By Eni Muça
Over the past two decades, the startup landscape in Albania has evolved from an unfamiliar concept into a continuously growing ecosystem. With a steady flow of new ideas, institutional support, and increasing youth engagement, the country is gradually approaching the model of nations that have built their identity around innovation and entrepreneurship.
20 Years of transformation
Between 2005 and 2010, the term startup was virtually unknown in Albania. Small businesses were dominated by traditional structures and lacked support centers. After 2010, the first serious steps were taken with the opening of incubators, accelerators, and tech hubs. The peak of small business formalization—though not necessarily startups—came in 2015, when thousands of farmers were registered with tax IDs (NIPTs), creating an artificial spike in new business numbers but still impacting statistics.
Post-2020, changes deepened, especially for startups. The Albanian government approved Law No. 25/2022 “On Support and Development of Startups,” established an official Startup Register, and launched the “Startup Albania” Agency, offering grants, mentorship, and promotion both domestically and internationally. By 2025, hundreds of startups had received financial and moral support to develop their ideas.
Women in Entrepreneurship: Gradual rise, significant challenges
According to INSTAT (2020), only 25.5% of active businesses in Albania are led by women. Most are micro-businesses in sectors like trade, beauty, and social care. However, in the latest startup grant call (2025), 47% of applications came from women—a notable increase reflecting growing confidence and ambition. Supportive networks, women-focused training programs, and initiatives like “Women on Boards Albania” are strengthening the position of women in a traditionally male-dominated space. National goals aim to empower 50,000 women entrepreneurs by 2030.
Total Number of Startups and New Enterprises
There is no precise official number of startups alone, as the term only gained legal recognition in 2022 and depends on self-declaration in the official register. However, economic enterprise data can serve as an indicator. Between 2005 and 2025, Albania has seen thousands of new businesses launched each year.
- On average, around 21,800 new enterprises are registered and active annually—a number that has increased compared to the early 2000s.
- The peak year was 2015, with 56,787 new business registrations (including a large wave of newly formalized farmers).
- After 2015, the number stabilized: e.g., 17,377 in 2014, 17,508 in 2019, and 17,319 in 2020—indicating a consistent flow of 17,000–18,000 new enterprises per year.
Regional distribution
Entrepreneurial activity is heavily concentrated in urban areas, with Tirana leading by far.
- By 2015, 34–40% of all businesses in the country were based in Tirana (peaking at ~39.7% in 2014).
- Even after a relative decline due to the registration of thousands of rural farmers, Tirana still accounts for 28–30% of active businesses.
- In 2020, the Tirana Municipality had ~46,926 active enterprises, making it the clear startup hub thanks to its large market, university presence, investor networks, institutions, and infrastructure.
Following Tirana are regions like Durrës, Fier, Vlorë, and Shkodër, albeit with significantly fewer businesses. According to INSTAT, the regions of Tirana, Fier, and Korça collectively house 54.9% of local business units. The Central Region (Tirana + Elbasan) is the most developed, with 41% of active enterprises in 2020. This means nearly half of Albania’s businesses—and potential startups—are based in central Albania. Less urbanized areas like the northeast and southeast have weaker business activity, often due to lower urbanization and youth migration to Tirana or abroad.
Still, initiatives like Tech-Hub Korça and youth centers in Shkodër and Gjirokastër aim to create local startup micro-ecosystems, supported by donors.
Diaspora and foreign-owned businesses
Tirana has also emerged as a magnet for foreign-owned businesses. Approximately 64.9% of businesses with foreign ownership are located in Tirana, followed by 12.1% in Durrës. In total, about three-quarters of foreign businesses are concentrated in these two urban/coastal areas. This distribution shows that internationally-oriented businesses and diaspora founders are choosing Tirana as their base of operations.
Success vs. Failure rates (Survival vs. Closure)
In the startup world, an important metric is the survival rate of new businesses. Albania, like many regional countries, has a high business turnover—many open each year, and nearly as many close.
- In 2019, 17,508 new businesses were registered, while 18,001 exited the market—resulting in a net decline (~3,700 fewer active businesses compared to 2018).
- During the COVID-19 pandemic, a wave of closures was expected, but government support measures (like tax breaks and subsidies) helped: in 2020, only 13,275 businesses closed, an improvement over the previous year.
Despite these short-term supports, long-term survival remains low. Based on past INSTAT reports, only 1 in 2 new businesses make it past their 5th year. Most closures occur in the early years due to small market sizes, limited capital, or founders emigrating.
Success stories
Despite the challenges, some startups have experienced meaningful growth and regional expansion—especially in tech, with operations extending into Kosovo, North Macedonia, or targeting Western markets. StartupBlink data estimates that the average Albanian startup has raised around $1.77 million in funding, though this is skewed by a few well-funded projects, while most operate on modest budgets.
Most active sectors
Key sectors in Albania’s startup scene include:
- Technology & ICT – The most prominent sector, especially with growing digital literacy and export potential.
- Tourism & Hospitality – Inspired by Albania’s tourism boom, startups have emerged around booking platforms, digital guides, and local experience agencies.
- Agrobusiness & Agritech – While agriculture weighs heavily in national statistics, truly innovative startups in this space remain few.
- Health & Education – Post-pandemic trends have fueled startups in telemedicine, ed-tech, and online training platforms.
Vision for 2030
Albania has taken steps to create a legal framework and institutional infrastructure for a functioning startup ecosystem. The challenge now is to build a sustainable culture of entrepreneurship—one where startups not only emerge but thrive and expand internationally.
With a combination of creative youth, ambitious women and men, and active public policy, Albanian startups are on a promising path toward creating real economic and social impact by 2030.
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