EMCC European Monitoring Centre on Change

Malta ERM CAR on 'Emerging forms of entrepreneurship'

  • Observatory: EMCC
  • Topic:
  • Published on: 21 March 2011



About
Country:
Malta
Author:
Joe Montebello and Anna Borg
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

The most common form of entrepreneurship in Malta is the one person, self-employed, not employing any workers, type of enterprise. Part-time entrepreneurs are accounted for under this category too. When not referring to SMEs, on most occasions, public discussions and public policy centres on the ‘self employed and the challenges they face especially in the economic crisis In the local context, the category of the ‘self-employed’, can include various types of self employed persons who may, or may not be employing any workers. No statistical data is available on parallel, serial, and business transfers and successions and there is hardly any reference on emerging forms of entrepreneurship.

The questionnaire

Part I: Public/policy discussion

General policy discussions and policy approach


Do the public/policy discussions specifically deal with the different forms of business activities, since when and for how long?

Table 1: Presence of the different emerging forms of entrepreneurship in the public debate
 

Yes, continuously since xx year? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate yes where it applies)

Yes, has been on the public agenda, but since xx year it is no longer part of the agenda (Please indicate year)

No, it has never been part of the public agenda

(Please indicate X where it applies)

One-person enterprises /self-employed  

Yes

   
Part-time entrepreneurs  

Yes

   
Parallel entrepreneurs      

X

Serial entrepreneurs      

X

Business transfers and successions      

X


For each of the entrepreneurship/business activities covered by policy discussions, which policy domains are they covered in? Please indicate with an ’X‘ where relevant.

Table 2: Policy domains engaged in the policy discussion of the emerging forms of entrepreneurship
 

Labour policies

Educational policies

Economic/Industrial policies

Innovation policies

Regional policies

Other (please specify)

One-person enterprises /self-employed

X

X

X

X

X

 
Part-time entrepreneurs

X

X

X

X

X

 
Parallel entrepreneurs            
Serial entrepreneurs            
Business transfers and successions            


In which media and forum do the public debate and policy discussions about the different types of entrepreneurship take place?

Please indicate whether they are implicitly (e.g. publications are covering entrepreneurs in general with implicit implications for the different forms of entrepreneurs/business activities) covered and/or explicitly mentioned (for instance parallel entrepreneurs are explicitly mentioned in publications) in these publications

Table 3: Media and forums discussing the emerging forms of entrepreneurship
 

Public media such as newspapers and magazines incl. electronic media

Policy documents and analysis

Proposed legislation and/or business support schemes

Others, please specify

One-person enterprises/self-employed

Explicitly mentioned

Explicitly covered

Explicitly covered

 
Part-time entrepreneurs

Implicitly mentioned

     
Parallel entrepreneurs        
Serial entrepreneurs        
Business transfers and successions        

Specific topics to describe the different types of entrepreneurship


What has motivated the public debate?

Please specify for each of the five forms of entrepreneurship:

Table 4: What has motivated the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Motivator

One-person enterprises/self-employed

Public debate has generally been motivated by the changing economic and financial scenarios, which have highlighted the need for entrepreneurs to diversify their business and to seek innovative ways to operate in times of economic crises. Employers’ organisations often complain about the lengthy bureaucratic processes for micro enterprises and speak about the financial difficulties they are facing at the moment. They complain that the system is too rigid and does not allow enough flexibility. This leads to excessive bureaucracy, which can become a burden especially on the self employed.

From the financial aspect, employers’ organisations also complain about the lack of easy access to finance. They are concerned about the inadequate access to industrial premises from which to operate and the high collateral costs with property guarantees far in excess of the loan amount.

When discussing emerging forms of entrepreneurship the debate about knowledge, experience and capacity building, is often raised along with the need for more assistance in order to have the R&D efforts commercialised.

