Abstract: This study looks at how public interventions helps startups succeed in Albania. It focuses on technology growth and independent institution playing role. Drawing on a survey of 80 startups – both subsidized and unsubsidized – we applied k-means clustering, PCA and multiple regression to analyze policy, bureaucratic barriers, innovation and performance functioning. The results show that subsidized startups perform better on average (β = 0.359, p = 0.095), while innovation remains the strongest predictor of success (β = 0.381, p = 0.001). PCA revealed that innovation and success form correlated components, while bureaucratic barriers are a separate dimension. The findings suggest that only a potential impact is underestimated; their effectiveness depends on the innovative capacity of startups and a supportive institutional environment. This study provides the first empirical evidence on public financing of startups in Albania, starting from the policies of an entrepreneurial system in a developing economy.

Keywords: Entrepreneurship, Innovation, Policy, Public Subsidies, Startup Success

Pages: 425-434