With 97 per cent of the companies registered in Malta employing fewer than 10 workers, the government has always maintained that, in order for the economy to continue growing, small and medium-sized enterprises need constant support and assistance.

Having introduced, over a number of years, measures and incentives aimed at strengthening the sector, the government believes that the time is now ripe for the enactment of a law that will give further cognisance to small businessmen and at the same time give them the legal means with which to protect themselves.

It is with this in mind that the government published a consultation paper on a Bill for SMEs, Jason Azzopardi, parliamentary secretary responsible for the sector, told The Malta Independent on Sunday.

“The government has created an ideal framework in which SMEs can operate. The law will now provide them with the legal framework that will serve to make their lives easier,” he said.

Over the years, the government has reduced registration rates for SMEs, launched several initiatives through Malta Enterprise to help small businesses grow, introduced a Micro Invest scheme that exempts small enterprises from paying tax on the amount they invest in their business and has attracted €25 million from EU funds for the sector.

“All this has encouraged more people to open up shop. In 2009, a year characterised by unprecedented international economic turmoil, the number of new small businesses that were set up reached 4,666,” said Dr Azzopardi.

“This has been ongoing for the past decade. Between 2001 and 2009, the number of micro enterprises increased by 52 per cent [see table]. This proves the confidence that businessmen have in the government’s policies and in the country’s economy.”

The time has now come for the government to enact a law that will make it easier for small enterprises to operate and develop. First of all, it is intended to reduce the amount of bureaucracy that has often resulted in complaints.

“Some of these complaints were justified, others were not. But a law incorporating all matters related to the sector under one umbrella will make it much simpler for SMEs to coordinate their efforts. Reducing bureaucracy will give them more time in which to plan their development,” Dr Azzopardi said.

The law will ensure that all measures introduced by itself or its entities are small-business friendly. “Added to this” he said, “between the publication of the law and its implementation, there must be enough time for SMEs to regulate their position.”

It is intended that the law will include the setting up of a consultative body aimed at helping the government formulate and implement a policy for the sector. A college of regulators will also be established to advise the government on ways of reducing bureaucracy, while at the same time providing the means by which the services used by these enterprises will be harmonised.

Public entities that work regularly with SMEs will be closely monitored so that their service to small businesses remains productive and efficient. Dr Azzopardi said that bodies representing SMEs will also be encouraged to adopt a code of ethics.

“The government believes in small enterprises. It has always worked to provide them with the best possible means to run their business, because we know that they are truly the backbone of our economy. Once they flourish, the whole economy flourishes with them. Now we are taking another step forward,” he said.

The consultation period is open until 2 December. Any feedback may be sent to [email protected] The consultation document may be found on www.mfei.gov.mt

Size Employees Total 2001 Total 2009 Increase Increase %

Micro 0-9 42,057 63,835 21,778 52%

Small 10-49 1,222 1,432 210 17%

Medium 50-249 276 320 44 16%

Large 250+ 60 67 7 12%

Total 43,615 65,654 22,039 51%