Obstacles to entrepreneurship in a transition business environment: the case of Albania

Abstract

Purpose -To critically evaluate the obstacles and problems encountered by entrepreneurs while doing business in Albania, which is an economy in a transition. Design/methodology/approach -The research methodology incorporates a survey that uses interview and questionnaire techniques. The sample was determined on a stratified basis (probability-random sampling) involving the random selection of respondents from various strata of the population. Findings -The most important obstacles faced by entrepreneurs in Albania include unfair competition, changes in taxation procedures, lack of financial resources and problems related to public order. Bureaucracy and corruption do not appear to represent significant barriers to entrepreneurship.Research limitations/implications -Responses from the selected strata were not distributed proportionally among the targeted sample. Practical implications -Legislative amendments and new legislation which focus specifically upon small business and enterprise development should be implemented by the Albanian government in order to achieve a transparent fiscal reform and create a more favorable business environment. Originality/value -This research provides a critical evaluation of entrepreneurial activities and the obstacles that entrepreneurs encounter while operating in the Albanian economy in transition.

An Analysis of SMEs’ Attitudes and Practices Toward Tax Compliance in Zimbabwe

“…Keeping two sets of accounts by SMEs is supported by Bitzenis and Nito (2005) who concluded that many firms in Albania, in the formal sector, evade taxes to some extent by maintaining "two sets of books" while unregistered firms have a significant tax advantage because they evade the high tax burden. The findings on bribery (51%) and on lack of enforcement (21%) are fairly high, which affect the collection of compliance fees and taxes in the country.…”

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Enterprises Dealing with Corruption: A Microeconomic Analysis

“…The data showed that corruption is also influenced by demand-side factors, agencies that provide services to firms are more prone to corruption. Bitzenis and Nito (2005) conducted an empirical research to investigate the various obstacles that Albanian entrepreneurs encountered in their local business environment. Their study showed that the most important obstacles the entrepreneurs encountered in Albania included unfair competition, changes in the taxation procedures, energy crises, and lack of financial resources.…”