Author: SME Chamber

After improving in January and February, the Economic Sentiment Indicator (ESI) decreased in March by 0.8 points in the EU and by a marginal 0.1 points in the euro area, to 93.2 and 94.4, respectively. The decline was mainly driven by decreasing confidence in the industry and construction sectors. By contrast, confidence increased among consumers and in the services and retail trade sectors.

Among the largest Member States, the UK (-2.5) reported the biggest decrease in sentiment, followed by Germany (-2.4), the Netherlands (-1.3) and Spain (-1.1). By contrast, sentiment improved in Italy (+3.5), Poland (+2.2) and France (+2.0). The ESI is above its long-term average only in Germany. In Malta confidenced increased by 0.6.

Confidence in industry worsened markedly in both the EU (-1.8) and the euro area (-1.5).

In both regions, managers' assessment of their companies' past production and current level of order books deteriorated. At the EU level, also the current assessment of stocks of finished products and export order books deteriorated.

However, managers' production expectations remained broadly stable. In the euro area, production expectations declined, but managers' current assessment of export order books improved slightly, and that of stocks was broadly stable. Confidence in services improved in both the EU (+0.8) and the euro area (+0.6), thanks to more positive assessments of the past business situation and past demand, while demand expectations decreased slightly. Confidence in retail trade also improved in the euro area (+1.8) and -to a lesser extent -the EU (+0.5).

By contrast, confidence in construction worsened in both the EU (-0.8) and the euro area (-1.9), mainly due to a worsening of managers' employment expectations in that sector.

In the EU, managers revised their employment plans upwards in all business sectors except construction. At the same time, expected selling prices were also revised up in the industry and services sectors.

Confidence among consumers improved by 1.3 points in the EU and by 0.6 points in the euro area, mainly on the back of a strong increase in consumers' expectations about the general economic situation and an easing of unemployment fears in both regions. Consumers' assessment of their own financial situation improved slightly in the euro-area, but remained unchanged in the EU. Consumers' saving expectations declined in both areas. Confidence in financial services – not included in the ESI – remained broadly stable in the EU (+0.1) and declined in the euro area (-0.8), on the back of managers' more negative assessment of recent developments in business situation and demand. At the same time, managers' expectations about demand for their companies' services improved markedly.

Almost a thousand micro enterprises including start-up companies and self-employed which between them invested a total of €15.7 million and generated more than 235 new jobs have already applied for the MicroInvest schemes, which assists them to innovate, expand and develop their operations.

The scheme, which was originally envisaged to last until the end of this month, has been extended for another year to cover projects carried out in 2012 in response to an overwhelming demand which saw more than 936 applications being submitted, thereby giving even more businesses the opportunity to benefit from the assistance.

Nonetheless, those enterprises who submit their application by the end of March would be ensuring that their application is processed in time for them to benefit from the assistance during the course of
this year. Approved applications will be given a Certificate that would have to be presented to the Inland Revenue Department with the Tax Return.

Through the MicroInvest scheme administered by Malta Enterprise, businesses can get 40 per cent of the investment to improve their own operations in the form of tax credits, up to a maximum of €25,000.

At 60 per cent of the eligible expenses, the benefit is even higher for Gozitan businesses in view of their double insularity, which often places them at a disadvantage. This additional bonus has encouraged even more Gozitan enterprises to apply for this scheme, and indeed around 30 per cent of those who benefited from the MicroInvest scheme operate in Gozo.

Overall, more than €4.7m in tax credits have already been approved, covering a vast range of investments that businesses have made to improve their day-to-day operations and enhance their growth possibilities.

Eligible expenses include furbishing and upgrading of business premises, machinery and technologies to improve operations and to save or generate energy, as well as investments to ensure compliance with regulations. Also covered are wage costs for new jobs created, as well as the cost for one commercial vehicle as long as such vehicle is involved in the transport of goods as specified in the incentive guidelines.

Open to all micro enterprises that employ less than 10 workers and which have an annual turnover under €2 million, including start-ups and self-employed, the scheme is part of the support provided to SMEs in recognition of their vital role for the economy.

