Title page 1

Contents 8

Foreword 4

Acknowledgements 6

Reader's guide 13

Acronyms and abbreviations 17

Executive summary 20

Albania: SME definition and data coverage 22

Albania: SME sector overview 26

1. Assessment findings by policy dimension 34

2. Creating an enabling environment for SMEs and entrepreneurs 103

2.1. Promoting an SME-friendly policy and institutional design 104

2.1.1. Reinforcing regulatory, institutional and policy frameworks for SME lifecycle support 104

2.1.2. Securing systematic, comprehensive and transparent dialogue between policymakers and SMEs 107

2.2. Levelling the playing field for SMEs 110

2.2.1. Protecting and monitoring fair market competition 113

2.2.2. Providing efficient judicial and out-of-court dispute resolution mechanisms 115

2.3. Facilitating access to finance for SMEs' operations and growth 118

2.3.1. Providing direct financial support to SMEs' operations and growth 123

2.4. Providing services essential to SMEs' operations and growth 127

2.4.1. Support services for SMEs' expansion and growth 130

References 135

3. Fostering SME sustainability and resilience 146

3.1. Harnessing SME agility to navigate global market trends 147

3.1.1. Smoothing SME pathways to a green economy 147

3.1.2. Boosting SME competitiveness in sustainable value chains 150

3.2. Building robust mechanisms for SMEs to prevent and manage crises 154

3.2.1. Enhancing crisis-resilient strategies to prevent SME bankruptcies 154

3.2.2. Increasing SME recovery capacity and second-chance opportunities 156

3.3. Enabling SMEs by providing them with access to sustainable financing solutions 158

3.3.1. Supporting SMEs in an evolving sustainable finance framework 158

3.3.2. Increasing SME access to sustainable (bank and alternative) financing 160

3.4. Strengthening SME support systems and networks for sustainable growth 163

3.4.1. Scaling up public non-financial support for SMEs in a green and resilient economy 164

3.4.2. Exploiting the power of networks for the sustainable growth of SMEs 165

3.5. Accelerating research and innovation to future-proof SMEs 168

3.5.1. Advancing strategic innovation for a green and resilient economy 168

3.5.2. Capitalising on knowledge networks for driving SME innovation 170

Annex 3.A. Methodology 175

References 176

4. Supporting the digital transformation of SMEs in Albania 183

4.1. Strengthening SMEs' readiness for the digital transformation 184

4.1.1. Strengthening policy and financial support for SME digital transformation 184

4.1.2. Assessing the digital maturity of SMEs in Albania 188

4.1.3. Enhancing digital skills and capacities 190

4.2. Increasing SME productivity through digitalisation 194

4.2.1. Leveraging the use of online platforms to drive SME growth 195

4.2.2. Fostering innovation and collaboration for SME productivity 197

4.3. Establishing a trustworthy and safe business environment 203

4.3.1. Adapting data protection to evolving digital threats 203

4.3.2. Strengthening SME cybersecurity resilience 205

4.4. Supporting the sustainable uptake of advanced technologies 208

4.4.1. Encouraging SME adoption of artificial intelligence and emerging technologies 209

4.4.2. Promoting a sustainable digital transformation 211

References 216

5. Harnessing human and social capital for SME development in Albania 224

5.1. Building foundational human capital for SME competitiveness 225

5.1.1. Fostering entrepreneurial skills and mindsets through education 225

5.1.2. Bridging the divide between education and training systems and SMEs 229

5.2. Developing SME workforce knowledge and skills 233

5.2.1. Understanding and anticipating skills needs 233

5.2.2. Addressing skills needs of SMEs through adult education 236

5.2.3. Upskilling to support AI adoption and use 239

5.2.4. Improving talent availability by empowering women entrepreneurs 241

5.3. Strengthening social capital by advancing social entrepreneurship 246

5.3.1. Mapping the social enterprise landscape 246

5.3.2. Creating an enabling environment for social enterprises 248

References 251

Annex A. Methodology 262

Annex B. Western Balkans Business Survey - Navigating the Digital and Green Transition 269

Table 1. Definition of micro, small and medium-sized enterprises in Albania 22

Table 2. Core statistical sources for the SME sector overview, Albania 23

Table 3. Statistical data coverage by thematic area, Albania 24

Table 4. Sectoral profile of MSMEs in Albania, 2023 29

Table 5. Key indicators of the MSME sector in Albania, 2023 levels and 2010-2023 growth 30

Table 1.1. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 1, Sub-dimension 1.1 36

Table 1.2. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 1, Sub-dimension 1.2 38

Table 1.3. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.1 40

Table 1.4. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.2 41

Table 1.5. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.3 42

Table 1.6. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.1 44

Table 1.7. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.2 45

Table 1.8. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.3 46

Table 1.9. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 4, Sub-dimension 4.1 49

Table 1.10. Albania's implementation of the SME Policy Index 2022's recommendations for Dimension 4, Sub-dimension 4.3 50

Table 1.11. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 4, Sub-dimension 4.4 51

Table 1.12. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 5a, Sub-dimension 5a.1 54

Table 1.13. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 5b 59

Table 1.14. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 6, Sub-dimension 6.1 61

Table 1.15. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 6, Sub-dimension 6.3 63

Table 1.16. Albania's implementation of the SME Policy Index's 2022 recommendation for Dimension 7, Sub-dimension 7.1 65

Table 1.17. Albania's implementation of the SME Policy Index's 2022 recommendation for Dimension 7, Sub-dimension 7.2 67

