Developing a Sustainable Economy Through Entrepreneurship: the Case of Albania

Research indicates that access to larger markets, curtailing corruption, and creating an entrepreneurial culture are important ingredients for a successful transformation from a centrally planned economy to a market economy. This paper argues that among those three factors, creating a business culture and cultivating entrepreneurial skills are the most important factors in the case of Albania. Albania's transition during the last two decades is often used as a microcosm to investigate the transformation process toward a market economy. The creation of an entrepreneurial economy can foster economic development, systematically fight corruption, and allow Albania to economically join the rest of Europe. A framework modeling conditions necessary for fostering entrepreneurship in Albania is examined, and several recommendations are offered. There are many lessons that other small economies in transition can learn from Albania's experience.