   
Part-time entrepreneurs

Not available

Parallel entrepreneurs

Not available

Serial entrepreneurs

Not available

Business transfers and successions

Attempts are being made by private interests to initiate discussions on business transfer and successions. The prime focus is family businesses, where it is understood that on retirement age of the owner no proper succession planning is undertaken.


What has been the focus of the policy discussion?

Please specify for each of the five forms of entrepreneurship:

Table 5: The policy focus in the public debate within each of the emerging forms of entrepreneurship

Type of Entrepreneurship

Policy focus

One-person enterprises/self-employed

Debates and discussions are directed to all who are interested in entrepreneurship and could contribute in the promotion of entrepreneurship. There is no differentiation between gender, race, age or employment status. However, when talking about the self-employed one would generally assume a white, male entrepreneur and not a woman or migrant worker. This is because the number of self-employed women is very low when compared to men: there are approximately 4 men to every woman entrepreneur (without employees). When one looks at the category of self-employed with employees, this difference increases to 1 woman for every 14 men (NSO, LFS 2009) In the public debate, the need to focus towards increasing the number of women and immigrants owning their own business should be given much more attention.

Policy discussions often focus on the need to curb abuses like illicit trading and unfair competition emerging from parallel trading and the importation of goods meant for personal use but which find their way in the retail market. Other policy issues include the debate about the need for assistance in Tax Credits and re-investment tax credits for Sees, and about the need for better business facilities and assistance in R&D undertakings.

From the labour market perspective, the policy focuses on creating more opportunities for start-ups and for existing entrepreneurs in order to stimulate more employment opportunities. In view of this entrepreneurs need to be supported by further professional development training in management and business development

Part-time entrepreneurs  
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions  

Has the public discussion resulted in a concrete outcome/impact?

Yes

Please specify for each of the five forms of entrepreneurship:

Table 6: Outcome or impact of the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Outcome/Impact

One-person enterprises/self-employed

The impact of public debate saw the reduction of administrative burdens as indicated in the National Reform Programme 2008-2010. This followed a public consultation process which the Maltese Government initiated in January 2008, with a view to establish what the perception of administrative burdens is and how these can be reduced. On the basis of this consultation process, the Maltese Government identified the following four priority areas namely: Company law; Financial services; Food safety; and VAT.

Malta Enterprise is the agency responsible for the promotion of foreign investment and industrial development in Malta. Its mission is to sustain Malta’s overall competitiveness in order to create the right environment for successful enterprise in Malta. Start-ups and entrepreneurs are assisted by schemes co-financed by the the European Union. Investment aid is given in the form of investment Tax Credits, and re-investment Tax Credit for micro enterprises. Such investment aid is offered by virtue of the Investment Aid-L.N 68 of 2008 Enterprise Support Initiatives Regulations.

Direct or indirect financial assistance is provided through programmes, such as the Entrepreneurship and Innovation Programme (EIP) within the Competitiveness and Innovation Framework Programme (CIP), and via the European Investment Fund (EIF). The financial schemes offered by Malta Enterprise are partly financed by the European Regional Development Fund (ERDF) and the European Investment Bank (EIB). A number of banks have established dedicated funds or have tailored business packages that are specifically designed to meet the demands of small enterprises.

Malta Enterprise assists in the dissemination of information, and provides counselling to start-ups if the business proposed is innovative. It provides dedicated assistance in the first 3 crucial years with the possibility of being allocated space at the Kordin Business Incubation Centre.

The Kordin Business Incubation Centre is provided by the Malta Enterprise in order to encourage innovative start-ups. This is a mixed technology-oriented style incubator providing a cost-effective business environment and a professional image with managerial expertise geared to the needs of small businesses. Allocation is at the discretion of Malta Enterprise, but projects linked to engineering design and development of equipment systems, renewable energy resources, biotech and innovative projects are preferred.

