Albanian Fills the Shoes of a Successful Exporter

Donika Mici is one of many entrepreneurs at the Presidential Summit on Entrepreneurship from countries with sizeable Muslim populations, April 26-27. Mici is founder and chief executive of DoniAnna, a shoe company based in Tirana, Albania.

Bogdan Pukszta is executive director of the Polish American Chamber of Commerce in Chicago.

Donika Mici

Donika Mici

Donika Mici:
When communism collapsed in Albania, the economic conditions were as bad as business opportunities were great. State-owned companies were going bankrupt, workers were losing their jobs, credit was unavailable, market regulations were still taking shape, and corruption and incompetence in the government were endemic. At the same time shop shelves were empty, labor was extremely cheap and competition was nonexistent.

When I took over a failing, state-owned shoe company 1992, I knew I had to be tough to survive in such an environment. I was one of the first Albanians, and certainly the first woman, to set up a private business.

As an economist, I knew that only exporting made economic sense at that time. However, Albania had been cut off from the outside world. Its telecommunications infrastructure was so outdated that identifying and getting in touch with potential buyers was a formidable challenge.

By hook or by crook, I managed to find and persuade Italian buyers, that, yes, Albania still existed and, believe me, Albanians could make quality shoes cheaply. My company, DoniAnna, hired 120 workers (including former engineers, professors and doctors) and started making shoes. We hired Italian specialists to train our employees and improve manufacturing operations so that we could meet international standards. Within a few years, DoniAnna was exporting hundreds of thousands pairs of shoes a year.

Most Albanian competitors manufacture at least part of their shoes in Italy to gain the cachet of a “Made in Italy” label. But I wanted to prove that a “Made in Albania” label isn’t an impediment to international success. Last year, I launched my own brand of shoes and today Macy’s, Bata, Aldo and Kenneth Cole are among my clients. With more than $20 million in sales in the first half of 2009 and 1,400 employees, DoniAnna is among the largest exporters in Albania.

I strongly believe in, and am proud of, the business I’ve created and opportunities it has brought to others, particularly in poor parts of Tirana, where my manufacturing operations are located. I look ahead with a desire to strengthen my business and improve the product.

Bogdan Pukszta

Bogdan Pukszta

Bogdan Pukszta:
Donika’s story is beautiful, optimistic and encouraging. It is also familiar to me.

I met similar women in Poland about 20 years ago now, when the country was transitioning from state control to free markets and democracy. Although conditions in Poland and Albania at the end of the communist eras were quite different, entrepreneurs in both countries faced tremendous challenges, some of which Donika mentions. These entrepreneurs were able to overcome challenges thanks to private initiative, hard work, energy, creativity and street smarts.

Not all successful businesspeople from the former communist bloc have been able to break into international markets as Donika did. She must have special talents, which are appreciated by marketers and buyers around the world. But stories of successful businesspeople whose skills were dormant or suppressed by communism can be found in all countries that have chosen privatization and market-based systems. And one can only hope that some others won’t wait long to choose similar reforms and give a chance to their entrepreneurial people.

There is something about human beings everywhere, that if there is room for private ownership and free enterprise, it’s only a matter of time for success stories to emerge and for economic growth to occur.

I am a bit concerned though – as someone who now lives in the USA and cares about economic growth here – that as more countries decide to transition to capitalism and democracy, fewer people from those countries may choose to come here to realize their dreams. For centuries, such immigrants have boosted the workforce and economy of the USA.

On the other hand, as market forces around the world strengthen, America will gain more investment, business and trade opportunities overseas.

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