Barriers to doing business in Kosova: an institutional approach
by Durim Hoxha
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 8, No. 2, 2009

Abstract: This paper aims to contribute to the ongoing debate on barriers to growth and institutional influence in entrepreneurship. The empirical evidence comes from Kosova – a unique postwar environment characterised by a transitional economy. We employ the institutional approach developed by North (1990) in explaining the barriers to doing business in Kosova. Our results show that in the absence of the appropriate institutional setting, the informal factors emerge as a barrier to the growth of the firms in Kosova. More important, these obstacles harm especially fast-growing firms. Our study proves that institutions, both formal and informal, are important factors in shaping the entrepreneurial activities in Kosova.

Online publication date: Thu, 02-Apr-2009

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