
In this case a basic capital is formed - the founder's fund.
For the paid assets the founders obtain shares in conformity with the law on securities. By this, conditions are laid out for the work of the fund as a financial organization in the capacity of an actioneer society.
For each monetary unit ensured in the Fund, according to foreign experiences, the business bank will require the allowed loan or guaranteed covered value.
This means that the quota ensured with the Fund triples the loan subject or the ensured guarantee. Here lies the importance of these funds for the generation of SME, which often dealing with large banks do not find support because of the inability to find guarantors, because of non-qualitative assets, and because of the loan value and expenses of documentation elaboration.
By business policy acts, the Fund will be regulating in detail the way of distributing its potential in the investment quota for both the guarantees on one side, and continuing business on the other.
Aside from guarantee funds for important investment instigation there are also investment institutions such as follows:
These institutions differ from depository institutions as they do not necessarily offer special interests, and do not guarantee for investment value. Investment institutions do mainly invest in short-term securities, in long-term capital with a fixed interest rate, in real-estate, and similar.
Within these institutions the Investment Fund is distinguished, as it represents the financial broker between citizens and enterprises, on one side, and paper emitters on the other. Their role lies in portfolio diversification and portfolio professional management.
Through "auctions", citizens offer privatization coupons, while on the side of the demand there appear investment funds and that's where the conversion of privatization coupons with fund shares takes place. Through this operation, the investment funds become owners of the adequate portfolio part of shares of privatized enterprises which may invest in buying shares and realization of certain projects.
6.4.2. URBANIZATION
The situation of the urban development in Kosova's towns is presented by special variety in both volume and existing urban plans, and the concept and way of organization in the plain of urban plan implementation.
This situation in fact signals the need to certify the actuality of existing urban plans, and to determine new mechanisms for their realization, by which difficulties are eliminated in the relation of interconnection of economic interests of businessman entrepreneurs in connection with the SME generating and development.
The meaning of marketing in dealing with urban development must be sought in searching out possibilities for finding the easiest, fastest, and economically most rational way in performing the jobs regarding economic and service activities for various economic associations, local and foreign enterprises, and private entrepreneurs.
With the realization of the information and promotion function, the entrepreneur is offered all conditions and data for both the town (population, employment, economic structure, potentials of public and private sector), and for the expenses of the urban economy, such as - information on potential market and resources, calculation of expenses of urban documentation preparation, regulation of urban land and other urban resources (energy, water, urban traffic, parking-garaging.) All these create the economic basis for an engagement of assets in concrete projects. In this respect, an interconnection between urban institutions and institutions promoting SME development should be established.
6.4.3. TAXATION POLICY
Taxation and fiscal favoritism regarding SME will be based on priorities for certain production activities, especially for the following:
Fiscal eases will also be applied on the basis of importing customs, especially those of a fiscal character for the following:
The following enterprises would be exempted from profit taxation totally or partially:
6.4.4. INFORMATION NETWORK SHAKnet
The realization of this project has been initiated by the Association of Kosova's Businessmen (ABK/SHAK in Albanian). The Information network SHAKnet will be a specialized network for the development of business and economic activities in Kosova. The network will be distributed throughout Kosova, while its center will be in Prishtina where the WEB server will be set. It will be functioning entirely according to Internet principles and will become an integral part of this global international network.
The Information Network SHAKnet will enable an interconnection of all economic subjects of Kosova, especially of small and medium size enterprises in one common computer network. The network will also enable the connection of the Regional Business Associations with the Association of Kosova's Businessmen in Prishtina.
In the center of this network, in Prishtina, an Integral Data Basis will be established for the economic subjects of Kosova, as well as other data supporting market research and analysis. The Integral Data Basis may be used at any moment within 24 hours. The biggest part of this Data Basis will be public for the needs of economic subjects, and the other part will be used for the state institutions of the Republic of Kosova.
Within the Information Network SHAKnet, professional services of SHAK will be offered, such as legal and consulting information, services dealing with investments and export-import, digital publications of business interest, elaboration of offers and demands, realization of trading bourse. This mutual exchange of information will have a positive effect in Kosova's market and business.
The SHAKnet project, as a complex and multi-disciplinary project, has been anticipated to be realized in three phases:
The SHAKnet project will rapidly increase the level of computarization in Kosova. And, it will advance and modernize business in Kosova.