TERZIU Dr.Sc. Hysni The impact of the electronic market on the development of businesses in Kosovo Hysni Terziu Abstract This paper will chronologically link the start of doing business in the Republic of Kosovo and not only, with the current developments in this important sector of society and business barriers, as well as the various challenges presented to the market, how much is replacing the application of doing business through the use of information technology. The question is whether Kosovo has human, infrastructural capacities for the development of the electronic market, as a modern form of doing business, and how much serious effort and at the same time important contributions it makes to public and private engagement, to create an incentive environment and incentives for sustainable and competitive business in the Republic of Kosovo, always alluding to the electronic market as an opportunity for the future of doing business. The main purpose of this paper is to identify the opportunities that businesses have to influence economic development in the Republic of Kosovo, through their ability to generate new jobs, increase exports, and contribute to improving the living standards of the citizens of the Republic of Kosovo, using the electronic market as a contemporary and competitive form in business development. In order to realize such an environment, of course, we must consider two main issues, one to recognize and identify the problems that _____________________________ ILIRIA International Review – Vol 10, No 1 (2020) © Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo 72 Dr.Sc. Hysni TERZIU business has and another issue, how much human and material capacity Kosovo has, to provide a favorable environment of doing business through the electronic marketplace. Keywords: Electronic market; development; economy; business; servi- ces; information; Kosovo; 1. Introduction Since the invention of the first computer, mankind has realized that life on earth would change radically. The computer revolution of the past decades has brought about many changes in the way people communicate and organize their daily lives and activities. With the development of information technologies in general, and with the design of the first computer network in the world, through a new language of communication, both geographical barriers and time barriers in daily digital communication were overcome. This unlimited communication between computers directly resulted in unlimited communication between people. Later, in addition to specialized networks, with the development of the Internet, the information technology revolution was even more rapid. The Internet as a communication medium, with its capabilities and rapid development, revolutionized the way of doing business, so much so that it pushes a very large number of economists to declare that, in the coming years to do business through information technology will be one of the most preferred opportunities for businesses and consumers around the globe. Electronic business contains many challenges for organizations because it determines how organizations establish relationships with external parties (customers, suppliers, competitors, and markets) and how they operate to manage activities, processes, and systems. E-commerce is changing all the functional areas of business and the important goals of businesses, from advertising to bill payment. It also changes the face of information technology in general, and decision-making in particular. The constant changes of the internet market have a direct impact not only on the instruments, but also on the objectives and goals which consequently require new tools and the use of new strategies. These factors (tools, objectives, goals, and strategies) can be used to distinguish online _____________________________ ILIRIA International Review – Vol 10, No 1 (2020) © Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo The impact of the electronic market on the development of businesses in Kosovo 73 marketing instruments from traditional marketing ones. Not all traditional marketing instruments can be considered as online marketing tools but most of them can be used. The ubiquitous nature of the internet and its wide access to the world has made it an extremely effective way of communicating between businesses and consumers. The rise of Internet technology has great potential as it reduces the costs of delivering products and services and pushes the geographical boundaries in bringing buyers and sellers together. Qualitative benefits of using e-commerce can include improved information flow, new products and customer services, improved availability, market transparency, and reduced information processing errors. Throughout the years, knowledge about the impact of the internet and new technologies in the field of marketing has accumulated and due to the unique characteristics of the virtual world and its great business potential, a special flow of research has emerged attracting interest from strategy online and marketing discipline. 2. Electronic Business E-commerce, or e-business, is a modern methodology that addresses the use of information technologies as an essential enabler for businesses. The impact of e-business on purchases, sales, business collaboration, agreement making, decision-making, and the delivery of various services is so comprehensive that there is no organization left that has survived and affected by such an impact. Most organizations have considered the power of e-business, so they are committed to the further development of electronic connections on the Internet. The vast majority of these organizations (companies) need effective and specific leadership in order to support or pursue this new form of doing business in the right way. E-commerce is changing all the functional areas of business and the important goals of businesses, from advertising to bill payment. It also changes the face of information technology in general, and decision-making in particular. E-commerce supports both internal and external business functions1. 1 Turban, E. and King, D., Introduction to E-Commerce, Prentice Hall, 2002 _____________________________ ILIRIA International Review – Vol 10, No 1 (2020) © Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo 74 Dr.Sc. Hysni TERZIU While external e-commerce focuses on the use of information technologies in order to support the way the business communicates with the market, internal e-commerce focuses on the use of information technologies in order to support internal processes, functions and operations. The nature of competition also changes drastically, thanks to new online companies, new business models, and a variety of e-commerce-based products and services. E-commerce offers non-parallel opportunities for companies to grow internationally at low cost, increase their market share, and reduce costs. Ultimately, e-commerce is highly linked to decision-making and assists or assists decision-making processes for different organizations and customers. Most of the most reputable corporations in the world of Information and Communication Technologies have been successfully transformed according to the trends of the new digital economy. The question is, what can we learn from this success?, What are the difficulties that must be faced?, What prior preparation must be considered?, What are the critical factors for success?, etc. In order to answer such questions, what is the step with which the Kosovar business is following these developments and applying such a methodology, we will try to describe the most important processes of e- business, the importance and challenges of implementation of various models of doing business in the network, so in this dispute we will present through this paper. E-commerce businesses need to understand the basics of marketing and use them effectively in order to be successful and profitable2. 3. History of business sector developments in the Republic of Kosovo Kosovo's economy since 1999 has been largely driven by international aid, the public sector and remittances. The role of the private sector, especially SMEs, has been relatively weak. Despite this, Kosovo is still in the transition phase, where entrepreneurship and the creation of small businesses are expected to play an essential role on the road to a modern free market economy and therefore to economic development and growth. 2 Kleindl, B., and Burrow, J., E-Commerce Marketing, Thomson, 2005 _____________________________ ILIRIA International Review – Vol 10, No 1 (2020) © Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo The impact of the electronic market on the development of businesses in Kosovo 75 Kosovo suffers from a balance of payments deficit where imports significantly dominate exports. This is mainly due to the fact that SMEs in Kosovo are not competitive at the international level. Weak exporting SMEs hinder the further contribution of SMEs to GDP, job creation and economic growth. Exports are dominated by base metals and minerals produced by large companies. Due to the unfavorable business environment and the lack of creative entrepreneurial culture, Kosovo lacks innovative fast-growing firms, which are key contributors to job creation in developed western economies. Over 50% of all SMEs operate in the commercial sector, which is characterized by small and unproductive investments. This model, followed by the “me too” copying