Strengthening Albania’s SMEs: Integration into International Value Chains

Abstract

This study explores the integration of Albanian Small and Medium-sized Enterprises (SMEs) into international value chains (IVCs) and their importance for economic development. SMEs make up over 99 per cent of businesses in Albania, so improving their global integration is essential for boosting productivity, exports, and innovation, especially in the context of Albania’s European integration goals. The research draws on literature related to SME development, global value chains, and economic transformation in transition economies. It contributes to ongoing debates about addressing structural barriers and competitiveness gaps in SMEs. A descriptive analytical method is used to examine the benefits, challenges, and policy implications of SME participation in IVCs based on secondary data, reports, and comparative studies. The findings show that while integration into IVCs can bring technology transfer, market access, and improved competitiveness, Albanian SMEs face serious challenges. The study highlights the need for targeted policies, stronger institutions, and capacity-building to help SMEs compete globally. This paper provides a context-specific analysis of SME barriers and opportunities in Albania, offering new insights into regional economic integration and policy design.