Opening new businesses in the pandemic, fighting for survival

The most registered sectors are large and retail trade and repair of motor vehicles and motorcycles.

The number of extinct businesses is about 1,505.

But, Agim Sahini, chairman of the Kosovo Business Alliance, stresses that the number of extinct businesses is 20,000, but that people have not completed legal procedures for extinction.

He says the reason for the increased business opening trend in the pandemic period is the large number of citizens who have lost jobs. And in the absence of assistance from state institutions, citizens left without jobs, in some cases, as alternatives have found the opening of some small trade business.

Because, on average, in Kosovo within a year, 2,000 businesses are closed and 8,000 businesses are opened. The trend of opening new businesses during this period is a phenomenon that rarely occurs in Kosovo”, Sahin told Radio Free Europe.

Anita Corca, a mother of two, has opened a clothing store in Pristina in September last year. Because of its pandemic, it shows that it works alone at the bar until the situation improves in the country, resulting in daily improvement. She also mentions other challenges caused by pandemic in newly opened business.

It's hard because we still can't freely invite customers to come to the bar, because most of the time we work through social networks, online sales. We have taken all protective measures, but there is still a dose of fear to invite clients”, Corca points out to Radio Free Europe.

Ramos: Such a phenomenon occurred three decades ago

The main factor for opening new businesses, in pandemic times, is in most cases fighting for survival, free Europe professor of economics at Pristina University Berim Ramosaj tells Radio Free Europe.

This pandemic environment has endangered the existence of family well-being, but collective and people seek alternative solutions. The solution is to enter businesses even in areas that may not have much knowledge. But, with financial mobilization, whether individual or family, they try to find needed solutions”, he said.

Thousands of open businesses in pandemic time

According to Ramosj, the phenomenon of opening small businesses in Kosovo has occurred three decades ago.

This phenomenon has been observed even in the 1990s, when Albanians have left their jobs from Serbia's then regime because among key factors, the individual's entrepreneurial mentality to start a business is not enough, but many times the mentality is influenced by the environment. In fact, that environment can reflect in various ways, as is the current case with pandemic”, he says.

In 1989, in the Kosovo Assembly, contrary to the will of citizens, the 1974 Constitution was changed, with which Kosovo's autonomy in the Yugoslav Federation was destroyed, leaving Kosovo as an integral part of Serbia. During this period, the majority of Albanian workers walked away violently from their jobs by the then regime of Serbia.

Corca: Government Help Needed for Survival

Anita Corca says that any subsidies from Kosovo institutions are needed for the survival of open businesses in the pandemic period.

Because we can't even cover expenses for local maintenance and maintenance. Not having my family to help me financially, just an infusion gives, just the situation is alarming”, she points out.

Respecting the physical distance at a local in Pristina, as a safeguard against the spread of the Coronobrus.

How much can open businesses in the pandemic survive on the market?

Open businesses in pandemic time, if they do not provide support from institutions, have difficulty enduring competition and the pandemic crisis, says Agim Sahin.

“Registered businesses will try to survive, but some may end up the way many other businesses have ended up, unless the state supports them, and unless a more favourable credit climate is created in commercial banks and funds for various investments”, he said.

Anita Corca shows that she has applied to one of the calls for subvention of businesses by the Government of Kosovo, but says she has not benefited any material aid, since, as she says, “funds have been dedicated to businesses that have been opened before the pandemic”.

To help businesses that have suffered losses from the pandemic, the Government of Kosovo has allocated 222m euros under the Law for Economic Recovery. But, so far for the private sector, only 22m euros have been distributed.