Around 700 businesses were closed in the first half of this year in Kosovo. The increase in imports, the rising cost of electricity, the lack of workforce, unfair competition, and the absence of a law to protect businesses are considered some of the factors that contributed to the closure of hundreds of businesses, KosovaPress reports.
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Although a number of new businesses were registered during this period, the figure of closures is considered to be an alarming signal for the government and state institutions.
With the bankruptcy of businesses, many jobs are being lost, which in turn increases the poverty rate in the country.
The executive director of the Chamber of Trade and Industry Kosova, Kushtrim Ahmeti, told KosovaPress that instead of business closures, Kosovo needs new business openings and the strengthening of existing ones. However, as he pointed out, facing multiple challenges is making this process increasingly difficult.
Ahmeti stressed that high labor costs, inflation, dependency on imports, and rising electricity prices are among the main factors threatening the sustainability of businesses.
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He added that harsh competition from imported products, price increases, and the lack of a law protecting local businesses are making their survival difficult.
Another serious problem, according to Ahmeti, in addition to the lack of workers, is the departure of experienced ones, which is heavily damaging the local market.
“Every business closure in Kosovo should be an alarm for any government or institution. Even though this number is smaller than in 2024, it is still significant… Considering the developments happening, labor costs, various inflations Kosovo continues to face due to massive imports, and the latest developments with the energy issue… all these are putting a large number of businesses at risk of not being able to operate… The dependency of our market on imports is continuously increasing, and prices depend on those imports. Businesses are also facing very strong competition from imported products and cannot survive with the same prices they once held in the market, as today their bills are three times higher than before… The vast majority of our businesses are being hit extremely hard by the ongoing departure of their own workers, many of whom had long work experience… Another big problem is that Kosovo still lacks a law to protect its businesses. Many businesses operate side by side in the same field, creating fierce competition,” Ahmeti said.
According to the Ministry of Industry, Entrepreneurship, and Trade (MIET), 698 businesses closed in the first half of 2025. During the same period last year, 833 businesses were closed. Compared to 2024, the number of closures has decreased this year.
“In the first half of 2025, 698 businesses were closed, while in the same period of 2024, 833 businesses were closed. For the entire period January–December 2024, a total of 1,633 businesses were closed,” MIET said in a response to KosovaPress.
Economy expert Adem Qorrolli said that in recent years, closures are no longer happening only among seasonal businesses, as before, but are also affecting large enterprises with many workers.
According to him, the main causes are high import costs, institutional expenses, and pressures from public debts.
He said the cost of electricity and other services that are import-dependent are significantly burdening the situation.
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Qorrolli also emphasized that the lack of workforce and the inability to operate with reduced staff are increasing insecurity, while larger companies are the ones facing the highest risk of closure.
“What is unfortunate, and also shown in statistical data, is that business closures used to be mainly seasonal — artisan shops, car washes, or small businesses. But in the past three years, the number of closures is affecting enterprises with many workers. The main reasons are high import costs, high institutional costs, and public debt pressures, as businesses still lack proper financial management education… Another huge burden on businesses are the unpredictable institutional costs such as electricity, water, and other imported services. What is being felt the most is the workforce, since businesses cannot function without 10 or so workers from their organizational structure 10 workers… The workforce is showing its weight today and is giving uncertainty (to businesses), while the ones in most difficulty are the large corporations, which are either closing or near closure. Energy pressure or energy bills are giving the final push for their shutdown,” Qorrolli said.
Alongside closures, MIET said that from January to June this year over 6,600 new businesses were opened, a higher figure than in the same period last year.
“January – June 2024 saw a total of 6,065 new businesses opened. January – June 2025 saw a total of 6,642 new businesses opened,” MIET said.
Regarding the profiling of new businesses, Kushtrim Ahmeti said that the vast majority of new businesses opened in recent years are service-oriented or commercial, but not production-based.
He emphasized that the lack of readiness to open production businesses is hindering local production growth, job creation, and economic empowerment.
“The problem in general in recent years is that the vast majority of new businesses are service or trade, not manufacturing. That’s where we lag. Because it is very easy for traders: they bring ready-made products and sell them, services are also readily available… The problem is there is no willingness to open manufacturing businesses, which would bring growth in domestic production, job creation, and provide stronger economic power to our country,” Ahmeti said.
Meanwhile, expert Adem Qorrolli said new businesses are mostly being opened with only 5 to 10 employees, which according to him does not provide security for long-term development.
He explained that when such businesses try to expand, they face major challenges that may prevent them from surviving.
“Service businesses, such as accounting firms with foreign contracts and various insurance companies — which have seen increased demand from institutions — are the ones being opened. But they do not provide security, as most have no more than five employees. This is alarming, as companies with 200 to 250 workers are shutting down, while those with only 5–10 are opening. This does not define that trade or industry is developing in Kosovo; instead, it signals an alarming trend that Kosovo’s market is only suitable for small businesses. But when they try to expand, they face huge challenges,” Qorrolli noted.
KosovaPress also asked MIET about the nature (profile) of businesses that were closed and those that were opened, but no response was given.
However, in 2024 more than 1,600 businesses closed, while in 2023 nearly 1,500 went bankrupt.
Recently, Acting Minister of Finance Hekuran Murati wrote on Facebook that the number of new businesses last year also set a record. According to him, in 2024 a total of 12,051 new businesses were registered, representing a 5.6% increase compared to the previous year.
“The good news is that 2025 is expected to surpass 2024 with a new record. By June 2025, a total of 6,642 businesses have already been registered, and at this pace, the figure for the whole year is expected to exceed 13,000 new businesses,” Murati wrote.
