Entrepreneurial ability of graduates in Kosovo

Bekim Syla PhD cand.

European University of Tirana

3rd LSEE Research Network Conference -

Social Cohesion and Economic Governance -

Skopje 2017

Abstract

Graduated Kosovar’ entrepreneurs face challenges which are not easy to overcome. The painful feeling of extinction is in itself the quality of education acquired during their studies. This paper tries to give answer of two questions that posed upon the completion of the Master studies where entrepreneurship is one of the core modules, where the graduate put the skill that benefits as a graduated entrepreneur from these institutions to start a journey as an entrepreneur and the practical challenges on market share.

Respondents have been interviewed in the main areas of: Educational, Gender and

Demographic aspects of which they have raised issues regarding the financing of young

entrepreneurs and minorities, and especially gender related challenges of young educated

entrepreneurs.

Key words: Entrepreneurship, Education, Acquired skills, Competition ability, Finances,

Female entrepreneurs, Minority entrepreneurs.

Introduction

Low turnover.

Highest interest rates for borrowing in the region,

high informality and corruption…then, this reduces the possibility of

developing the entrepreneurial skills.

The graduates are mainly the entrepreneurs of micro, small and

medium size enterprises, which in most cases continue the family

inherited business,

except in the health sector, and the most innovative

entrepreneurs are the graduates in the field of civic

engineering, even though their number is very small.

‘’Me too” graduates’ entrepreneurial

activity

The entrepreneur’s ability is to do what you feel, to be

educated in that regard and then to put in use the

education with passion. However in Kosovo occurs the

opposite, mainly by copying others’ ideas such as “me

too” rather than identifying yourself with something

new, and this increases the possibility of failure leading

to despair and suppression.

Registered entrepreneurs.

Knowing the fact that Kosovo has the youngest population in the region,

with 60% under the age of 35, it has the highest unemployment rate in the

region, from 1.8 Mil. Inhabitants (KAS, 2015). Kosovo has 180.000

(KBRA)registered businesses where more than 80% are small and

medium size enterprises, which operate mainly in the trade industry; in

addition Kosovo has the highest imbalance of import-export (approx. for

every exported Euro, we import 23.7 Euros) (CBK).

http://ask.rks-gov.net/media/2119/vleresim-popullsia-e-kosoves-2015.pdf page 5-9 - Last accessed on 06.03.2017

http://arbk.rks-gov.net/desk/inc/media/257488C8-8A56-4C4F-B3EE-7982ACBFF1EC.pdf page 21-29 - Last accessed on 03.03.2017

http://bqk-kos.org/repository/docs/2012/RBP_nr%2011.pdf page 19-31 - Last accessed on 05.03.2017

Statistics of students

Students Statistics 2014/2015

Level Public University Private Institutions

Female Male RAE Female Male RAE

Bachelor 22344 18039 18 5723 6749 0

Master 4493 2947 1212 1376 0

0

5000

10000

15000

20000

25000

Female Male RAE Female Male RAE

Public University Private Institutions

Bachelor

Master

Source: Education Statistics in Kosovo MEST[1]2016

Continues…

Graduated

Public Private

Female Male RAE Female Male RAE

Bachelor 2962 1965 1 2640 2576 0

Master 558 540 0 247 399 0

0 500 1000 1500 2000 2500 3000 3500

Female

RAE

Male

Pub

lic

Uni

vers

ity

Pri

vate

Master

Bachelor

Source: Education Statistics in Kosovo MEST[1]2016

[1]http://masht.rks-gov.net/uploads/2016/08/statistikat-e-arsimit-ne-kosove-shq.pdf page 89-116- Last accessed on 05.03.2017

Statistical employment data

If according to[1] (KAS 2011), there are 140,946[2]active enterprises out of 300,000

registered enterprises (IBK,2016), and with the high informality rate up to 35%[3] (FES-

Prishtina), in Kosovo every year are registered approx. 90,000 new enterprises[4]

(TAK,2016), and according to KAS 2016,… “The unemployment rate in Kosovo reached

32.9%, whereas the employment rate 25.2%. The unemployment is more spread among

women with 36.6 %, comparing to men with 31.8%.

Source: Kosovo Agency of statistics (KAS,2016).

