Business sustainability in Albania: Challenges and Opportunities. MBA. Ada Kertusha (PhD Student)

Transcription

1 Business sustainability in Albania: Challenges and Opportunities MBA. Ada Kertusha (PhD Student)

2 Concept of sustainable development Economic Issues Sustainable Development Environmental Issues Social/political Issues

3 Albania is a small country with lower middle incomes. During almost 18 years of transition from a communist regime towards a free market economy, Albania has achieved and sustained strong economic growth, while containing inflation almost every year.

4 Economic Environment Changing from industry and agriculture to construction and services Economic reforms have established democratic institutions Key Economic Concerns in Albania Migration rate has always been very high.

5 Economic Environment The main growth during the recent years has been in construction State enterprises are privatized, helping so the private sector to grow Key Economic Concerns in Albania The main weakness of Albania is the large current account deficits

6 Economic Environment Large inflows of current transfers & positive service balances have helped balancing the trade deficits It is inevitable the decline of growth rates during global crisis Key Economic Concerns in Albania SME-s encompass a diverse set of organizations in both manufacturing and service sectors

7 SME-s are worthy of attention as they represent a significant share of the business sector economy. Collectively small business represents almost 90 % of Albania s business population by employment. Small businesses play a significant role in a county s wealth and have the potential to make a significant contribution to a country s sustainable industry.

8 Environmental Issues Conservation Of Resources Ecotourism Factors Affecting the Natural Environment Recycle and Reduce Waste

9 While, small businesses in Albania support environmental initiatives, they also have fewer employees, and less time and money for research and so many SME managers still find it difficult to spend time on environmental initiatives, despite opportunities and incentives to do so. Small business managers reported that they are generally interested in addressing environmental issues.

10 Clean production can be considered as a mean to achieve sustainability. It is the continuous application of an integrated, preventive environmental strategy applied to processes, products and services to increase overall efficiency and reduce risks to humans and the environment. In Albania, various programs have evolved that have a less formal environmental management system component. Albanian enterprises are small with a local market, so often prefer investing in such programs, which are often simpler and cheaper than an environmental management system.

11 Some of the barriers to integrating cleaner production in Albania are person power, money, time, lack of senior management commitment followed by a prohibitive company core culture. To achieve greater progress on the pathway to sustainability, small enterprises can not be expected to act in isolation. Three key facets of society; governments, big business and consumers, can play significant roles influencing the adoption of tools, such as environmental management systems and cleaner production strategies which help to achieve sustainability.

12 Consumers play an important role in driving environmental change among business. If consumer demand is inadequate to impose sustainability requirements on businesses then very little effort will be made by these businesses to change. Consumer education on environmental sustainability of products could help business build in additional environmental costs to the products and services they generate.

13 Businesses have a tremendous influence on those that supply to them. Big business can partner with others such as governments or local authorities to facilitate the development of EMS with a cleaner production focus in several suppliers simultaneously. These types of networks often reduce implementation costs while using social marketing techniques to keep businesses motivated to participate.

14 Demographic Trends Changing Age Structure Population is getting older Changing Family Structure Marrying later, fewer children, working women, and nonfamily households Geographic Shifts Moving to the the capital city Increased Education Increased college attendance and white-collar workers

15 Political Environment Includes Laws, Government Agencies, Etc. that Influence & Limit Enterprises in a Given Society Weak governance Undeveloped infrastructure Low rates of foreign investments and exports

16 Conclusions 1. There are a number of strategies to catalyze sustainability for small business. 2. By integrating cleaner production and environmental management systems, small businesses can make progress to sustainability. 3. The steps to sustainability, ranging from product improvement through to system innovation, are time consuming, long and complex.

17 Conclusions 4. Government at the country, provincial and municipal level should improve public policy initiatives and programs to encourage uptake of EMS by businesses in Albania. 5. Also, public agencies should do their utmost to encourage more small enterprises to make more use of environmental management systems.

18 Conclusions 6. Business associations and chambers of commerce should play a lead role in fostering the evolution of sustainable development indicators. Indicators help raise awareness, inform decision-making and measure progress towards sustainability. 7. Cleaner production strategies are being implemented by those enterprises that aren t indicating a resounding commitment to cleaner production.

19 Conclusions 8. Formally linking cleaner production within these types of systems will catalyze a more aggressive approach to environmental sustainability. 9. For a sustainability management system to become reality it must be built in a certain framework.

20 Conclusions 10. As a first step towards a sustainability management system, a business would have to alter the key EMS components including policy, identification of activities, services and products that impact on sustainability, how objectives and targets as well as programs are set. These components would need to capture social and economic issues.

21 Conclusions 11. Businesses in Albania are making slow but steady progress on the pathway to sustainability. 12. These businesses are integrating cleaner production strategies into their environmental management system and achieving significant economic and environmental benefits as well as making some in-roads on the social component of the sustainability framework.

22 Conclusions 13. Finally, the challenges faced by small enterprises on the path to sustainability are complex. Cleaner production implementation within an environmental management system provides a tool for achieving sustainability and breaking down this complexity.

23 THANK YOU!!!