The Federation of Industry (FOI) yesterday launched the Micro and Small Enterprises Committee – a new initiative that will help businesses with fewer than 50 employees.
FOI president Adrian Bajada said small and medium enterprises were on the increase and the committee was set up to provide them with a better service.
He pointed out that the federation did not only represent large companies and pointed out that around 62 per cent of FOI’s members were businesses with fewer than 50 employees.
“Small and medium enterprises (SMEs) are vital to creating new jobs and improving the country’s economy. They generate new ideas that are often used by global companies to improve their competitiveness,” said Mr Bajada.
He added that the government gave great importance to SMEs, as could be seen in the provisions for this year’s budget.
The committee will meet regularly with key players to represent its members’ interests, and will respond to all major government consultations affecting local micro and small businesses.
The members of the committee are John De Giorgio from Shireburn Software, Frank Galea from Repro House, John Mansueto from Swan Laundry, Pierre Travers from Darrell Lea Foods, and Marthese Triganza from SKAT.
“There has to be less bureaucracy and red tape and an easier way to operate,” he said.
Setting up the committee was in line with the implementation of the European Charter for Small Businesses, added Mr Bajada.
The FOI and the committee will continue emphasising the importance of clustering and networking between the government and industry, better use of resources, and the strengthening of microcredit in the market, said Mr Bajada.
The chairman of the new committee, Joe Cortis, said 62 per cent of FOI members were micro and small enterprises.
“Of these, 22 per cent are micro businesses, with two to 10 employees, and 40 per cent are small businesses, with 11 to 50 employees,” he said.
The aim of the committee, said Mr Cortis, was to create a better and more competitive business environment for these companies.
“We will look at possible services and activities that could be set up while giving them a voice,” he added.
Furthermore, the committee would focus on improving entrepreneurship and network, utilising EU funding while giving greater importance to research and development.
Mr Cortis pointed out that small businesses often carried out a lot of research which in turn was used
by large companies to improve their competitiveness.
New challenges were often greater for micro companies due to their size, he said.
The Parliamentary Secretary for Small Businesses and the Self-Employed, Edwin Vassallo, said the new committee was not simply another section within the FOI but “the implementation of a greater commitment towards the sector of micro-enterprises”.
He pointed out that 96 per cent of all Maltese businesses were made up of such enterprises.
“The setting up of the committee clearly shows that the government’s policy for this sector is leaving the desired results,” said Mr Vassallo.
The parliamentary secretary spoke about the importance of a cultural change for those who were working in SMEs.
There were many businesses that did not have an entrepreneurial spirit and were easy to condemn any form of change, such as the euro changeover, he said.
The committee will start to speak out for the needs and concerns of micro and small enterprises, said Mr Vassallo.
“It is important that all those who are in business form part of an association that reflects their needs.”