Taxes, competition and finance for Albanian enterprises: evidence from a field study

This paper analyses the results from a survey conducted in 1999 of more than 100 enterprises in Albania. The main finding of the survey is that registered businesses regard competition from the informal sector as the most important problem they face in doing business. Unregistered firms have a significant advantage because they are able to evade the relatively high tax burden. Poor access to loans is also a significant obstacle. Enterprises tend to rely on their own sources of funds for business start-up and expansion. Large enterprises are more likely to apply for loans than small enterprises but, having applied, are no more likely to be successful.