The color of money: green business practices in a transition economy

Despite Albania’s status as an official EU candidate country since 2014, progress in adopting the new paradigm of ‘sustainable entrepreneurship’ has been sluggish. This study surveys nearly 500 companies, primarily in Tirana, to examine the adoption of green business practices. Findings reveal low adoption rates, coupled with limited awareness and knowledge of the importance of sustainability. Among implemented green measures, minor environmental interventions, energy consumption assessments (driven by cost considerations), and pollution reduction initiatives are the most common. A linear probability model shows that companies with dedicated plans and budgets for sustainability are more likely to adopt green practices. Other influential factors include company size and perceptions of climate change and environmental issues. Larger corporations, with greater resources and capacity, are more active in green initiatives compared to micro, small, and medium-sized enterprises. However, the effect of these variables remains modest, highlighting the need for robust government oversight and intervention, as companies often struggle with self-regulation and monitoring.