The Social Entrepreneurs Association Malta (SEAM) has called for urgent clarity on the status of Malta's social enterprise framework, following recent government statements referring to major projects as 'social enterprises'.

In an open letter addressed to the Prime Minister earlier this week, SEAM welcomed continued investment in social initiatives, including the announced development of the Ta' Saura National Empowerment Hub. However, the Association expressed concern about the growing use of the term 'social enterprise' in the absence of an operational legal and regulatory framework.

"Malta has already taken an important step by passing the Social Enterprise Act in 2022," stated SEAM President Suzanne D'Amato Gautam. "However, until this framework is brought into force, the designation 'social enterprise' has no formal legal basis."

SEAM emphasised that this is not a question of the value or merit of any specific project, but rather one of credibility and consistency across the sector.

"A strong social enterprise ecosystem depends on clarity, shared standards, and trust in what the designation represents," the Association noted. "Using the term before the framework is in place risks creating confusion for practitioners, beneficiaries, and the wider public."

The Association highlighted that many organisations in Malta have been actively operating with a social mission for years, often without formal recognition, while awaiting the implementation of the framework that would define eligibility, obligations, and support mechanisms.

"In this context, clarity is not a technicality - it is foundational," SEAM said.

Through its letter, SEAM has formally proposed the communication of a clear timeline for the implementation of the Social Enterprise Act; the alignment in the use of the term 'social enterprise' with the legal framework once in force; a structured consultation with sector stakeholders, and direct dialogue with the Office of the Prime Minister.

SEAM reiterated its commitment to working collaboratively with Government and all stakeholders to ensure that Malta develops a credible, inclusive, and well-functioning social enterprise ecosystem.

"We believe Malta has the potential to lead in this space," the Association stated. "But this requires moving from announcements to implementation, and from broad terminology to clear, shared definitions."