Press Release: Focusing on recovery and resilience of Malta’s micro, small and medium enterprises

Celebrating the UN’s World Day dedicated to MSMEs

The 27^th of June has been dedicated by the United Nations as a day for the world to celebrate micro, small and medium-sized enterprises (MSMEs). This year marks the 5^th anniversary since the start of this commemorative occasion.

Malta stands at par with the EU with Micro, Small and Medium Enterprises (MSMEs) amounting to 99.8% of total enterprises. MSMEs in Malta however account for 78% of total jobs in the private sector in Malta, surpasses the EU average by 10%. Malta also surpasses the EU average when it comes to the value-added generated by these same MSMEs by a staggering 25% with a total of 82% of all value added generated, compared to the EU average of 57%.

The level of significance that micro, small and medium enterprises have in Malta is higher than anywhere else. Our smallest in terms of size also are the biggest contributors in terms economic and social value. This is something we should be proud of.

The Chamber of SMEs has always valued the work of entrepreneurs and appreciated the dedication and personal risk this involves. Running a business is never easy, nothing comes guaranteed. Businesses work very hard to ensure they give a service to be able to retain and attract more clients and also earn a living for themselves, their employees and their families, for whom they feel responsible.

The unprecedented challenges Maltese MSMEs are experiencing at the moment make it even harder to stay in business. This year the UN has chosen to celebrate MSMEs under the theme of ‘Resilience and recovery in view of the triple threat of Covid, conflict and climate’, a theme that perfectly reflects the circumstances of Malta’s MSMEs.

Malta’s MSMEs are on a rollercoaster of events: preparing for the digital and green transition and being hit by the COVID-19 pandemic. Covid delt a disproportionate impact. Even though several support measures were created many businesses took on debt financing to keep their companies afloat. Following this, during a time crucial for recovery, a devastating war started at Europe’s doorstep, creating further challenges and disruptions. MSMEs are also suffering from persistent disruptions in supply chains, intense labour shortages, excessive bureaucracy and compliance requirements, which negatively impact their ability to function, take on work and carry out investments.

Notwithstanding all these difficulties, local MSMEs continue being resilient and step by step walk steadily towards recovery. MSMEs turn our economy into the miracle that it is. The road ahead however offers many challenges, and we call on our policy makers to be aware that the manifold challenges can be overwhelming.

Before approving a new legislative or policy proposal, decision-makers should think about whether they – in the shoes of the entrepreneur – would feel supported by the policy initiative to make their business recover or would they be able to comply with the proposed rules and the burdens involved. Our policymakers should “think small first” and act accordingly.