Start-Ups: Importance and Role in the Economy

Abstract

This paper examines the importance and the role that start-ups play in securing the future economic growth and development of a society, thereby concluding that Albania must do a lot more to afford start-ups the right and favorable environment for their flourishment. Start-ups are a relatively late comer to the Albania’s innovation and business scene, and this definitely has a bearing on its development endeavors. As of today, Albania has about 88 start-ups per 1 million inhabitants, whereas the European Union average is of 250 start-ups per 1 million inhabitants. The paper takes a close look at the theoretical foundation and functioning of start-ups by referring to the most prominent studies conducted worldwide, as well as to their importance and role in generating economic growth and development by looking at various indicators, such as enticing industry disruptions, spurring innovation, encouraging investments, enhancing competition, offering new products and services, growing markets, job creation, etc. Received: 2 June 2024 / Accepted: 25 July 2024 / Published: 29 July 2024