Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country
Last Published: 2/26/2019
  • Market size:  Kosovo’s population – officially 1.8 million people based on the 2011 census– may present a challenge to investment in industries requiring a substantial economy of scale to realize profitability.  
  • Weak judicial system:  In addition to a significant backlog, Kosovo’s judicial system lacks the competency and business orientation to enforce commercial contracts.  The Kosovo Bar Association includes very few firms capable of providing legal services at the level expected in more developed markets.
  • Corruption:   Perceived and actual corruption is widespread in Kosovo.  Senior-level public officials have been accused of bribery, racketeering, and other forms of corruption.  Widespread corruption reflects a “cost-of-doing business” mentality prevalent in many parts of the region.  Anti-corruption efforts suffer from a lack of cohesion, of forceful action, and of follow-through measures, including prosecution. 
  • Public procurement:  The government lacks the capacity to successfully manage large-scale public-sector transactions on its own.  The GoK contracts international firms as transaction advisors, which has resulted at times in conflicts of interest and delays.  Local and regional distributors have consistently complained about irregularities in public tenders at the national and municipal levels.  Most large contracts contain an Alternative Dispute Resolution clause.
  • Weak IPR enforcement:  Despite having EU-compliant legislation on IPR protection, there is a general shortage of awareness.  Legal professionals often lack the necessary expertise to deal with IPR cases.  This situation is an impediment to franchise growth in the Kosovo market.
  • Workforce:  Kosovo’s young, educated, and multi-lingual workforce is often mismatched with the skill sets required by employers, increasing training costs.

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