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About 700 businesses are closed in the first quarter of this year in Kosovo. Import growth, expensive electricity, lack of labor force, unfair competition, and the lack of a business protection law are considered some of the factors that affected the closure of hundreds of businesses.

Although there are also a number of new businesses registered in this period, it is estimated that this number of extinction should be an alarming signal to the country's government and institutions.

With business bankruptcy, many jobs are being eliminated, resulting in increasing the poverty rate in the country.

Kosovo Chamber of Commerce and Industry Executive Director Deploy Ahmeti tells Kosovo that instead of closing, Kosovo needs the opening of new businesses and empowering existing ones, but facing numerous challenges, as he points out, is making the process difficult.

Ahmeti stresses that high labour costs, inflation, import dependence and increased electricity prices are among the main factors that are endangering business sustainability.

He added that fierce competition from imported products, price hikes and the lack of a law protecting local businesses are making their survival difficult.

Another serious problem, according to Ahmeti, besides the lack of workers, is the departure of experienced ones, which is seriously damaging the local market.

Any closure of businesses in Kosovo for any government, the institution should be alarming. Only this figure, despite being smaller than it is in 2024, is still a large figure... Seeing developments happening, the cost of labour, the different inflation that Kosovo is constantly getting because of the huge import that happens, the latest developments on the energy issue... all of these affect the risk of a large number of businesses operating... is constantly on the rise of our market dependence on imports and depends on the prices that are coming around”, Ahmeti says.

He stresses that another factor is the enormous competition from imported products.

And then, there's a lot of competition from products that come from import and it's impossible to survive at the prices that have been holding the market up to today, because today it's three times more expensive than it has ever been before... the overwhelming share of our businesses is seriously hit by the still running of their own workers, who have had a long work experience... it's a huge problem that Kosovo still doesn't have a law to protect its own businesses. There are businesses that have joined each other in the same event. A fierce race is being fought”, Ahmeti says.

From the Ministry of Industry, Intervention and Trade (MINT) say 698 businesses have closed in the first quarter of 2025. Meanwhile, in the same period last year, the number of business closures was 833, though compared to the respective period of the 2024 year, this year has a decline in the number of businesses that have disappeared.

“In the first six-month of 2025, 698 businesses have been extinguished or closed, as long as, for the same period of time, 833 businesses have died down in 2024. For the time period, January, December 2024 has shut down or closed 1633 businesses”, MINT's response sent to KosovaPress says.

Economics expert Adem Qorrolli says closing businesses in recent years is not only happening in seasonal businesses, as it used to be, but, according to him, is affecting large companies with many workers.

As Qorroll notes, the main factors are high costs from import, institutional spending and pressures from public debt.

He says the cost of electricity and other services resulting from import are significantly weighing the situation.

Even Qorrolle points out that the lack of labor and inability to operate with reduced staff are increasing uncertainty, while larger companies are facing the greatest risk of closure.

And what's unfortunate and is being seen in statistical data, that earlier business closures have been the seasonal conclusion of seasonal businesses. Example, artisans, autolars or small businesses. And in the last three years (last) the number of businesses that are closing are the number of workers, where the main causes are the high costs coming from import, high institutional costs and public pressures or debts that businesses have not yet achieved that high education ... And a major damage that is being done to businesses are unpredictable institutional costs such as currents, water and other things coming from import”, says Qor.

Qorroll points out that what is being reflected to the maximum is also the workforce, where businesses cannot work minus 10 workers or organisational 10 workers.

The working campaign today is showing itself and it's giving a little bit of uncertainty, but the ones that are most in trouble are the big corporations that are actually closing up, or are close to closing. Energy pressure or energy bills are also taking the last step to close them”, says Qorroll.

In addition to responding to the closure of businesses, MINT says that over 6 thousand and 600 new businesses have opened between January and June of this year. See this higher than the same period last year.

A total of 6065 new businesses have been opened on June 2024. January (June 2025) total of 6642 new businesses have been opened, said MINT's response.

Regarding the profile of new businesses, Qërim Ahmeti executive director of the DHTIK says the majority of new businesses that have opened in recent years are maids or businessmen, but not producers.

He points out that the unwillingness to open production businesses is preventing domestic production, job creation and economic empowerment in the country.

“The problem with us in general in recent years, the majority of new businesses that have opened are servants or businesses, but they are not productive businesses. We crack there. Because the business is very easy, they bring the product ready and they sell it, the services are also available... the problem is there is that there is no willingness to open businesses that are producers, which also bring in the growth of local product productions and a rise in jobs and give a great economic power to our country...”, Ahmeti says.

Meanwhile, economics expert Adem Qorrolli says the new businesses are opening mainly with 5 to 10 workers who, according to him, offer no security for long-term development.

According to him, when these businesses try to expand, they are facing major challenges that could prevent them from surviving.

“Bineses of offerings or services, such as accounting with foreign and various insurance agreements, where institutions have already raised the requirements for these provisions. It is the ones that are opening up and offering no security because the largest number of them are up to five workers. That's alarming, because companies from 200 to 250 workers are closing, but they're opening up 5-10 workers. This does not define that trade or industry is developing in Kosovo, but provides an alarming sign that Kosovo market is a good market for small businesses. But when you think of its expansion, then you're going to face big challenges”, points to Qorroll.

Kosova Prees has asked And for the nature of the businesses that are closed and those that are open, there is no answer.

However, in 2024 over 1,000 and 600 businesses have been closed. Meanwhile, in 2023 nearly 1,000 and 500 businesses were bankrupt

While, days ago, incumbent Finance Minister Iron Murati wrote on Facebook that the number of new businesses has scored a new record in the past year. According to Murati, 12,051 new businesses were registered in 2024, which according to him constitutes a 5.6% increase compared to the previous year.

The good news is that the year 2025 is expected to surpass 2024 with a new record. By June 2025, 6,642 businesses have registered, and at this rate the figure for the entire year is expected to exceed 13 thousand for new registered businesses, he wrote./Periscopi/