We are living in a consumerist society where with a click of a button, we can have everything we want delivered to our doorstep, from food, to clothes to appliances. You name it, you have it. Maltese business has flourished and grown, with several retail stores in which every person can surely find what he or she is looking for at any given time. 

Christmas time is when we see a significant increase in consumer spending and our shop owners thrive, sustaining their business and allowing them to invest more in it. When it comes to small businesses however, their sustainability depends heavily on consumer loyalty and spending. Small businesses are the backbone of our economy, which is why it is in our government’s vested interest to protect them and find ways which will enable them to not only support themselves but to grow further. Regrettably, it is not all smooth sailing as it appears.

One would assume that Maltese businesses are thriving and should be seeing a significant increase in consumer spending, given that the government has been boasting about a flourishing economy. Yet recent studies draw a different picture. Maltese businesses are suffering profit loss, a decrease in sales, and, to top it all, an increase in their own spending for the upkeep and survival of their business. A survey carried out by the Malta Chamber of SMEs (GRTU), which confirms previous statistics collected by Eurostat, shows a substantial decrease of sales for Maltese shop owners. The survey revealed that 53 per cent of shop owners believe that their sales have remained the same while 21 per cent said sales have gone down.

These figures are not isolated. In fact, data published by Eurostat shows that sales from shops is on the decline. Simply put, numbers do not lie and these figures highlight the fact that we need to help SMEs. Over the past months I have visited various shops in Birkirkara, San Ġwann, Sliema and Valletta. These visits were a revelation for me. Owners shared their concerns with me and the challenges they face during this so-called economic boom.

While sales from shops are declining, online shopping is on the rise but the situation is not plain sailing with businesses facing several challenges including unfair competition.

The worrying figures recorded for 2018 and concerns raised with me reinforce what I have been fighting for at European level – transparency and fairness for businesses selling and advertising their products and services online. Over the past days, I have successfully concluded a series of inter-institutional meetings involving Council, Commission and the European Parliament agreeing to the text of a new regulation.

This regulation is not only crucial for Maltese businesses that rely on platforms to reach their consumers, but also for consumers who use platforms extensively to buy services and products online and seek best value deals. Small SMEs will now have access to information generated through their commercial activity. This will help them to market their products and to provide customers with a better service. The regulation also ensures that platforms and search engines treat other businesses fairly and that there is no abuse of their economic power. This is critical to ensure no harm is suffered by businesses and to promote trust in the online platform environment of the European Union. Online platforms and search engines will have to be more transparent when determining how goods and services are ranked in search results ensuring fair competition as well as consumers truly securing best deals. This regulation moreover seeks to offer redress mechanisms to small businesses and protect SMEs from unfair practices. 

The successful outcome of this regulation is a positive result for small businesses and a step in the right direction to help SMEs. In the meantime, I remain committed to continue building a close relationship with the self-employed and will continue to push forward and communicate their challenges at a European level.