When, during the last general election campaign, the Nationalist Party promised that they would remove red tape and lay a red carpet for small businesses if they were to be re-elected, many must have yawned over the proposal, arguing, no doubt, that it was not the first time they made such a promise. Such cynicism is only partially correct, for, in truth, progress has been made in several services that are of direct benefit to small businesses. Yet, a great deal more remains to be done if the growing sector of small businesses is to flourish and expand even further.

Very often people generally think of big enterprises when for one reason or another manufacturing industry is brought into the limelight. Yet, a very important segment is that made up of very small units, described by Finance Minister Tonio Fenech the other day as the motor of the country's economy. These employ 67,000 people and Mr Fenech said that measures announced in the last two budgets had given the expected results as more than 7,000 new small businesses were set up.

However, despite the improvements made so far in matters that directly affect small businesses and the direct assistance already given, the sector is expecting greater effective help in its bid to become more efficient. Vince Farrugia, the director general of the Chamber of Small and Medium Enterprises - GRTU, echoed their feelings when he was reported saying: "We cannot keep saying that SMEs are the backbone of the country's economy and then do little in their best interest".

Speaking at a national conference held as part of a consultation programme in the run-up to the presentation of the next budget, Mr Farrugia highlighted the excessive red tape and bureaucracy small businesses had to face daily. Owners of small businesses, he said, had to spend hours filling in forms and returns. In Cyprus, he argued, small businessmen could fill in a VAT return in a matter of minutes. Others at the conference pointed out that some businesses could not fill in such forms without the help of an accountant or lawyer.

The Finance Minister had good news for small businesses in this regard. He said the government planned to announce, in the near future, proposals for the simplification of reporting requirements. The undertaking has already been made in Malta's national reform programme, which promised to reduce the burden of bureaucracy on small businesses. Now, it has again been formulated in one of the 353 promises made by the PN before the general election. It remains to be seen if the government keeps to its commitment. It can hardly afford not to, considering the size of the sector and the voting power it carries. On its part, Malta Enterprise appears to have done a lot already to make it easier for small entrepreneurs to get established. According to information given by its chief executive, it runs no fewer than 28 schemes to help SMEs. It had also provided premises for 80 firms. So, it looks as if the administrative infrastructural services are in place.

One other interesting proposal in the PN's electoral programme was that promising the setting up of an entrepreneurship research unit to help small businesses in their work and in their search for assistance out of EU funds. Help ought to be directed not just to small businesses within manufacturing industry but also to those in tourism.