1% of Businesses Dominate the Economy

TIRANA, November 25

The Institute of Statistics (INSTAT) unveiled in a recent publication that the economic activity in Albania is dominated by one percent of active businesses. According to the preliminary results of the structural survey of enterprises 2015, some 1,033 companies out of a total 104.534 businesses realized 46.2 percent of turnover or Euro 6.2 billion. These companies provide about 40 percent of jobs and the major part of investments.
“During 2015, analyzing of indicators by size class of enterprises showed that enterprises with 50 or more employees constituted 1.0% of active enterprises, realized 46.2% of turnover, and engaged 38.9% of the total number of employees and invested 64.0% of the total investments,” INSTAT says.

Photo Credit INSTAT
According to experts, the main problem of Albania economy is not the fact that it is concentrated in a specific group of companies, but the fact that their number is small. Currently, 99 percent of businesses in Albania have less than 50 employees and companies with 1-4 employees make 89.3% of total enterprises.
Further on, the data from the survey confirmed that the total number of employees in 2015 increased by 17.1% compared to 2014. Investments reached Lek 207 billion from Lek 183 billion in 2014, marking an increase of 13.5%. The number of enterprises increased by 22.7% compared to 2014.

News Source/ Photo Credit: INSTAT