The establishment of governmental and non-governmental network of institutions should enable a coordination of activities between governmental institutions and many non-governmental subjects directly connected to the SME development. The function of this network should create the necessary development synergy in Kosova.
The SME support network of development should in particular be in the function of the following:
Presently in Kosova the governmental institutional network is not functionally related to the development of small and medium-size enterprises, and the non-governmental network is represented by the Association of Kosova's Businessmen, educational institutions, and certain institutions dealing with consulting, marketing or development. Briefly, there is a very symbolic level of development and this should be projected and developed from the very beginning.
In this respect, special importance is paid to the coordination of works between the central, regional and local government. Starting from Kosova's size, the possibilities for communication and particular regional specifics, one needs a rational solution. In this case, one should be starting from the need for surpassing bureaucratic procedure and creation of a network that ought to be both generating and supporting, but also able to absorb development initiatives.
On a republican/central level there should be the first orientation for subordination between ministries rather than creating a special ministry devoted to small business. In this respect, the following are the most likely partners for implementing a strategy of SME development:
The implementation of the state policy in SME development and promotion should be realized through two very important institutions, which as such are present in most of economically developed countries and countries in transition:
(1) Agency for SME and entrepreneurship development
(2) SME development funds.
6.5.1. AGENCY FOR SME AND ENTREPRENEURSHIP DEVELOPMENT
The agency should be an independent professional institution dealing with important analytical and professional work dedicated to the development of the private initiative and entrepreneurship. Its budget is ensured partially from state budget assets, and partially from the revenues created by its own. It has a Directing Board, Supervision Board, and Programming Board. In its work experts may participate. Its main function is to serve as a bridge linking the business community - SME, their organizations and institutions, and state organs - ministries, and should have a promoting and lobbying role for the small business initiatives and interest.
This agency should also have a coordinating and instigating role regarding initiatives and bodies on a regional and local plain. In cooperation with the Chamber of Commerce and Business Association it should promote SME potentials, products and services on a national level. Furthermore, it should have an impact on realization of programs of international cooperation, especially in the realization of technical and financial assistance from the world. The agency should make use and support the training of SHAKnet information center. The Agency should encourage and advance activities regarding managerial education, creation of entrepreneurship abilities, and business education.
Regional and local agencies for development and entrepre-neurship may be founded in main regions for several municipalities, and whenever needed, also development of private initiatives. They should have an impact in two directions:
(1) in connecting regional and local initiatives with the central ones,
(2) in mobilizing regional and local potentials, and in raising the professional level and encouraging on this basis regional and local development coalitions.
One needs to search as to which case one should go towards the formation of regional agencies, and in which on the local ones.
One of the important functions of these agencies is the instigation of creating a coalition of regional and local development encouragement and promotion. These coalitions, which in many countries (especially in Poland) have proven to be very successful, include many institutions of local government and non-governmental organizations. This coalition includes local authorities, regional divisions of state administration, public enterprises, businessmen and their associations, employment institutions, regional and local banks, certain non-governmental organizations, experts, farmers, trade-unions, political organizations, the media. Thanks to these coalitions a suitable climate may be established for SME coalitions, construction sites, entrepreneurship zones, incubators, technological parks, implementation of special programs of artisan development. As to which form of instigation should be stimulated between regional and local coalitions of development depends from the potentials, interests, and demands of particular regions and localities.
6.5.2. SME DEVELOPMENT FUND
Implementing an offensive strategy of SME development underscores the stimulation of the financial active. The SME development Fund (or Fund for Entrepreneurship), as an instrument of state support, would be a juridical person of a limited competence with respective organs of government and managerism. Sources of financing would derive directly from the state budget, assets of privatization dedicated to development, foreign donations, and foreign financial assistance. The function of this fund would be the following:
The Fund would allow irreversible assets on the basis of respective projects and programs, and would supervise over the expenses of destined assets.
6.5.3. NON-GOVERNMENTAL ORGANIZATIONS AND INSTITUTIONS
The non-governmental network of organizations supporting SME development may be wide and classified as follows:
Associations of entrepreneurs and businessmen, include, besides the Association of Kosova's Businessmen and Association of Artisans, also the formation of those associations which specifically may articulate certain interests of business community, enterprises of certain sectors, farmers, businesswomen, associations of enterprises dealing with consulting, research and scientific work, business training and other professional works.
Financial support funds may include various forms of support, however they would generally be funds of investment instigation, loan allowances, professional aid in preparation of documentation for investment, and would be playing a broker's role between SME and banks and financial market. These funds would have a regional distribution interconnected through banks, business associations and directly with the SME. These founds would be as follows:Funds of cooperation with the diaspora and countries of migration in mobilizing the potentials of the diaspora and cooperation with the host countries in creating conditions for the return of our citizens in emigration;
Institutions of education and training for business management, research and scientific institutions, and the institutions of consulting and other services should work under conditions of market competition, but also in the realization of particular programs in cooperation with the central agency, and regional and local ones, financial funds, and benefit, especially during their training stage, from cooperation with foreign partners and technical assistance.
The media play a very important role for the creation of a positive social climate of entrepreneurship development, affirmation of an entrepreneurship role in the society. In this respect, media of public information, but also the press and professional publications are of great importance.