Number of business in Albania grew in 2023

According to the Albanian Institute of Statistics, INSTAT, in 2023, the number of registered businesses in Albania grew by 4.1% compared to 2022, reaching a total of 130,338 entities.

Why is this relevant

The figures reflect a positive trend and a potential for expansion in Albania’s economy. 

According to INSTAT, the majority of the enterprises operate in the trade, service sector, accommodation and food service industries. Parallel to the increase in the number of these enterprises – which was greatly influenced by the growth of tourism in the country – the number of employees in these businesses also grew.

One of the striking findings is that service-oriented enterprises dominate the market, constituting 86.2% of all businesses surveyed and contributing 65.9% to the economy’s annual turnover. Trading enterprises account for 25.6% of the total, with the largest annual turnover in the economy at 40.8%. Small businesses, employing between 1 to 4 individuals, reman the backbone of Albania’s entrepreneurial ecosystem, representing 85.9% of the market. Their contribution is estimated at 22.6% in terms of employment and 20.2% in terms of annual turnover. However, enterprises with 50 or more employees, though representing only 1.6% of the total, employ half of the country’s workforce and generate 45.3% of the annual turnover.

Geographically, the regions of Tirana, Durrës, and Vlorë emerge as the epicenters of economic activity, hosting around 65.6% of all enterprises. Tirana leads with 61,602 enterprises, while Kukës comes last with just 1,408 registered businesses.

Foreign investment continues to play an important role in Albania’s economy. Currently, there are 6,938 foreign-owned or jointly-owned enterprises operating in the country. Italy holds the lion’s share with 43.6%, followed by Kosovo with 7.5%, and Turkey with 5.8%.