Using the econometric models, this paper addresses the ability of Albanian Small and Medium-sizedEnterprises (SMEs) to identify the risks they face. To write this paper, we studied SMEs operating in theGjirokastra region. First, qualitative data gathered through a questionnaire was used. Next, the 5-level Likertscale was used to measure it. Finally, the data was processed through statistical software SPSS version 21,using the binary logistic regression model, which reveals the probability of occurrence of an event when allindependent variables are included. Logistic regression is an integral part of a category of statistical models,which are called General Linear Models. Logistic regression is used to analyze problems in which one or moreindependent variables interfere, which influences the dichotomous dependent variable. In such cases, the latteris seen as the random variable and is dependent on them. To evaluate whether Albanian SMEs can identifyrisks, we analyzed the factors that SMEs perceive as directly affecting the risks they face. At the end of thepaper, we conclude that Albanian SMEs can identify risk
Using the Econometric Models for Identification of Risk Factors for Albanian Smes (Case Study: Smes of Gjirokastra Region)