The efforts aimed at strengthening the business environment to ensure it is conducive to job and wealth creation have also led to the creation of Business First, which makes life easier for businesses and particularly SMEs by gathering over 50 Government services under one roof and thus avoiding a lot of unnecessary running around.
Through Business First, which is located at Gwardamangia, businesses will also be given professional guidance and assisted to apply for a myriad of schemes, including the MicroInvest scheme. Further information can be obtained by calling Business First on 144 or via email on , or by visiting http://www.maltaenterprise.com/News_Details.aspx?ID=400&utm_source=Malta+Enterprise+Newsletter&utm_campaign=392fa0c10a-thincMalta_Newsletter_02_2012&utm_medium=email.

Why did you become an entrepreneur? I believe that I came to this position due to a good reputation with clients in our line of business. – How have you come to chose your line of business?

Actually it is a family run business

Where did you go on your last holiday?

My Last visit was to London as I was invited to a wedding and the

thing I liked most was that while I was there I went to the theatre.

What is your earliest memory?

I believe it goes back to when I was almost 5 years of age.

If you could chose to be someone famous who would you be?

A Formula 1 racing driver.

The Malta Competition and Consumer Affairs Authority (MCCAA) launched a TRUST MARK scheme related to good business practice between entrepreneur/service provider and the consumer. This scheme is envisaged to enhance the trust between the two and therefore enable the consumer to purchase products and services with much greater confidence.

The aim of the Trust Mark scheme is to promote and safeguard consumer interests by helping them identifying those businesses/service providers which promise to abide by a code of conduct where the interest of the consumer is safeguarded.

Service providers subscribing to this scheme will have to endorse that they will conform to the local regulations and also that they will be complying with the contents of a code of ethics which will be an important part of the scheme.

The scheme will not involve any additional documentation and will not require any great effort to subscribe. Approved service providers will have their details included in the MCCAA website. On the other hand, once those approved are found to be breaching the salient points of this code of ethics will be shown on the defaults section and get their certificates withdrawn.

The code covers the whole service/product acquisition cycle, which consist of:

1. Enticing – the promotional and advertising stage

2. Negotiating – the pre-procurement stage

3. Purchasing – procurement stage

4. After-sales-post procurement stage

The scheme is open to all those who come in contact with people and it is very simple to follow. The commitment by those signing-up to participate in the scheme is that they declare that they will adhere to the following Code of Conduct.

Code of Conduct

1. Promoting a customer-friendly relationship.

2. Conforming to all relevant regulations.

3. Doing my best to ensure that the premises are accessible and safe.

4. Advertising and providing information in a way that does not mislead potential customers.

5. Trying to understand customer requirements and advise accordingly.

6. Indicating/quoting prices that are all-inclusive.

7. Adhering to agreed commitments.

8. Ensuring that all complaints are dealt with in a timely manner.

9. Avoiding if possible that disputes are referred to the Consumer Claims Tribunal by opting for resolution through mediation.

10. Providing an adequate after-sales customer service.

For further information kindly email on the following address and we will send you the necessary information and application form.

Malta Competition and Consumer Affairs Authority

Mizzi House

National Road

Blata L-Bajda

Tel: +356 23952200

Malta Enterprise has been appointed as the National Contact Point for the European Commission's Competitiveness and Innovation Programme (CIP), which aims to encourage the competitiveness of European enterprises and particularly small and medium-sized enterprises.

With a budget of €3.3 billion and running from 2007 to 2013, the CIP supports innovation activities, provides better access to finance and delivers business support services in the regions participating in the programme. 

Additionally, it encourages a better take-up and use of ICT, helps to develop the information society, and also promotes the increased use of renewable energies and energy efficiency.

Previously under MIMCOL's responsibility, the CIP's National Contact Point in Malta has now moved to Malta Enterprise, enabling the Corporation to offer an even more comprehensive range of support, services and schemes to facilitate the successful operation and growth of local enterprises.

Amongst others, Malta Enterprise already runs the local offices for other European programmes or networks, such as the Enterprise Europe Network, EUREKA and Eurostars, besides adminis

tering a number of schemes for businesses and industries co-funded through the European Regional Development Fund (ERDF) for which a Fourth Call is currently open.

