Employee shortage is the top issue concerning their businesses, and overpopulation is the top national concern, SMEs indicated in the SME Q3 2025 Barometer, the Malta Chamber of SMEs stated on Thursday.
In a survey carried out in collaboration with Misco Malta, which was conducted amongst a total of 456 businesses between 6th and 16th October 2025, respondents indicated that a shortage of employees is the most pressing issue that their businesses face, with 46% of respondents considering it the most pressing issue. Unfair competition followed at 26%, and excessive competition in turn came in at 17%. The Chamber added that other key challenges included traffic congestion and skills mismatch.
With regard to top national concerns for SMEs, Overpopulation topped the list at 36%, with other concerns including lack of good governance at 31%, the level of corruption at 26%, and safeguarding quality of life being fourth at 23%.
With that said, the Chamber stated that business sentiment improved when compared to previous quarters, but added that 66% still feel that Malta is moving in the wrong direction. It continued that a slightly larger proportion of businesses expressed optimism about the next twelve months when compared to Q2.
The Chamber said that a question related to digital transformation found that 77% of SMEs recognise the importance of digitalisation for future growth, as 51% of respondents are actively investing in digital tools, while 26% acknowledge the importance of doing so but struggle to effectively implement it. The Chamber said that the government should expand financial incentives such as grants and credits in order to support digital adoption.
Listing recommendations to support micro and small businesses, the Chamber said that the credit cap for small enterprises should be increased from €50,000 to €70,000, and added that aid intensity for micro-enterprises should be raised from 45% to 65%. It further recommended additional €20,000 digitalisation capping for businesses introducing digital invoicing ahead of 2030.
The Chamber recommended stronger transparency and anti-corruption measures aimed at rebuilding institutional trust, and continued that there should be a streamlined regulatory process to reduce bureaucracy and duplication. It additionally recommended that a centralised advisory platform should be established to help SMEs access green and digital financing opportunities.
SME Chamber President Paul Abela said that SMEs continue to demonstrate resilience and adaptability, but added that they "need clarity, consistency, and fairness from institutions". SME Chamber COO Andrew Aquilina spoke about the need for the government to strengthen support for micro and small businesses during Budget 2026, and added that the government needs to enhance schemes and incentives which have historically provided critical assistance to such enterprises.