Venture Capital as a New Dimension of Financial Intermediation. The Possibilities of It’s Application in Albania


Abstract The central focus of this paper are the private investment funds, and especially venture capital, as one of the most common investment options connected with the state of our economic development and financial stability. Initially, the study will be extended to the analysis of legislative and regulatory framework in Albania regarding these new forms of intermediation. Further the study will present the possibility of this application of intermediation in Albania.
Financial stability is a fundamental condition that the financial system to increase its level of efficiency in the intermediation process, contributing to the direction of resources towards investment in productive projects within known parameters and control business risk. By analyzing the current problems associated primarily with small and medium entrepreneurs, observed not only in Albania but also in some neighboring countries such as Serbia, Macedonia and other countries of Central and South-Eastern Europe, limited access to long-term funding sources is one of the most disturbing issue in recent days.
Keywords venture capital, private equity, efficiency, financial system, intermediation process
JEL classification G24
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