Transformations  in
Business & Economics

The Entrepreneurship in Developing Countries: A Case of Kosovo
Janez Prasnikar, Matjaz Koman, Gazmend Qorraj

ABSTRACT. Is self-employed always performing entrepreneurial functions? Does more self-employment automatically lead to the development of entrepreneurship? What conditions need to be met that more self-employment means also more entrepreneurship?

We address the above dilemma by studying entrepreneurship in Kosovo. Kosovo is particularly suitable for such analysis because of undeveloped infrastructure, weaknesses in the legal and regulatory framework, poorly developed financial system and high unemployment rates. As a result, Kosovo is lacking in economic momentum, particularly the joint dynamic activity of firms in different industries. This is reflected in very limited occupational choice.

The main contribution of the paper is that in case of very limited occupational choice, a decision for self-employment does not lead necessarily to the development of entrepreneurship. As such, self-employment in less developed transitional countries can less likely serve as a base for the development of entrepreneurship. Therefore it is apparent that the role of government is to foster the introduction of more occupational choices by providing the opportunity (support) to gain employment in large, medium or growing small companies.

KEYWORDS: self-employment, entrepreneurship, transition countries, Kosovo.

JEL classification: L26, M13, O12, P12, P2.