Many authors define corruption in different ways. The broader definition of corruption is that of “abusing pushtetit public for personal gains, which distorts the distribution of resources by transferring them to the hands of an elite” (World Bank, 1997). Corruption prevents social and economic development by significantly increasing the inequality and poverty of a state (Hassan 2004), but its main negative impacts are seen in the poor performance of the public sector (Mauro, 1995; Tanzi 1998).
Indirectly, corruption reduces the state revenues, thus limiting the funds allocated for public services such as health, education, infrastructure (Shleifer and Vishny, 1993, Tanzi and Davoodi, 1997).
Driven by personal gains, senior public officials make decisions in opposition to the public’s interests that they should serve. If policy priorities will not be selected on the basis of development policies, but on the basis of personal benefits then the economic policy will be ineffective (Kaufman and Wei, 2000). The growth of bureaucracy and the failure of the institutions will lead to an increase in  the level of corruption in the lives of citizens and as well  an increase in the level of corruption regarding the business sector (North, 1990).
Many researchers have examined the various factors that affect corruption. These factors include how the judicial system, the size of the government, the degree of economic freedom, the salaries of government workers, the degree of religion, bureaucracy, education and prosperity, affect the lovel of corruption (Bardhan, 1997; Jain, 2001; Ackerman, 1999). Unfortunately these effects have been useless (Mehlkop, 2003). Micro level studies are often problematic in terms of corruption because corruption does not have a unit of measurement and observations are sufficiently difficult. As a result, officials who are corrupt have no incentive to point out their true behavior.
Corruption in the public sector is considered as the main obstacle in preventing the economic development of a country (Kaufmann, 1997). Studies and evidences have shown that the main areas effected by the corruption are economic growth, investment and well-being (Mauro, 1995). In reality, every state is under pressure from corruption, so the fight against corruption through reforms that a state undergoes is uninterrupted. In order to reduce corruption by reforming, at first bus be identified the causes and consequences that corruption leaves. 
Various economic treatments have emphasized the initiatives and the possible penalties against the corruptive acts that need to be undertaken (Becker, 1968). Anyhow there are three preconditions for identifying corruption. Firstly, bureaucrats have unlimited power. Secondly, this power involves mainly economic aspects. Thirdly, the possibility of punishing these corruptive acts is very small (Jain, 2001).
If a country has a high level of development, high level of education and sufficient access to the media, then its corruption level is much lower compared to the other countries (Treisman, 2000). Also it must be mentioned that another factor indicating the spread of corruption is the historical aspect of the country (Treisman, 2000).
Nowdays, the determinants of corruption identified by many authors are: the size of the government (Elliot 1997, LaPalombara 1994, Montinola and Jackman 2002), democracy, (Amudsen 1999, Lipset and Salman Lenz 2000, Sung 2004, Treisman 2000, Paldam 1998, Ades Di Tella 1997, Brunetti and Weder 1998, Haris-White and Kulh 1996, Goldsmith 1999), income distribution and poverty (Gupta, Davoodi and Terme 1998, Husted 1999, Paldam 2002, (Rijckeghem and Weder 1997, Treisman 2000, Rauch and Evans 2000, Tanzi 1998, La Porta et al., 1998), (Rijckeghem and Weder 1997, Treisman 2000, Rauch and Evans 2000, Tanzi 1998, La Porta 1998), inflation (Braun and Di Tella 2004, Paldam 2002, Al-Marhubi 2000, Getz and Volkema 2001), economic freedom (Paldam 2002, La Polambara 1994, Goel and Nelson, 2005), political stability, (Leite et al. 1999, Treisman 2000 (Broadway and Recanatini 1999, Gerring and Thacker 2005), as well as economic competitiveness, (Shlefer and Vishny 1993, Ades (1994), Persson and Tabellini 2000), ethnic diversity (Mauro 1995, Treisman 2000, Easterly and Levine 1996), government regulations, (Broadman and Recanatini 1999, Gerring and Thacker 2005), and economic competitiveness (Shlefer and Vishny 1993, Ades and Di Tella 1997).
Numerous studies have also shown that corruption has many negative consequences in general for entrepreneurship and businesses (Kaufmann, 2000; Sekkat, 2005). Considering Albania with a high level of corruption, the cost of doing business is steadily increasing regarding the resources needed to cope with all the risks and costs.
Corruptive acts include bribery, patronage, nepotism, and fraud (Klitgaard, 1998; Amundsen, 1999). Corruption is also perceived as the main indicator in preventing investment in a particular region (Budak, 2006).
Since corruption is highly involved in the business areas, it exists an indicator called doing Business, which measures the performance of states from the perspective of business and its progress. This indicator consists of several variables that give their results at the end of each year. The outcomes from this indicator are related to the reforms that a government has undertaken to develop its businesses and the benefits from these reforms. These variables affect all business cycles, start-ups, find a localization, financing, various barriers, and daily activity. 
In the latest Doing Business report, 2013 Albania ranked 90 out of 189 participating countries in this analysis. The method used in order to gain this analyze is through surveys to small and medium enterprises. The results gathered in the end are determined on a per cent basis in order to show a country’s progress compared to the previous year.
Business regulations are crucial when it comes to the development of the private business sector since it is has a high importance and impact to the overall development of the country. Proper business regulations and relevant institutions, constitute the health of an economy.