The CIP's National Contact Point's main role is to promote and disseminate information on CIP and its funding opportunities, encourage and guide the participation of Maltese entities under specific calls for proposals and other networking initiatives, and offering partner search support.

More than €3.1 million are estimated to have been budgeted for co-funding for Maltese stakeholders – including public bodies, businesses and NGOs – through the previous calls of the CIP's three operational programmes, namely the Entrepreneurship and Innovation Programme (EIP), the Information Communication Technologies Policy Support Programme (ICT-PSP), and the Intelligent Energy Europe Programme (IEE).

The EIP focuses on improving access to finance for SMEs through specific instruments, and provides business services through the Enterprise Europe Network. It supports innovation

policy and transnational networking; eco-innovation pilot and market replication projects; and supports policymaking through contracts and grants for analytical work and awareness-raising.

The ICT-PSP provides funding for pilot actions by both public and private organisations for ICT-based services in various areas such as health, digital libraries, improved public services,

energy efficiency and multilingual web evolution. It also supports networking actions and monitoring of the Information Society.

The IEE supports projects and best practices in intelligent energy, energy efficiency and best use of renewable energy

sources. The annual calls for the three operational programmes are currently open.

CIP will eventually give way to COSME, a new programme for the competitiveness of enterprises and SMEs which will run from 2014 to 2020 with a foreseen budget of €2.5 billion. The new programme will take forward and add to the initiatives under the Entrepreneurship and Innovation segment of CIP, facilitating access to finance, encouraging entrepreneurship and competitiveness, and supporting SME internationalisation.

Further information may be obtained from www.cipmalta.com or by contacting Malta Enterprise on 2542 0000.

A Business Breakfast is being organised on 11th April at Le Meridien in St Julians. The topic will be the Executive Training Programme and EU Gateway Programme designed to assist companies who wish to do business with the Japanese and South Korean markets.  These are markets which have great potential but are somewhat difficult to access due to logistics and cultural differences.

The Executive Training Programme provides up to 45-week training course in Japan or Korea, including an internship in a local company that will enhance your business prospects in these countries.

The EU Gateway Programme organises and funds Business Missions in high technology and design sectors for European companies to develop their business in Japan and Korea by offering financial and logistical support, strategic preparation and a tailored search for business contacts.

Date: 11^th April 2012

Time: 8:30hrs

Venue: Le Meridien Hotel, St.Julians

The Info session shall be delivered by Mr. Alvaro Biel Turon of the Madrid Office in charge of said programmes.

Further information about the programmes may be accessed here:

http://www.eu-gateway.eu/go.php?nID=22&page=Home

http://www.euetp.eu/

Interested parties are to contact Malta Enterprise on or tel: 25423418

Take the opportunity and meet them  – A business delegation from Austria will be visiting Malta with the aim of doing business with Maltese companies to export their products and partnership agreements. The business to business meetings will take place on the 25th April. The sectors involved will be:

 

Environmental Technology, Energy Industry, Renewable Energy:

– Boiler and energy technology – Systems engineering and food technology

– Solid waste management – Solar panels

– Wind turbines – Gas fueled reciprocating engines

– packages generator sets – cogeneration units for the efficient generation of power and heat

– Water control systems – Termal solar systems

– Flat and tubular collectors – Hot water storage tanks for heat management

– Block heat and power plants – Photovoltaic systems

– Thermal solar systems – Gas alarm devices

– Water and waste water industry- measurement, inspection, cleaning and disinfection

– Probes, transmitters and accessories for level and pressure management, temperature management

Hotel Equipment

– Bathroom dispensers and supplies

– Supplies for bedrooms (quilts, pillows, underbedding etc…)

ICT

– Air Traffic Management – Videoconference systems

– e-Government, e-Mobility, security – LED lumination

– Application software – Booking and payment system

– Prepaid cards – Electronic file systems

Consulting and Advertising

– Advertising – Real estate services and property management

– Employee training and coaching – International business etiquette

Machinery & Equipment manufacturing

– Process equipment construction for the food industry

Wood and packaging

– Pallets – Packaging solutions made of timber

Interested in any of the above? Contact Abigail Mamo at GRTU on or 21 232 881

 

On the 22nd March GRTU's Social Affairs representative Michael Galea participated in EuroCommerce's European Social Dialogue meeting. EuroCommerce represents the retail, wholesale and International trade sectors in Europe and represents GRTU in Brussels.