At the end of the incubation period, the entrepreneur may be assisted to relocate the business and continue to be provided with the services that are available on site for an extended period of not more than two years, and is directed to other forms of funding

The Employment and Training Corporation (ETC) is Malta’s public employment service organisation and provides equitable access to training programmes and employment services that contribute towards the social and economic development of the country. It offers education, training and the improvement of skills and competences to entrepreneurs, unemployed persons and others who are already in employment. This does not exclude other private institutions from providing vocational training.

ETC provides an entrepreneur training programme referred to as the Start Your Business scheme (Ibda Negozju Tieghek, INT). INT is a one-stop entrepreneurship programme aimed at promoting an enterprise culture among those people who are interested in taking up self-employment by opening up their own small business. In view of the rapid changes in the local and international labour markets, ETC has established a unit to provide advice and assistance to emerging entrepreneurs. These are assisted in the start-up and in continuous vocational development and training.

Part-time entrepreneurs  
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions  

Overall assessment


Within the last couple of years, to which extent has the public and policy discussion been more focused on the following different types of entrepreneurship compared to the business policy/entrepreneurship debate in general?

Table 7: Increased focus at the emerging forms of entrepreneurship?
 

To a low degree To a high degree

 

1

2

3

4

5

One-person enterprises/self-employed        

X

Part-time entrepreneurs  

X

     
Parallel entrepreneurs

X

       
Serial entrepreneurs

X

       
Business transfers and successions

X

       


Please list the main sources of information in the search for the above


Part II: Standardised structural data

Which standardised business statistics are available covering the different forms of entrepreneurship/business activities (explicitly or implicitly, i.e. also data that could be used to describe these forms of entrepreneurship without being published with this specific objective/heading)?

Table 8: Availability of business statistics about the emerging forms of entrepreneurship
 

Type of data available

Indicate access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed

Number of enterprises

X

2005

Annually

National Office of Statistics

Enterprises by branch (please specify which NACE code digit level is available)

X

 

Annually

National Office of Statistics Rev 1.1

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

X

 

Annually

National Office of Statistics

Economic performance e.g.:

Turnover

X

 

Annually

National Office of Statistics

Exports

X

 

Annually

National Office of Statistics

Employment

X

 

Annually

National Office of Statistics

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

 

Annually

National Office of Statistics

Number of discontinued enterprises, incl. bankruptcies –

X

 

Annually

National Office of Statistics Discontinued only

survival rate of enterprises

X

 

Annually

National Office of Statistics

Others, specify:

       
Part-time entrepreneurs

Number of enterprises

   

Ad hoc

National Office of Statistics

Enterprises by branch (please specify which NACE code digit level is available)

   

Not available

Not available

Availability of regional data (please specify)

   

None

National Office of Statistics

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

   

Ad hoc

National Office of Statistics

Economic performance e.g.:

Turnover

     

Not available

Exports

     

Not available

Employment

     

Not available

Others: ___________

     

Not available

Sustainability:

Number of new enterprises (start-ups) by year

     

Not available

Number of discontinued enterprises, incl. bankruptcies –

     

Not available

Survival rate of enterprises

     

Not available

Others, specify:

       
Parallel entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

     

Not available

Availability of regional data (please specify)

     

Not available

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

     

Not available

Economic performance e.g.:

Turnover

     

Not available

Exports

     

Not available

Employment

     

Not available

Others: ___________

     

Not available

Sustainability:

Number of new enterprises (start-ups) by year

     

Not available

Number of discontinued enterprises, incl. bankruptcies –

     

Not available

survival rate of enterprises

     

Not available

Others, specify:

     

Not available

Serial entrepreneurs

Number of enterprises

     

Not available

Enterprises by branch (please specify which NACE code digit level is available)

     

Not available

Availability of regional data (please specify)

     

Not available

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

     

Not available

Economic performance e.g.:

Turnover

     

Not available

Exports

     

Not available

Employment

     

Not available

Others: ___________

     

Not available

Sustainability:

Number of new enterprises (start-ups) by year

     

