Linking Rural Entrepreneurs and Diaspora in Albania and Bosnia-Herzegovina

This report presents the results of a research project, conducted in the framework of the RRPP programme in the period January 2012-June 2013, in Albania and Bosnia-Herzegovina. The project was consisted of three main stages. The results of each stage are presented in separate chapters. In the first stage, econometric analysis of the models of factors determining success of rural entrepreneurs, in order to identify main obstacles to entrepreneurial activities in rural areas in Bosnia-Herzegovina and Albania, was conducted. The second stage was the descriptive statistical analysis of diaspora from these two countries and its possible engagements in economic development of their home countries. In the third stage, review of possible solutions for engaging diaspora in reducing obstacles to rural entrepreneurship, identified in the first stage, developed through selection of best practices from the world and discussion of possible alternatives with key stakeholders in the two countries, are presneted. The main results of the research is a list of possible solutions, agreed among stakeholders, that can be used by the governments in Bosnia-Herzegovina and Albania in order to engage diaspora for rural development of these two countries. In addition, findings from the two separate research activities, one of factors affecting success of rural businesses and another about potential of diaspora, provide some useful insights for all researcher and practitioners working on these two topics.

This research report offers an analysis of the barriers and opportunities experienced by rural entrepreneurs through engaging diasporas in Albania and BiH. The report is a direct result from the RRPP research project Linking Rural Entrepreneurs and Diaspora in Albania and Bosnia-Herzegovina implemented by the Centre for Economic Development and Research (CEDAR) of Bosnia and Herzegovina, in cooperation with the Albanian Centre for Social-Economic Research (ACSER) of Albania.

The report first provides econometric analyses of models addressing factors determinant of rural entrepreneurial success, leading to the identification of primary obstacles to entrepreneurial activities in rural BiH and Albania. Evaluating the rural entrepreneurship survey's results reveal these obstacles to be related to financial, institutional and infrastructural constraints. Each of these factors impact rural success in similar ways; therefore all three must be solved simultaneously without prioritizing one over another. The results also demonstrate that rural entrepreneurs expect more support from local rather than state level government.

The second part of the report provides a descriptive statistical analysis of BiH and Albania’s diasporas and their potential engagements in the economic development of their home countries. The results suggest that, in case of both diasporas, most respondents initially planned to stay only temporarily in their host countries, returning to their home countries after some time. Although their initial plans were in favour of temporarily migration, their current plans define their original actions as steps toward emigration. This shift in migration types is more pronounced in the case of Albanian migrants. Bosnian migrants remained uncertain of their migratory plans at the time of the research. Overall, no clear patterns emerge for predicting future migration strategies. A large number of migrants from both countries are unable to determine when to return and exactly where they will be settling down.

The report’s third and final part contains a review of possible solutions for engaging diaspora by reducing the obstacles to rural entrepreneurship identified in this report. Solutions were developed by selecting some of the best practices taken from around the world, coupled with vibrant discussions on alternative resolutions with key stakeholders in the two countries. In summation, the research results suggest that remittances, investments and skill transfers will be the main areas of intervention for linking of rural entrepreneurs and diaspora in Albania and BiH.

Document type
  • Report


Publication Year


Nermin Oruc, Selma Delalic, and Lejla Kamenjas - CEDAR Edlira Narazani, Isilda Mara and Teuta Saka - ACSER
Geographical focus
  • Albania
  • Bosnia and Herzegovina
Scientifc field / Thematic focus
  • Cross-thematic/Interdisciplinary
  • Social Sciences

Entry created by Philipp Brugner on February 25, 2014
Modified on February 25, 2014