SMEs: A time for renewal, courage and determination

To say that the global economic scenario is unpredictable would be a sore understatement. In normal circumstances this transience is already a given, let alone during a raging pandemic, the likes of which none of us have ever experienced in our lifetime.

These unprecedented circumstances have wreaked havoc on small and medium businesses the world over. Thankfully, as a country we are in a position to better weather this storm and ensure that our SMEs can come out on the other side better and stronger than ever before.

It would be good at this point, to reiterate the importance attached to SMEs in any flourishing economy. SMEs remain the backbone on which our country thrives or otherwise. Small businesses are crucial elements to the wellbeing of our business community as a whole, creating micro-networks which ultimately create far-reaching prosperity, and support the livelihood of thousands of workers and their families.

But now we are on the cusp of another era in our history, a ‘new normal’ within which our business community needs to adapt, refocus its mindset and reengineer its perception of entrepreneurship. Plans by the government to facilitate this have long been in the pipeline. The only difference is that our plans have now been accelerated. We have over the past months launched several schemes and initiatives which encourage innovation as well as robustly assist in the diversification and growth of our SMEs. And in this ever-evolving scenario innovation and diversification are now key to the survival of our business community.

There has never been a better time, nor as urgent a situation as now for our businesses to reinvent themselves, be bold, change direction if necessary and take a more technologically led and greener approach to their endeavours. If we want our SMEs to grow and flourish, now is not the time for battening the hatches, but a time for renewal, courage and determination.

It is by now widely acknowledged that as a government we have continually recognised the significance of our SMEs within our economic ecosystem. This we have proved time and time again, not by paying lip service to the challenges encountered by our business community but by factual, tangible assistance through several schemes and incentives which sought to not only overcome the difficulties brought about by the pandemic but also guide our enterprises well into the future.

And SMEs have magnificently risen to the challenge. We have witnessed over the past few months, the adoption towards digitalization by several SMEs in a bid to achieve a better customer reach. We have also seen the overhaul of long-standing businesses to better suit current demand, investment in brandnew projects, the launching of innovative start-ups and even in some instances company expansion.

It is also worthy to note that at the heart of our business community lie our valuable family businesses, businesses which have thrived for generations. As a government we want these to continue to grow and flourish and continue with their precious legacy from one generation to the next. That is why in recent years we have sought to offer strong incentives, including a hefty reduction in stamp duty, through which family businesses have saved €23 million in taxes during the last three years; a vital measure which will be extended for another year.

This is the level of importance the government attaches to family businesses; by providing a multitude of aid schemes, including Microinvest, the family business advisory scheme which deals with transfer restructuring and succession, the Transfer scheme, as well as other training-related schemes which are so significant for the constant regeneration of family-owned enterprises.

As a Government, we fully recognise the value of each sector within our economy, regardless of size, and intend to continue with our strategy to offer the maximum support necessary, at all times, to our families, workforce, and businesses. It is a strategy that has borne and is bearing fruit, despite the devastating circumstances. And the data speaks for itself. According to statistics published just this week by the NSO, October was the 5th month during which unemployment fell and even more significantly, half of those who lost their job after the pandemic are now back in employment.

These are the results we seek, results which are not only abstract accolades for the government, but ones which translate into a better quality of life for the Maltese people. It is therefore even more heartening, for example to receive approval for our budget by the European Commission, which also argued that our debt will be better than projected thanks to the EU funds we will receive. This is more than encouraging in view of our plans to bolster further our businesses, industry and ultimately, families.

We have unfailingly strived to protect our country from the raging storm, indiscriminately supporting all those who need support, providing the necessary safeguards to mitigate any adverse circumstances and ensuring continuity against all odds. However, the time has come to look forward. It is only through a radical mindset change, one which delves beyond the immediate present and seeks every favourable opportunity, will we ensure prosperity and a keener competitive edge, which will aid our businesses and ultimately our workforce to flourish not only in a local context but also on an international level.

From our end, as a government, we have put up the necessary mainstays for the modern transformation of our economy’s backbone, our businesses, which in turn, now need to take the plunge into an even stronger, more brighter future, towards their own unprecedented success and equally important, that of our country.