Not available

Number of discontinued enterprises, incl. bankruptcies –

     

Not available

survival rate of enterprises

     

Not available

Others, specify:

     

Not available

Business transfers and successions

Number of enterprises

     

Not available

Enterprises by branch (please specify which NACE code digit level is available)

     

Not available

Availability of regional data (please specify)

     

Not available

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

     

Not available

Economic performance e.g.:

Turnover

     

Not available

Exports

     

Not available

Employment

     

Not available

Others: ___________

     

Not available

Sustainability:

Number of new enterprises (start-ups) by year

     

Not available

Number of discontinued enterprises, incl. bankruptcies –

     

Not available

survival rate of enterprises

     

Not available

Others, specify:

     

Not available

Is it possible to crosstab or merge the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities with the company data specified in question 9 in a common database for analytical purpose?

In view of the lack of data in relation to the other types of emerging entrepreneurship, that is, part-time entrepreneurs, parallel entrepreneurs, serial entrepreneurs, and business transfers and successions, cross-tabulation or merging the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities, is not possible.

Yes:

Table 9: Availability of demographic statistics about the entrepreneur within the emerging forms of entrepreneurship
 

Type of data available

Indicated access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed Number of enterprises held by each entrepreneur/owner

X

 

On request

National Office of Statistics

Gender

X

 

On request

National Office of Statistics

Ethnicity    

None

 
Civic status (married, single, children)    

None

 
Age    

None

 
Geographical location    

On request

National Office of Statistics

Educational background (last registered education)

   

None

 
Current/previous employment of entrepreneurs (business experience)    

None

 

Sector familiarity of the entrepreneur – branch/NACE

   

On request

National Office of Statistics

Working hours of the entrepreneur    

None

 
Income of the entrepreneur    

None

 
Other types of data (Specify):        
Part-time entrepreneurs Number of enterprises held by each entrepreneur/owner      

Not available

Gender      

Not available

Ethnicity      

Not available

Civic status (married, single, children)      

Not available

Age      

Not available

Geographical location      

Not available

Educational background (last registered education)

     

Not available

Current/previous employment of entrepreneurs (business experience)      

Not available

Sector familiarity of the entrepreneur – branch/NACE

     

Not available

Working hours of the entrepreneur      

Not available

Income of the entrepreneur      

Not available

Other types of data (Specify):      

Not available

Parallel entrepreneurs Number of enterprises held by each entrepreneur/owner      

Not available

Gender      

Not available

Ethnicity      

Not available

Civic status (married, single, children)      

Not available

Age      

Not available

Geographical location      

Not available

Educational background (last registered education)

     

Not available

Current/previous employment of entrepreneurs (business experience)      

Not available

Sector familiarity of the entrepreneur – branch/NACE

     

Not available

Working hours of the entrepreneur      

Not available

Income of the entrepreneur      

Not available

Other types of data (Specify):      

Not available

Serial entrepreneurs Number of enterprises held by each entrepreneur/owner      

Not available

Gender      

Not available

Ethnicity      

Not available

Civic status (married, single, children)      

Not available

Age      

Not available

Geographical location        

Educational background (last registered education)

     

Not available

Current/previous employment of entrepreneurs (business experience)      

Not available

Sector familiarity of the entrepreneur – branch/NACE

     

Not available

Working hours of the entrepreneur      

Not available

Income of the entrepreneur      

Not available

Other types of data (Specify):      

Not available

Business transfers and successions Number of enterprises held by each entrepreneur/owner      

Not available

Gender      

Not available

Ethnicity      

Not available

Civic status (married, single, children)      

Not available

Age      

Not available

Geographical location      

Not available

Educational background (last registered education)

     

Not available

Current/previous employment of entrepreneurs (business experience)      

Not available

Sector familiarity of the entrepreneur – branch/NACE

     

Not available

Working hours of the entrepreneur      

Not available

Income of the entrepreneur      

Not available

Other types of data (Specify):      

Not available


Is the data freely accessible or does it require registration, payment and/or a special effort to access the data? Please explain the accessibility for each of the forms of entrepreneurs/business activities and datasets referred to above.