Trade Union strategy- targeting employers

European commerce must focus on choosing the right skills that are in demand. The organisation plays an important role in job creation, internships and apprenticeship. Internships and apprenticeship are meant to provide young people with the opportunity to gain work experience or use formally acquired skills in a practical setting. In order to explore the quality of internships offered in Europe today, the European Youth Forum has conducted a research in the form of a survey targeting current and former interns.

Call for a European Action Plan for Retail (REAP)

The role that retail is playing in the creation of jobs was emphasised. European commerce faces a number of barriers especially in central and eastern European countries.

The key challenges addressed by the EU Action Plan on Sustainable Consumption and Production (SCP) are to improve the overall environmental performance of products throughout their life-cycle, promote and stimulate the demand of better products and production technologies, and helping consumers to make better choices. The Plan recognises retailers' important contribution to sustainability and to influencing sustainable consumption through their own and supply chains operations, and consumer behaviour.

European retailers share the view that achieving sustainable consumption and production is a key challenge for the future. Retailers witness – on a daily basis – the changing demands of their customers, the constantly evolving needs for suitable and accurate information, the rapid introduction of new eco-products, and ever ‘greener' supply chain processes.

At the same time, retailers witness the challenges in converting consumers' general environmental awareness into purchasing decisions, in anticipating future consumer wishes without becoming divorced from current consumer demands and in greening their internal processes and procedures at an economically sound and efficient pace.

Within the parameters of fair and robust competition, taking forward the SCP and SIP Action Plan, European retailers voluntarily propose the Retailers' Environmental Action Programme. EuroCommerce is confident that REAP will soon be a reality. There are issues on international trade and employment. As a committee EuroCommerce has to be very precise, in terms of what it wants from the Commission in the coming years.

The action plan would not only help improve the recognition of the importance of retail in meeting the EU 2020 strategy targets for smarter and sustainable growth in Europe. It would also rest in the development of concrete immediate and longer term recommendations for action.

The retail associations ERRT, EuroCommerce, EuroCoop and UGAL urge for action to be taken immediately on the following priority areas:

Making the retail sector benefit from a fully functioning internal markefor goods, services and capital

Making the digital agenda a reality for businesses and consumers

Support employment, skills development and entrepreneurship in retail as an

Support expansion abroad

Social Dialogue

The EU is celebrating 20 years of Social Dialogue. Europe is currently

1. In the finalization and realization of the Single market

2. Engaged 5 countries where Social Dialogue is strong in organization of the 20^th anniversary celebrations.

3. EuroCommerce to lead in these celebrations

Social Dialogue between EuroCommerce (representing employers) and UNI-Europa Commerce (representing workers) was active continuously since 1983 and was officially recognised by the European Commission in 1990. In 1993, EuroCommerce and Euro-Fiet (now UNI-Europa) officially recognised each other as social partners within the meaning of Articles 3 and 4 of the Agreement on Social Policy. On 30 November 1998, following the reorganisation of the European social dialogue, the social partners agreed to establish a sectoral social dialogue committee.

The Social Partners for Commerce tackle employment and labour related issues through a large range of instruments such as statements, opinions, guidelines, framework agreements or concrete projects (vocational training material, studies and reports). Unions are using social media a lot, contrary to commerce.

Corporate Social Responsibility (CSR)

We have recently seen the first politic statement since 2006. A lot of initiatives are being started. Two key elements:

1. New definition of CSR

2. Agenda for action covering 8 different areas.

EuroCommerce has long been committed to CSR, as the commerce sector has an established tradition of initiating and developing a broad spectrum of responsible practices. In our view a voluntary approach is preferable, as it allows for creativity and enables companies to share ideas and experience on best practice.

The two main bodies involved in the formation and implementation of CSR policy are the European Multi-Stakeholder Forum, which is coordinated by the European Commission, and, on the business side, the European Alliance for CSR, which is a vital forum of exchange for companies and business associations.

