Asian Economic and Financial Review, 2016, 6(5): 261-276 261 † Corresponding author DOI: 10.18488/journal.aefr/2016.6.5/102.5.261.276 ISSN(e): 2222-6737/ISSN(p): 2305-2147 © 2016 AESS Publications. All Rights Reserved. PRIVATISING SOCIALLY OWNED ENTERPRISES, THE CASE OF KOSOVO Afrim Loku 1† ---- Nadire Shehu Loku 2 1 Finance and Budget Vice Rector of University of Applied Science; St. Rexhep Bislimi, Republic of Kosovo 2 Assistant Professor in European College of Kosovo, Pristina ABSTRACT This paper aims at analyzing activities, and some of the causes of economic expansion of Kosovo’s economy, mainly focused in stage of initial establishment of the private sector in Kosovo. The purpose of the paper is to present the current situation of privatization and results of this process, namely to review some of the obstacles, with a view of eliminating such obstacles and fostering development. The paper shall provide a comparison between the process and current point of privatization, with a special focus on obstacles to Kosovo’s economy. This paper shall prove an overview on the situation of privatization processes sectors, and it is an effort to mirror the main obstacles preventing from corruption and other factors. The main goal of the paper is to provide a basis for informing various actors involved in privatization process and economic development policy making in Kosovo. On the other hand, it is also an effort to contribute in consolidating information and statistical records, with a view of providing an accurate overview on Kosovo’s industry. © 2016 AESS Publications. All Rights Reserved. Keywords: Privatization, Industry, Obstacles to business, Employment, Exports, Imports, Economic expansion, SME growth. Contribution/ Originality Through this paper we analyzed the process of privatization in relation with all the indicators that will provide answers regarding the advantages and disadvantages of privatization in Kosovo‟s enterprises that consider this process as not completed, in order to reach conclusions which would help the continuation of the rest of this process by eliminating and argument the defects that may have the same. This becomes more important because the transition and privatization are not successful stories of Kosovo. 1. INTRODUCTION Kosovo is comparatively small country located in the South-East Europe. It has a population of approximately 1.8 million, with 49.53 percent male and 50.47 percent female, and percentage of people living in rural areas 61% (Kosovo Agency of Statistics (2015)). There are 166. Residents per square kilometer and approximately 297,090 households with 5.85 people each, on average. Kosovo‟s economic profile does not look very healthy. Kosovo is continuing to struggle with high rates of unemployment, approximately 35.3%. The Kosovo 2012 Labor Force Survey results (2013) show that around 1.2 million, or two-thirds of the total population, form the working age group (people aged 15-64). Of the total working age group, only 36.9 percent are active in the labor force (438,544 people). Asian Economic and Financial Review ISSN(e): 2222-6737/ISSN(p): 2305-2147 URL: www.aessweb.com