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

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.