Table 1.18. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 8a 71

Table 1.19. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 8b, Sub-dimension 8b.1 73

Table 1.20. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 8b, Sub-dimension 8b.3 75

Table 1.21. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 8b, Sub-dimension 8b.4 76

Table 1.22. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 9, Sub-dimension 9.1 78

Table 1.23. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 9, Sub-dimension 9.2 79

Table 1.24. Albania's implementation of the SME Policy Index's 2022 recommendations for Dimension 10, Sub-dimensions 10.1 and 10.2 86

Table 1.25. Albania's implementation of the SME Policy Index's 2022 recommendation for Dimension 10, Sub-dimension 10.3 87

Table 2.1. List of active credit guarantee schemes supporting SME access to bank finance in Albania, 2026 120

Table 2.2. List of programmes supporting the development of private equity in Albania, 2024 122

Table 2.3. Overview of main active programmes that provide targeted funding to SMEs in Albania, 2026 124

Table 3.1. Albania's strategic and policy frameworks for SME greening 148

Table 3.2. Sources of support for SME greening in Albania, 2024 165

Table 4.1. Albania's strategic and policy frameworks relevant for SME digitalisation and digital transformation 185

Table 4.2. Overview of Albania's financial instruments for SME digital transformation 187

Table 4.3. Albania's strategic and policy frameworks considering SMEs and their uptake of emerging technologies 209

Table 5.1. Frameworks covering entrepreneurial learning in Albania 226

Table 5.2. Progression of competences through classroom activities 228

Table 5.3. Key components of entrepreneurial support under the Youth Guarantee scheme in Albania 230

Table 5.4. Policy frameworks guiding skills intelligence in Albania 234

Table 5.5. Skills assessment and anticipation tools in Albania 235

Table 5.6. Selected upskilling programmes for artificial intelligence in Albania 240

Table 5.7. Strategic frameworks supporting women's entrepreneurship in Albania 241

Table 5.8. Social enterprise regulatory framework in Albania 248

Boxes 11

Box 1.1. Spotlight: Startup Albania Agency: Building the Foundations of a National Startup Ecosystem 54

Box 1.2. Spotlight: Simplifying public procurement procedures 58

Box 1.3. Spotlight: The establishment of sector skills committees in Albania 70

Box 1.4. Spotlight: Digitalising export promotion: The launch of the Export Albania platform 83

Box 1.5. Spotlight: Enterprise Europe Network Albania: Strengthening SME internationalisation and innovation support 85

Box 1.6. Spotlight: AIDA's annual SME Grant Scheme 90

Box 2.1. Slovenia's Business Register as an example of whole-of-government SME data harmonisation 110

Box 2.2. Good practice example: Promoting mediation as a first step in commercial cases in Italy 117

Box 2.3. Good practice example: Promotion of financial education in Ireland 127

Box 2.4. Good practice example: Korea's integrated approach to growth-oriented SME support and internationalisation 134

Box 3.1. Promoting SME participation in GPP in Costa Rica 154

Box 3.2. Spotlight: Easing access to sustainable finance through an integrated platform 159

Box 3.3. Good practice example: The EU Platform on Sustainable Finance 163

Box 3.4. Spotlight: Integrating SMEs into local knowledge networks - Circular City Lab Tirana 172

Box 3.5. Good practice example: SME: Green - a green innovation voucher for SMEs in Denmark 174

Box 4.1. Spotlight: BIM4WB - Enhancing digital competence in Albania's construction sector 193

Box 4.2. Good practice example: Scaling SME digital and managerial skills through integrated acceleration programmes in France 194

Box 4.3. Spotlight: Albanian E-Commerce Association's "Digitally Fit for E-Commerce" programme 197

Box 4.4. Spotlight: DiVA - Albania's first European Digital Innovation Hub accelerating SME digital transformation 198

Box 4.5. Good practice example: Strengthening SME e-commerce through co-ordinated infrastructure and platform support in France 201

Box 4.6. Good practice example: Strengthening SME digital innovation through structured collaboration with research and industry in Finland 202

Box 4.7. Good practice example: Belgium's Cyber Security Guide for SMEs: A step towards practical cyber resilience 208

Box 4.8. Good practice example: Germany - Accelerating SME' adoption of artificial intelligence through compute access, applied testbeds and... 214

Box 4.9. Good practice example: Linking digitalisation and eco-efficiency for SMEs: Germany's Digital Jetzt and Federal Grant Programme for... 215

Box 5.1. Teachers' guidance for "Fundamentals of Entrepreneurship" in Albania 228

Box 5.2. Implementing practical entrepreneurial experiences in primary education: A good practice example from Norway 232

Box 5.3. Strengthening pathways for skills for the green transition in Albania 239

Box 5.4. Good practice example: Micro-credentials in New Zealand 244

Box 5.5. Strengthening policy co-ordination to advance women's entrepreneurship: Italy's Women's Business Committee 245

Box 5.6. Spotlight: Empowering disadvantaged groups through social entrepreneurship in Albania 247

Box 5.7. Policy reform on social enterprises in the Brussels-Capital Region 250

Table A A.1. Changes to the weights of thematic blocks 266

Table A A.2. Clusters and constituent policy dimensions 267

Table A B.1. SME target population in Western Balkans and Türkiye, 2025 269

Table A B.2. Western Balkans Business Survey: Navigating the Digital and Green Transition - Sections and subsections 270

Table A B.3. SME respondent sample in the Western Balkans and Türkiye, 2025 271