A study in the International Journal of Economics and Business Research has looked at the challenges facing one post-communist nation, Albania, in terms of its business start-up culture. The research investigates the role played by the country’s business ecosystems but shows that while globally, start-ups are perceived as engines of economic growth, innovation, and job creation, Albania is lagging behind its European counterparts, particularly Estonia and Lithuania, in nurturing this part of its economy.
Valbona Mehmeti, Bajram Korsita, and Erisa Musabelli of the Aleksander Moisiu University of Durres in Albania, have compared the business environments of Albania, Estonia, and Lithuania, and specifically the relationship between each country’s business ecosystem and the number of active start-ups. The researchers used time-series data, to rank ecosystem quality and innovation capacity, as well as the total number of active start-ups in each country. The findings reveal a strong, and perhaps not surprising, positive correlation between how conducive a country’s business environment is to start-ups and the number of such active businesses.
Other post-communist nations such as Estonia and Lithuania have 1100 and 500 active startup companies per one million population. For Albania, the number is rather sobering. Albania hosts just 88 startups per million inhabitants. This enormous gap could be of great concern given the increasing importance of start-ups in driving economic growth globally. Indeed, the research suggests that this low level of startup activity is stifling economic development in Albania.
The researchers suggest that development could be nurtured by a more favourable business ecosystem, but this will take a lot of effort from government, policymakers, the extant businesses, and other stakeholder, perhaps even international partners. The point is that it is not simply about the raw data, but about the quality of start-ups. The study suggests that public institutions, the private sector, and society at large must now collaborate to create the right conditions for start-ups to flourish in Albania. Funding, supportive regulatory frameworks, and strong collaboration between universities, industry, and government are needed.
Mehmeti, V., Korsita, B. and Musabelli, E. (2025) ‘Business ecosystems and development of start-ups in Albania: a correlational analysis’, Int. J. Economics and Business Research, Vol. 29, No. 9, pp.1–12.