Over 11 thousand businesses registered within the year, experts say the government is not reflecting on real turnover

Although the incumbent government said that there has been an increase in business registrations this year and that this is evidence of economic growth, economic experts do not think so, according to whom the trend of increasing registrations does not match turnover, while many businesses are registering only to escape the high cost of energy and not as a result of economic expansion.

Financial expert Kushtrim Ajvazi, in an interview with EO, said that nominal census statistics do not provide an accurate picture of the value added in the economy. He emphasized that, in addition to the registered number, the real turnover of businesses should be analyzed, which shows their economic impact.

"What interests us is how much value added this number of businesses is to the economy. If we take it as a nominal number, the increase in the number of businesses registered in ARBK is, perhaps, a number of about 13 thousand as is being reported by the end of the year that is planned to be. However, if we look at the annual report of ASK, it turns out that the number of businesses does not match the number of businesses in ARBK, in ATK and in the ASK report itself. This trend of business registration this year, if we analyze the first 9 months of this year, January-September 2025, January-September 2024, somewhere around 15.3 billion is the turnover of these reported businesses. Last year 14.3, which falls around one-sixth of a percent increase, this 6 percent increase in turnover we are talking about, the number of businesses is increasing, but the turnover as a whole is not increasing. It has increased only 6 percent "One hundred," he said.

He added that, considering inflation through September of 5.1 percent, real turnover growth is minimal. He warned that some businesses have used separate registrations to avoid market barriers, creating the illusion of real growth.

"When we take into account other data, that inflation this year until September was 5.1 percent, the real increase in turnover is not even 1 percent, and we do not have a real increase in business turnover, we have a nominal number of registered businesses and this is probably being reflected in something else. Businesses have seen that this year they have entered the electricity market illegally, forcedly, violently. Without any basic criteria. There are businesses where they want to divide the turnover into two, three, four businesses, normally as nominal numbers these three businesses are registered, but as turnover it is the same. Therefore, the registered number of businesses should not have been taken as a basis; to get a real statistic, the number of businesses that declare financial value in ATK should have been compared exactly, compared to last year with this one. Then we will have to see what the real impact of these businesses that have been registered is," he said.

Safeti Gërxhaliu, former president of the Chamber of Commerce, said that the issue of the number of registered businesses being presented by the executive is a manipulation during the election campaign and may give a false picture of the real economic situation.

"It means that we are in an election campaign and we will be faced with different statements from institutional representatives. The number of registered businesses is being manipulated, which is not so relevant because the economic substance is above all. Kosovo needs business sustainability; here we are talking about businesses that are registered or not, we are talking about those that are extinct, we are talking about registered businesses that are mostly in the trade sector that only accelerate the export of cash by Kosovo citizens and the import of goods. In 2025, a record will be reached that will be over 7 billion euros, and the fact that the greater the export of cash or the greater the import, we also import silent inflation, we should not be surprised by the fact that today essential products for citizens are more expensive than in EU countries and at the same time we have almost a freeze in wages, both in the private and public sectors," he said.

He mentioned three phenomena that affect the number of registered businesses: the creation of new companies from existing businesses for convenience, the registration of companies to avoid ERO's decision on energy prices, and the entry of new businesses into trade and IT.

"There are three phenomena in the number of registered businesses. First, many powerful businesses create or register other companies to facilitate doing business. Secondly, it is a phenomenon that we have more than 1300 companies in Kosovo that are affected by the ERO's decision to increase the price and to avoid that ranking that large businesses pay three or four times the price of the most expensive electricity, they register other businesses to be divided into departments or in a certain sector and to avoid this burden. And third, we have new businesses that enter more into trade and IT and they make this difference. But how is it possible to have growth, a total turnover of over 15 billion euros, which compared to 2024 is a minor percentage, and to have a 15 percent increase in the number of registered businesses as the government emphasizes," he said.

Acting Prime Minister Albin Kurti has said that during his governing mandate, the number of registered businesses has increased this year and that this is the highest increase than in any other year before the VV government.

"During this mandate, the number of new businesses registered has increased year after year and has been higher than in any other year before our government. An increase in businesses in a growing economy," Kurti writes.

Acting Minister of Finance, Hekuran Murati, wrote a few days ago that the number of new registered companies has already exceeded 11 thousand.

"The number of new registered enterprises has already exceeded 11 thousand, by the end of October, before the year is even over. According to the current trend, by the end of the year this figure is expected to exceed over 13 thousand businesses, which would be an all-time record. This is an indicator of the good health of the economy, which is constantly growing," he wrote.