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Survival after crises/ The average age of businesses reaches 15.7 years, up from 12.3 in 2019

2026-05-01 15:20:00, Ekonomi CNA

Survival after crises/ The average age of businesses reaches 15.7 years, up from

Albanian businesses are consolidating their market positions, as the World Bank Enterprise Survey for 2025 revealed that the average age of Albanian businesses has reached 15.7 years. This indicator marked an increase compared to the 2019 survey, where the average age of firms in Albania was around 12.3 years.

The longevity of businesses indicates a higher resilience of the private sector, as a good portion of enterprises have managed to survive the economic shocks of recent years. However, when this figure is compared to Europe and Central Asia, where the average age of businesses is 21.5 years, it is seen that Albania still has room to improve its business ecosystem.

Medium-sized enterprises have had a longer lifespan with an average of 21 years, surpassing even large businesses which are 18.1 years old on average.

The WB survey data shows that Albanian businesses are very little open to foreign capital. Only 0.6% of businesses in the country have at least 10% foreign ownership, a figure much lower than the regional average of 7.9%. This shows that, although local businesses are maturing, they remain largely closed and with little participation from international investors.

The increase in the average age of businesses is showing that the economy has passed the chaotic phase of transition.

The majority of businesses currently on the market have gone through the dangerous cycle of the first 5 years, where the failure rate is higher. The survey shows that we now have enterprises that have built resilience to crises, have better market knowledge and more stable relationships with banks and customers.

Businesses that have been around longer tend to be more productive because they have gone through the learning-by-doing process. They have had time to invest in technology, train staff, and improve their processes.

In an economy with mature businesses, there is usually greater security for employees and a more predictable contribution to the state's coffers through taxes.

However, an increase in the average age without a sufficient entry of new businesses could be worrisome. If the age increases simply because new businesses (start-ups) are not being opened, the economy risks losing dynamism. Old businesses are sometimes not resilient to innovation, making do with their market position, while new businesses bring in the latest ideas and technology. /Monitor