Business creation goes in circles

During the last three years (2006-2008) the creation of new Albanian businesses has surpassed the numbers of businesses existing before, reports the local press (Agon, 5.07.2009) quoting data from the National Institute of Statistics (INSTAT). 38.5 % of the businesses that were still existent in 2008, had been created before 2004, while 44.5 % others were created during the three last years, 2006-2008.
A careful reading of the data quoted by the press shows that the majority of the consolidated businesses were created before 2004 and suggests new enterprise creation as mainly small time creations. Out of 3545 enterprises employing more than 10 workers, 2263 were created before 2004, states Agon.
Business climate improvement is quoted by the newspaper as one of the main factors explaining the “fertility” of new business creations during the last three years. In addition is red tape reduction to barriers. Agon lists the creation of the National Registration Center (Qendra Komb쵡re e Regjistrimeve, QKR) where creation of enterprises can be registered in one day and the creation of the National Licensing Center (Qendra Komb쵡re e Li覮cave, QKL) which enables quick licensing (in as little as 24 hours).
In 2008 enterprise creation growth is reported to have been 18.5 %. In 2009 the tendency seems to continue as the press reports creation of 19,884 new enterprises to date.
Reports evidence another tendency; that of the creation of businesses in small cities and especially in the Northern part of the country. Data show the northern districts of Shkod철and Lezh롴o be the most prolific, with 31.1 % and 27.2 % of the total businesses created during this period [2006 – 2008].
At the end of 2008, in the hospitality sector (bars, restaurants and hotels) 107,342 enterprises were active. Half of these enterprises were based solely in Tirana and Durr쳠(capital of Albania and the local port near the capital).
Trade (import-export) is the main activity chosen by the majority of the new enterprises. 44.2 % of them are commercial ventures.