Perfect storm of negative indicators leave businesses in Southern Albania hurting.
TIRANA, Jan. 21 – An increase in the number of bankruptcies among businesses in Southern Albania has economic experts worried.
The crisis in neighboring Greece, which serves as a market for many businesses in this area, is the latest blow in a series of negative indicators for these businesses.
Increases in taxes, lack of a proper labor force and purchase power due to mass migration to neighboring Greece and other parts of Albania and higher prices for electricity have brewed up a perfect storm of negativity that is taking a heavy toll, according to a report by the Albanian service of the German public broadcaster, DW.
“We operate in the confection market. We have liquidity problems due to rising high taxes, problems with energy prices, and we have no help from the state. It’s also hard to find markets to sell what we produce,” Krisanthi Caro, a business owner in Gjirokastra told DW.
Due to state of businesses, there have been social consequences as an increasing number of workers are losing their jobs.
“I’ve started to cut workers. We used to get jobs from Greece and Italy, but now it’s difficult to ensure more work,” Mr. Caro added.
Local authorities see the bleak picture in their 2009 numbers too.
Gentian Thomallari, Gjirokastra’s municipal director of taxes, said, “During 2009 business has presented great difficulties in carrying out its annual payments. I can say that during 2009 there was a shutdown of about 200 small business entities. I think it has come for various reasons, the economic difficulties the country has passed, ongoing changes in legislation, and others.”
Difficulties facing small businesses in the region are considered as a serious cost burden that falls on consumers, according to economic analysts.
It leads to high prices, unemployment and low standard of living. Southern Albania has an underdeveloped infrastructure and extremely high levels of immigration, and is now under a World Bank study as one of the country’s poorest regions.
The unfavorable climate for small business has some looking to relocate their capital, which makes things even harder for unemployment in the region.
In Permet, Elida Sulollari, which produces paper napkins for restaurants told DW that it feels very difficult to continue production because the market is missing lacking due to abandonment of the region and low purchasing power.
She is thinking about moving her business to Tirana or one of Albania’s other large cities, Durres or Fier.
“I have great difficulty to keep my employees, because there is no market here, no purchasing power. I do not have the opportunity to continue here,” she said.