The data is in most cases freely accessible and does not require registration or payment. However information request that require specific or particular information that has to be collated, is done against payment.

Table 10: List of statistical sources about the emerging forms of entrepreneurship

List data source/dataset

Explain the accessibility

Central Bank of Malta

http://www.centralbankmalta.org/

European Commission, Enterprise and Industry

http://ec.europa.eu/enterprise/index_en.htm

General Retailers and Traders Union

http://www.grtu.org.mt

Ministry for Finance and Investment

http://finance.gov.mt

Malta Enterprise

http://www.maltaenterprise.com/

National Office of Statistics

http://www.nso.gov.mt

Malta Chamber of Commerce., Enterprise and Industry

http://www.maltachamber.org.mt

Malta Chamber of Commerce, Enterprise and Industry

http://www.eurochambres.be/Content/Default.asp?PageID=169

Part III: Research

Please describe studies and research available nationally for each of the forms of entrepreneurs/business activities.

Table 11: List of studies and research about the emerging forms of entrepreneurship
 

List the references (author’s name, title of publication etc, year of publication, organisation)

A short summary of the contents (e.g. topic covered, methodology applied)

One-person enterprises/self-employed

Ministry for Finance, Economy and Investment, National Reform Programme 2008-2010.

The Maltese Government is embarking on a number of measures and reforms with a view to mitigate the impact of these challenges whilst at the same time ensuring that Malta improves its attractiveness to foreign investors.

Within this context, Malta’s microeconomic pillar proposes actions which address unlocking business potential, investment in knowledge and innovation, energy and climate change.

  National Office of Statistics, Business Demographics 2000-2008.

This release provides a snapshot of the business population by NACE Division over a period of years. It shows the number of resident units, active and dormant, for the nine-year period, broken down by the legal form of the organisation and NACE Division (2-digit). Additionally it provides unit births and deaths respectively, once again broken down by NACE Division for the same period. is the data is limited to the five-year period between 2004 and 2008. The resident units in the population for the past years are presented according to their economic activity (at NACE Division level) as well as by the unit size, based on employment breakdowns, i.e. micro, small, medium or large.

  Andre Fenech, Commercial Courier, Pilot Action on the transfer of Expertise through Mentoring in SMEs, 2008, The Malta Chamber of Commerce, Enterprise, and Industry.

The aim of this study is to identify and recruit a group of entrepreneurs, who took over a business within the previous year or were on the verge of doing so. In effect for the purpose of this project the mentee or entrepreneur is defined as being the owner and manager of the company taken over or he/she must possess a minimum of 50% of the shares of the company taken over. The Chamber provided 10 full man-days of mentoring free of charge, for each participating businessman/businesswoman.

  Flash Eurobarometer 2007, Survey On Entrepreneurship

The survey on entrepreneurship is about peoples' entrepreneurial mindset. It examines the motivation, choices, experiences and obstacles linked to self-employment. The results help EU policy makers to understand problems and develop future policy responses

     
     
Part-time entrepreneurs    
Parallel entrepreneurs    
Serial entrepreneurs    
Business transfers and successions

Nicholas Borg Cardona, Overview of Family Business Relevant Issues Country Fiche Malta, 2008, Europa Research and Consultancy Services Ltd.

The discussions found in the Fiche mainly address the unique challenges, priorities and constraints faced by the family business in today’s ever-changing business environment. All family businesses are facing a new business environment brought about by changes in consumer demand, higher standards and regulation, and increased competition. Generally, topics open for discussion fall under the following categories: Ownership Succession, Conflict, Management Succession, Business Growth Constraints and the Family Business Management Team.

Joe Montebello and Anna Borg, Centre for Labour Studies.



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