*RAE is represented with under 0.5% of enterprises in Kosovo,

57.70% 36.20%

7.10%

Unemployment

15-24

35-44

45+

employment

Production 14.7%

Trade 14.4%

Education 12.1%

Construction 9.5%

Employment Rates and Educational Attainment % by Gender

Source:Kosovo LFC.2009[1]

As we see from the figure below, female employed is under percentage of men but

with continuing education with graduated degree it overpasses men with the same

level of education approximately 10% at the master degree. This shows that, the

education for females is the instrument to become an employed person but not

necessary being entrepreneur

Gender Business Ownership

Partnership or Co-ownership

Source: Basics performance indicators of registering business in Kosovo

In order to calculate the increasing trend of women participants and the findings show that

18-21% of entrepreneurs are graduated, this report is too narrow comparing it with men since

only 38.35% of men entrepreneurs are graduated, so the participation of men is lower in

comparison with women who also have a low participation but with higher number of

graduates as a whole.

Adapting to the Market

The graduates adapt to the market the entrepreneurial skills acquired during

their studies. Nowadays in Kosovo, there are more entrepreneurs who have not

studied entrepreneurship, but they are very successful entrepreneurs, such as: in

the field of Health, Jurisprudence and Civic Engineering.

Whereas those who have studied entrepreneurship, approximately 23% of

them are developing their entrepreneurial skills mainly in the field of services,

such as: accountants, financial advisors, etc

The graduates’ barriers to enter the market

The graduates face challenges of applying into practice the methods they have learnt during their studies,

despite this, for female entrepreneurs traditionally there was a prejudice that they are weaker in taking

reasonable decisions as entrepreneurs, from the biological aspect, however even the RAE community faces

difficulties to enter the market due to the market prejudice.

16% of the interviewed men consider trade and competition as the entrepreneur’s determinant

of success, whereas 73% consider the financial aspect as the key aspect in absorbing skills to

overcome any obstacles.

The women consider the prejudice and tradition as the main barrier/obstacle of the

entrepreneur’s ability. They say that the graduated woman who can have access in finance

initially must overcome the idea of being “privileged” in the market. 47% consider the gender as

an obstacle, 26% consider the finance, whereas less than 8% consider the competition.

From RAE community, the main challenges in order to be a successful entrepreneur are

finance and the entrepreneur’s personality in the community (RAE community). 85% consider the

finance and only 11% consider the educational level as determinant of the entrepreneur’s ability,

however even the location of the enterprise is of much interest for them.

Conclusions

The participation of graduates as entrepreneurs in the market have not given the desired impact regardless of the

efforts it is still unvalued in Kosovo. However, the trend of advancing the entrepreneurs’ abilities is higher with the

entrepreneurs who intend to study entrepreneurship, mainly at private colleges.

The graduates mostly own small and medium size enterprises and a very symbolic number own large enterprises,

compared with the large number of graduates, the existence of graduates is negligible.

The most entrepreneurs who are prone to innovation and advancement are very few among the graduates regardless of

the knowledge they possess; it is still about their undisclosed entrepreneur’s spirit to be able to master the market in which

they operate.

It is still unknown how this happens knowing that Kosovo actually has the highest rate of unemployment, it has the

youngest population under 35 years old and it has so many graduates, and it cannot manage to systemize under the

entrepreneurial umbrella the graduates so they can generate incomes for themselves and their families.

Continues..

Women graduates prefer to have a stable job rather than entering into the field of

developing their career as entrepreneurs, and a reason behind this is the tradition and the

biological aspect of commitment towards the family, especially women with children who

dedicate their time to the children and find themselves more comfortable as employees

rather than entrepreneurs.

The position of communities is not determined by their ethnicity, and their opportunity

and access to the education is still not at the desired level. Therefore, the goal of those who

are being educated is to find a job in government level, both central and local, and this goal

reduces the entrepreneurial ability of this community which is anyway less educated.

Recommendations

1. In order to have more information about educational entrepreneurs

background the Application file it is recommended to Adding to the

BRA registration form a column with the education details of the

enterprise owner,

2. It is recommended that: MTI has to do more to inform the graduates

about the opening and operating procedures of a business in Kosovo,

3. From the institutional shareholders it is recommended to support

female entrepreneurs with professional, financial advice and assistance

on market analysis before establishing a business,

4. Strongly recommended to establish within MTI the strategic investment

and investors’ center,

5. Also, releasing from tax payment for at least two years women and RAE

community entrepreneurs who hire 5 of more employees,

Continues..

A. Therefore it is recommended introducing the entrepreneurship as a

subject in the faculties which are producing graduated entrepreneurs,

such as the medicine, civic engineering and jurisprudence.

A. Recommended combating informality and possibility of corruption of

the tax collectors and bodies operating in the field of taxation.

A. It is recommended enabling the preferential positions in the

demographic units to the women entrepreneurs versus men

entrepreneurs.

B. And showing care for communities’ entrepreneurs, it is recommended

to encourage by the state budget the graduated entrepreneurs from

RAE community, as well as to subsidize them if this can increase the

number of graduates and entrepreneur from this community.

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Thank you!!!