ANNEX 3

REPORT ON POLLING OF PRIVATE ENTERPRISES

Having in mind the need for an in-depth analysis on the current prevailing economic and social situation in Kosova, "Riinvest " (the Institute for Development Researches), since this Project started up, it had as an objective, the creation of the solid base of documentation and information.

Data collected from the second sources on the economic situation in Kosova have not been published in a whole, due to the fact that the Institute of Statistics of Kosova, has been closed down since 1990-s.

Data which were published by the institutions of statistics in charge by Belgrade regime, often were incomplete and not constantly updated. We have been facing these problems for many years now, in particular when the private enterprises in question. As an aftermath of this state, there was an apparent need that one of prime activities of this Project, to be the polling of the private enterprises in Kosova.

The objective of the survey was to provide most relevant information on the situation of the private sector of the Kosovian economy, in particular; on the institutional and business environment, development and managerial potential of these enterprises. The data collected will be of great use for the further implementation of the Project, in particular in formulating the recommendations on building-up the open market economy, and the strategy of the development for business issues.

THE CONTENT OF THE QUESTIONNAIRE

The content of the poll has been prepared on the basis of the project requirements. The questionnaire contains 118 different questions and it has 13 chapters, which include:

l. Personal data (6 questions); II. Data on enterprise (13 questions); III.The activity, Management, Turnover and the structure of Managed Fund (20 questions); IV. Information Enterprise (10 questions); V. Investment (12 questions); VI. Accounting, Auditing and information (19 questions); VII. Premises (7 questions); VIII. Personnel (13 questions); IX. Marketing (3 questions) ; X. Type of products (4 questions); XI. Price (1 question); XII. Distribution (3 questions); XIII. Promotion (7 questions).

THE SAMPLE

In the sample were included 300 private enterprises. The selection of the sample was done according the rules applied in double random samples. The structure of double random sample is:

When determining the size and the structure of the samples, it was aimed on having a sample, which will represent the real situation prevailing in private enterprises. The structure of the sample was prepared on the basis of the real situation and relying on statistical data. The number of 300 enterprises (more then 3% of them have permanent activity), is a sufficient to be covered by the samples. The determining the enterprises within the sample, is done according the rules of applied in random samples without repetition.

THE CONDUCTING OF THE POLL

Having on mind that the confidence of the results depends on the way data are collected on the spot. "Riinvest", has made the selection of pollers by testing the enterprises and has trained their staff for a certain period of time. The collection of the data on the spot has been implemented by 30 advanced third grade students of the faculty of Economics in Prishtina, under the permanent supervision of the project team.

The collection of basic data lasted 12 days.

All those polled were owners or managers of private enterprises.

Being permanently in contact with the enterprises, during the collection period, we would like to conclude by saying that despite the difficulties, the poll was completed successfully.

The processing and statistical analysis of the data was conducted in Excel 97. All the questions, introducing the results has been shown on tables, diagrams and graphic representation.

On the forthcoming researching steps based on the already collected data, in the future can be carried out in-depth additional analysis, such as: cross examination, the researches on correlation and regression between two or more variables as well as the detailed analysis regarding the different indicators of variation.

MAIN CONCLUSIONS

After the implementation of the processing phase and the statistical analysis of data, the information obtained indicated the following:

l. Personal Data: The gender of those being polled is as following: 97% male, however, 3% female. The average age is 38.6% years. Mostly were polled persons with high degree education, 40.3%, highly skilled 27% and secondary school by 32%.

II. Data on Enterprises: The regional structure and the activity of the enterprises is given in the sample itself, therefore, we are not going to introduce it hereby. The greater participation was by the enterprises registered in 1990’s, 91, 92, and 03 approx. 74% . Mostly dominates enterprises having one founder, with the participation 67.7%. As regard the enterprises with two or more founders, and have family links is by 71.6%. As regard the qualification structure of the founders, the majority of them were with secondary schools, 44.9%, University degree 33.2%, and highly skilled 20.7%. The unemployment, has been the major factor indicated for the enterprises for being registered, this was the case for 61.3%. As regard the enterprises with two or more founders, There has not been any special agreement between them but there was so-called reached the agreement of understanding, 74.2 per cent.

III. The activity management, turnover and the structure of managed funds: The enterprises in most of the cases have registered many activities, but mainly dominates trade about 68%. The participation of 64% have the enterprises with full responsibility. The sale is realized in Kosova, 80.2%. However, in Serbia and Montenegro is 15%, in other places 4.8%. Round 60.3% of the enterprises feel that the profit in 1997 compared to 1996 has got worse. The average value of the property and equipment fund is about DM. 77 000. Most of the enterprises, i.e.77.3% do not have the insurance for property and equipment fund. About 44.3% of the enterprises have registered export activities. The participation of the enterprises that have imported is 33.3%. The obstacle for not implementing the import target were: the permission, 19.5%, the duly change of laws 18.5%, the current prevailing political situation 16.6%, the cost for taking over the goods 15%. Products mostly imported were: building materials, 22.3%, reproduction materials, 17.9%, chemical products 12% and juices 8%.