CEEMET

CEEMET was created in 1962 under the name western union metal trades employers organization. In 2004 it was renamed CEEMET. The members are national employers' organizations and federations, representing 200,000 member companies across Europe, the vast majority of which are SMEs providing 13million direct jobs in the metal, engineering and technology based sectors. Together these companies make the largest industrial sector in Europe in terms of employment and added value.

CEEMET's mission is to represent, promote and defend the social policy-related interests of the employers in the metal, engineering and technology-based industries on the European level, working together with all stakeholders to create and maintain a sustainable and competitive environment for European industry.

CEEMET's core objectives are:

To promote the exchange of information among its members on all social issues which directly affect the interests of the metal, engineering and technology-based industries

To coordinate views and opinions on social policy and industrial relations issues of concern to the members, and organize and implement the initiatives and actions of the members at European level

To issue statements and position papers on matters of common interest

CEEMET and the European Metalworkers Federation began their dialogue informally in 2001. In January 2010 this sectoral social dialogue was formalised, with the European Commission recognizing CEEMET and the EMF as formal sectoral Social Partners. CEEMET believes that European-level sectoral social dialogue can contribute to improving the economic and business environment that supports the development of competitive and profitable companies, thus also helping to promote sustainable employment and conditions in the MET industries in Europe.

 

During his intervention at the EESC Economic and Monetary Union, Economic and Social Cohesion (ECO)Section at the discussion on the legislative proposals for laying down common provisions on the various regional, cohesion, agriculture and structural funds (ERDF, ESF, ECF, PSEI, EGTC, CF, EAFRD and EMFF) Mr Farrugia raised the following points:

Implement the Small Business Act and its principles "Think small fist" and "Only once";

Article 5 of the General regulation of the governance partnership is one of the keys to the success of cohesion policy. One should 1) guaranty the participation of economic and social partners and representatives of various categories of SMEs at all levels, particularly for operational programmes and partnership contracts; 2) ensure its implementation by Member States and the Regions.

Grant a margin of flexibility for regions to enable them to take action on specific target audiences in specific situations;

Give priority to long term and continuous development of all types of SMEs, irrespective of their market, including nearby markets, not only the competitiveness of innovative companies and internationalisation.

Measures to support mentoring and counselling, tangible and intangible investment, particularly in training and activities of intermediary organisations acting for different categories of SMEs;

The performance reserve is counterproductive if it encourages investment policy in infrastructures with immediate effect instead of growth policies based on more sustainable investments in human capital, the effect cannot be measured in the long run.

Administrative simplification: complete or specify the proposed measures 1) by drafting texts that require harmonised implementation and where managing authorities see no margin in the interpretation of these texts.

Interpretation, 2) more clearly defining the rules for inspection and audit, the criteria for applying the principle of proportionality as well as the rules of payment and payment delays.

Overall Mr Farrugia stated that he welcomed the proposals for the general regulation and the specific regulations for structural funds 2014-2020. They represent a positive step forward which should allow a better involvement of SMEs in the cohesion and the development of territories. Other specific proposals included:

European Social Fund ESF: 1) support initial and continuous vocational education and training, 2) support long term and continuous development and transfer of businesses, not only the creation of enterprises, 3) facilitate access of young people to the labour market, 4) promote the adaptability of business leaders 5) not limitation of the choice to four investment priorities but set priorities in consultation with social partners, 6) simplified costs for 50 000€ and 100 000€ on EU co-financing not only for public financing 7) formally maintaining ensure the existence of the ESF Committee.

Cohesion fund: Support tangible and intangible investments, including training, adaptation to climate change, including for SMEs and micro enterprises.

Rural development EAFRD: 1) Open the consulting services to SMEs and intermediary organisations and involve SMEs and micro- enterprises 2) reserve to SMEs and micro enterprises the assistance to beneficiaries other than farmers 3) aim to support processed goods directly transformed into consumption goods 4) support the transformation in the form of local industries involving agricultural and non agricultural activities 5) provide assistance to non- agricultural processors, not only to primary producers 6) promote local industries involving producers, processors and retailers of non farming SMEs, not only to farmers 8) ensure that all types of aid apply by the rules of competition and do not distort competition between identical activities carried out by farmers and non-farmers.

Vincent Farrugia has already presented these proposals verbally during the Section meeting and will present them formally in writing to the EESC Rapporteur.