Where is the most earned? In which sector is it worth opening a business?

2023-02-16 07:51:39Biznes SHKRUAR NGA REDAKSIA VOX
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With the increase in competition, the decline in purchasing power and the emigration of the population, profits for private business are becoming more and more difficult.

According to the Structural Survey of Enterprises, in 2021, profits in the economy were 258 billion ALL, or about 2.2 billion ALL. These profits were generated from an annual turnover (income from the sale of goods and services) of 2.78 trillion lek, or about 23 billion euros.

The rate of profit in the economy was 9.3%, which means that for 100 ALL of revenue, businesses generated an average of 9.3 ALL of profit.

Profit rates have increased significantly compared to the previous year, when all businesses suffered the consequences of pandemic restrictions.

Separated by sector, the rates of return have large differences.

Selling an apartment has a quick and high profit. The most profitable sector in the economy in 2021 was the "real estate" activity, with a record rate of 31.9%, up from 28.8% the previous year. This activity generated 14.8 billion ALL of income in 2021 (117 million euros) and profits of 37 million euros.


The second most profitable business in the country is that of "information services", with a rate of return of 25.1%.

"Professional services" are the other sector that generates high profits, also due to the fact that it is a mental job, that does not have many physical expenses. The profit rate in 2021 was 24.7%.

"Health and social work activities" follow the ranking, with a declared rate of 24.2%. this sector also recorded the highest increase in the rate of profit compared to 2019, by 10 percentage points, being the most profitable from the pandemic, due to the high interest in carrying out analyzes or the obligation to wear a tampon when traveling out.

"Accommodation business", which mainly includes hotels, has a return of 16.5%, while "Food service", or the activity of bars and restaurants, one of the most popular in the country, has an official return of 13.6%.

"Construction" declares an average profit rate of 11.3%.

According to INSTAT, out of 30 economic activities that are declared detailed, only five of them have a profit rate higher than 20%, of which only real estate has more than 30%.

Another 11 sectors gain between 10-20% per year.

14 sectors, or 46% of the total economic activities in the country, have rates lower than 10% (see chart: Rates of earnings by economic activities, 2021).

The clothing and leather-shoe industry, one of the main employers in the country, which has as a competitive advantage the low cost of labor had a rate of 8.5-8.9%.

Although the number of media, especially television ones, is growing, INSTAT data show that "Publications and program production activities" have a low profit rate of 7.2%, almost half compared to previous years.

With technological developments that have enabled many people to plan their own trips, travel agencies enjoy a minimum rate of return of 6.6% per year, while in 2020, when the country was in a pandemic, they turned out to be a loss.

"Telecommunications and program broadcasts" had a minimum rate of 0.3%, mainly related to the activity of telecommunications companies that, unlike the mid-2000s, when they had high profit rates, are now with minimal results, or with losses./Monitor

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