A research project funded by the European Union has highlighted the difficulties encountered by entrepreneurs in Malta as well as what they need to succeed.
The project, conducted by researcher Marika Fsadni, revealed that red tape and excessive bureaucracy in government departments and various authorities was one of the main obstacles that were hindering their operations.
Moreover, businesses questioned said that finding clients in order to secure orders was another obstacle they were facing regularly.
Almost two-thirds of the respondents said that financial difficulties and limitations was another problem they were facing. Of the respondents, 53 per cent indicated that Malta’s external environment did encourage them to set up their own company but 45 per cent said the opposite.
The findings clearly showed that the two most pressing difficulties faced by experienced entrepreneurs were finding new clients, due to fierce competition, and exorbitant taxes and NI contributions that have to be paid by small businesses.
A staggering 86 per cent of all respondents said Bank of Valletta and HSBC Bank Malta – the two leading commercial banks – had played a significant role in the success of their company.
Nearly half the respondents said that Malta Enterprise had played a significant role in the success of their business, while nearly 30 per cent said the Employment and Training Corporation had been instrumental in their success.
Fifty-seven per cent of respondents indicated that Malta-based public institutions were not aware of the specific needs and difficulties encountered by small businesses in Malta and 68 per cent said they did not think that Malta’s external environment – with its regulations and bureaucracy – was conducive to setting up businesses.
The document, entitled Entrepreneurs Base Document (Malta), also includes a list of recommendations to the government on how business in Malta could be facilitated.
Parliamentary Secretary Edwin Vassallo said the document was important to enable government to focus its attention on the needs of these entrepreneurs so they can be successful.