IV. Computerizing of the enterprises : About 66.0% of private run enterprises have got the computers. 65% have got the model 486 and Pentium. The computers are likely used for financial records 61.7% . Only 17.3% of the enterprises have got the E-mail. Only 0.03% of enterprises are communicating with Internet. Only 36.4% that have got computers have organized training seminars for usage of computers. The maintenance of computers is performed mainly by suppliers, 73.7%.

V. Investments: Almost 80% of the enterprises have had some investment activities, but 88.7% have not used the Bank loans. The equipment purchased was mainly imported outside Kosova 34.9% in Serbia and Montenegro, and 50.8% in other places. The payment was effected cash in hand67.0%. Only 3.3% of the enterprises had joint venture investments with foreign partners. The main obstacles of the investment activities were: the uncertainty and prevailing political situation 33, the lack of Banks support 24%, the lack of assets, 23% and others 20%

VI. Accounting and Auditing: The accounting of the private run enterprises is kept by the outsider, 48.7%. About 58.5% of the auditing conducted by financial fiscal police was incorrect and stern and likely to go for bargaining. About 53.7% of financial fines were charged by flat rate. ,21% were due to allegedly lack of financial records, 16.5% allegedly lack of needed documents, etc. Only 6.1% of the enterprises were forced to pay bribes. About 71.5% of the enterprises declared that they don’t enjoy the legal insurance in they daily busyness activities. The larger number of the enterprises, participated on the regular basis in different seminars organized on the same topic.

VII. Business premises and facilities: Round 35.7% of the private run enterprises have got their own premises. Otherwise, 36.0% pay rent and 28.3% are combined ones. The average rental for the square meter is DM.7.44. Most enterprises, have available, 40-200 square meters, round 41.6%. About 77.7% of the enterprises have not changed their headquarters, 49.7% of the enterprises have responded that they have got sufficient business place.

VIII. Personnel (Staff): The private enterprises emlpoy in average 9.19 workers. The average number of female employed is as the following : 14.3% elementary school, 60.0% secondary school, 11.5% highly skilled and 14.2% with the university degree. The average wages of the employees taking into the account the education is: DM 211.2 for elementary schools, DM 237.8 with secondary school, DM 365.8 highly skilled and DM. 427.6 with the university degree. About 81.7 of the staff have not attend training programs, the main reasons for not doing so were: The shortage of the financial means and the difficulties for going abroad, 63.3% cases were noted. Only 32.7% of the private run enterprises have sacked their workers, as the main reasons marked were: not respecting the working schedule and the misuse of the position 77.8%.

IX. The Marketing: 71.3% of the enterprises do not conduct the marketing researches. The marketing is conducted by itself, based on intuition and informal ways, chit-chats with business associates, friends and others.

X. Type of products: About 50% of the enterprises have got more then 100 different patterns of products, which are on sale, however, the trading enterprises have got in average from 1-3 product with the participation 42.7%. The majority of the enterprises 93% of them do not use the BAR code standardization, however, the advantage of the products in the market is given on the low price and high quality, about 55.0%.

XI. Price: The main cost method used for the price policy information was the competition, 58.7% of the cases, however, the method of the basis of the cost + profit, is being used in 36% of the cases.

XII. Sale: The majority of pooled enterprises 65.3% sell their products directly, 52.3% of them have got the warehouses for retail and gross sale, however, 60.7% of them have available shops for retail and gross sale.

XIII. Promotion: Only 8.0% of the private run enterprises use on permanent basis the media for advertisement, 87.6%. The advertisement and entertainment costs participate by 66.0%.

The determining the advertisement budget is done on the basis of the financial power (participation 43.3%). About 75% of the enterprises do not assess the financial rate of return of advertisement, and as the reason for having the advertisements, is the tough competition, 56.1% of them had that attitude.

POLLING TEAM

Luan Gashi, Shkumbin Saneja, Shkėndije Himaj, Mimozė Godanci, Nora Arifi, Fetije Puka, Akile Cėrnabregu, Burbuqe Malazogu, Albana Gashi, Agron Jetishi, Bekim Bytyēi, Qamil Tolaj, Edis Shabani, Isa Mulaj, Emine Ramosaj, Ekrem Hysenaj, Rozeta Hajdari, Liza Marku, Arben Bėrbatovci, Avdullah Hoti, Arianit Dehiri, Arian Shala, Armend Osaj, Jehona Abdyli, Lorika Maliqi, Arieta Vula, Mimoza Kusari, Valon Lluka, Shkelzen Hajdini, Eleonora Bytyqi, Edin Simnica, Avni Tafilaj, Kushtrim Mehmetaj, Meleqe Zejnullahu, Shpėtim Arifi, Besim Elshani, Valėza Aliu, Arben Seferi, Armend Sahiti, Bujar Kuqi.