Financial sustainability of MFI’s - key factor for the growth and development of SME’s in Albania

The Albanian economy, as an economy of a developing country actually characterized by a positive trend upward. Macroeconomic indicators are demonstrating relatively stability, the financial system is healthy and progressing economic activity. SMEs contribute strongly to economic progress of the country. The importance of SMEs mainly valued as they contribute to the growth of employment in the country, producing for the domestic market mainly using national resources. Agribusiness is an integral part of the national economy and requires continued financial support. For several factors they are not supported financially from dhe commercial bank in Albania. Microfinance institutions has been a powerful tool for the development of SMEs, especially in rural areas, creating new jobs while contributing to economic development of the country. This research will study the impact and collaboration of MFIs in Albania, in promoting the creation, growth and development of SMEs, which is closely linked to an important aspect of the activities of MFIs, even with financial stability and increased performance. The financial sustainability of MFIs is a crucial factor in related to the ability to provide services in full compliance with the objectives, scope and mission. Achieving sustainability is a guarantee for MFIs to be safe in their activities in order to consolidate their future. The essence of this paper is to contribute to the theoretical and practical analysis about financial sustainability of MFIs in Albania with regard to strengthening relations MFIs and SMEs.Keywords: Sme; Mfi; Financial Stability; Funding Sources

Keywords:

SME, MFI Financial stability, funding sources,

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