Albania saw an increase in the number of registered companies in 2021 – Released
According to INSTAT, in 2021 more than 15,000 new businesses were registered in Albania, bringing the total to 118,627 in a country of 2.7 million people.
The data also revealed that there were nearly 63,000 registered farmers with a tax number, bringing the total number to over 181,500.
The number of registered businesses in the country showed a 1.1% increase from 2020, with the largest type of business being service providers. Unsurprisingly, the capital city of Tirana has the highest concentration of businesses.
Although the figures are promising, companies with more than 50 employees represent only 1.7% of the total. These contribute around 51.1% of total employment in 2021, down slightly from the previous year.
More than 5% are foreign joint ventures, of which 40% with Italians and 5% with Greeks. This is the highest number recorded in Albanian history.
According to the data, some 6,635 companies were of this type, an increase of 10% over the previous year. A drop had been recorded in 2020 due to the impacts of the COVID-19 pandemic, but the increase far exceeds this rate of 6.4%.
In terms of business types, the IT sector experienced positive growth of 22%, correlated with 97 new businesses. While this is positive, it is also partly due to foreign companies seeking cheap labour. The sector is plagued with other challenges, as many well-educated and highly skilled professionals choose to work overseas for significantly higher salaries.
As for farmers, the amount who started working with a tax ID increased significantly between 2020 and 2021, at a rate of 28.3% to 62,922. Lushnje had the highest number of registered farmers. Of the total, nearly 30% work on mixed-use farms.
Women managed only 10% of farms and only 31% of all businesses.
A total of 700,763 people are employed, suggesting the presence of a large informal economy despite efforts to reduce it.