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Determinants of Entrepreneurship Activity – Empirical Evidence from Albania

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  • Kristi Dashi
  • Eni Numani

Abstract

This paper aims to explore the factors that determine the initiation of new enterprises in the context of Albania, a Western Balkan, upper-middle-income country. The study builds upon an extensive literature research on entrepreneurship activity and its determining factors. Through empirical analysis, we examine the influence of economic and socio-demographic factors on the initiation of new businesses. The regression analysis reveals a negative relationship between the tax burden index, innovation and the number of families with economic assistance, and a positive relationship between an individual’s life satisfaction and education with the density of new businesses. By offering empirical evidence and recommendations, this study contributes to the existing literature and provides valuable insights to be used by policymakers, practitioners, and researchers who are interested in promoting entrepreneurship and economic development in developing countries.

Suggested Citation

  • Kristi Dashi & Eni Numani, 2025. "Determinants of Entrepreneurship Activity – Empirical Evidence from Albania," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 150-164.
    • Handle: RePEc:bas:econst:y:2025:i:5:p:150-164
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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