Today, Parliamentary Secretary Josè Herrera addressed a conference by GRTU on “Malta's Digital Economy Gap Analysis: Identify Your Business' Next Step”. During this conference, organised as part of the SME week activities, Josè Herrera said that according to recent figures issued by NSO the Government believes that there is room for further engagement in the digital economy.
66% of our SMEs that are on the internet make use of social media while 82% of those using the internet have a website. Accommodation, food, transport and communication are the sectors with the highest number of SMEs, having website visits of nearly 90 per cent, closely followed by the real estate, professional, administrative and other service activities sector.
The same study shows that almost 20% of companies in Malta that use the internet sell online.
“Yet again, this is mostly evident within the accommodation and food service activities, transport and communication sector, followed, although not closely, by the wholesale and retail trade and the real estate, professional, administrative and other service activities sectors”, said Josè Herrera.
With regards to companies engaging in B2B eCommerce, 25% of SMEs with the internet buy online from suppliers, which is a 2.5% increase on the previous year.
“Today I must say that few growth opportunities can be expected without being totally immersed in the digital economy. The digital economy is how you leverage today’s globally interconnected technology to deliver on your company’s mission and vision. While the methods and tools for the digital economy continue to evolve, there is a starting point”, said Josè Herrera.
Addressing the SMEs present during this morning’s conference, Herrera said that the digital economy will not replace the business model but will only enhance their efforts to achieve their targets. “It is like your extended arm that will enable you to improve your customers’ experience, reduce your working capital and hence lead to improved profits. Above all, the digital economy is a means to an end rather than an end in itself”, said the Parliamentary Secretary.
Herrera spoke about the efforts made by the government to support one of the priorities of the EU Commission, which is the Digital Single Market. “By creating a connected digital single market, the Commission envisages a potential growth of up to € 250 billion in the course of the next five years, thereby creating hundreds of thousands of new jobs, notably for younger job-seekers, and a vibrant knowledge-based society. We need to be ready for the coming changes and benefit from potential opportunities”, said Josè Herrera.
Herrera said that this Government has put digital on top of its agenda. In 2014 the Government launched the Digital Agenda.
“As a government we are supporting our local industries to move forward in this direction and gain momentum. Specifically, we are reviewing our e-government services to make them simpler, operating on ‘once only’ principle. We are supporting the industry to continue their growth in e-commerce through various government initiatives promoted by Malta Enterprise, MITA and MCA. Our presence here is part of these efforts, aimed at increasing your awareness in the digital economy. We are pulling and pushing because at the end of the day your success is our success and our success will benefit society”, said Herrera.
Parliamentary Secretary Josè Herrera concluded that for both their success, and their survival, it is vital for small to medium sized enterprises to engage in this digital economy.
Opportunities abound for small business in digital economy – Cardona
Small and medium enterprises have a huge wealth of opportunities to exploit in the digital economy, Economy Minister Chris Cardona said today.
Addressing an event organised by the GRTU, Dr Cardona said small businesses can trade with customers thousands of miles away and online barriers are being removed.
He trumpeted Malta’s impressive headline economic figures, with growth projected to reach 4.2 per cent next year, a government spending deficit of just over one per cent and unemployment that is down to five per cent.
“Much has been achieved, but we cannot complacent. Other countries would kill for these figures,” Dr Cardona said.
He said a number of challenges and opportunities exist, with Malta having the potential to improve its ranking on the EU’s digital agenda scoreboard.