Volume : 4, Issue : 4, April - 2015

THE IMPACT OF MACROECONOMIC CONDITIONS ON SME'S PROFITABILITY

Dr. Anila Cekrezi

Abstract :

<p> Small and medium enterprises are the major agents of economic growth and employment in Albania and profitability </p> <div>is one of their most important financial indicators. It is affected not only by in¬ternal factors but also by external macro </div> <div>factors. Therefore, the focus of this research is the evaluation of the impact of internal factors (leverage, size, liquidity </div> <div>and asset turnover) and macroecono¬mic factors (GDP growth rate and inflation) on SMEs’ profitability. The investigation uses cross–sectional </div> <div>time series data which are calculated from balance sheets of the firms. The results revealed a significant impact of leverage, liquidity, asset </div> <div>turnover and GDP growth rate on the profitability of SMEs. </div>