Enforce the Social Enterprise Act now, PN urges government after four-year wait

Updated 4.30pm

The PN on Friday urged the government to bring into force a legal framework regulating social purpose businesses that was enacted four years ago.

The Social Enterprise Act was enacted in 2022, but has not yet come into force as it has not yet been published in the government gazette, and the regulator has not yet been appointed by the minister responsible for enterprise, Michael Piccinino noted.

However, in a statement on Friday afternoon, the Ministry for the Economy pointed out the Bill amending the Act was presented in Parliament in March 2026 and published in the Government Gazette the following month. 

"The remaining steps are simply a matter of parliamentary procedure," a ministry statement said, pointing out that the process had stalled when Parliament was dissolved due to the general election.

The shadow minister for small enterprises said in a statement this delay was unacceptable, especially considering that the sector could make a tangible difference in people’s lives and communities.

"Social enterprises are not simply businesses like any other. They are economic initiatives with a clear social purpose, where success is measured not only by profit, but also by the value created for society," Piccinino said.

"This can include, among other things, employment and training for people who find it difficult to enter the labour market, community services for older persons or persons with disabilities, initiatives supporting people at risk of poverty or exclusion, projects that provide skills to young people and adults, and businesses that reinvest a substantial part of their resources in their social mission."

The PN said Malta needed a clear, robust and credible framework for social enterprises. This framework should provide certainty to those already working in the sector, offer direction to new initiatives, and ensure that the term “social enterprise” is used correctly and consistently, and is linked to clear criteria.

Social enterprise can serve as a bridge between the economy and the social sector, between wealth creation and the creation of value for the community, Piccinino said.

He urged the government to publish a clear timetable setting out when the act will come into force and to ensure that its implementation took place following full consultation with all stakeholders in the sector.

"Our country cannot continue to leave such an important law on the shelf. Those working to create social impact should be given a clear framework, not uncertainty.

"Those who wish to invest their time, skills and resources in initiatives that support people and communities should find a State that understands and supports this value."

In its response, the Ministry for the Economy said the Social Enterprise Act requires the appointment of the Regulator before it can come into force.

"Following developments in the sector, it was felt that further amendments were necessary for the implementation of the Act," the ministry said.

"The Opposition is well aware of this," it added, noting that the PN  was kept updated "throughout the entire process".

"The Government remains committed to implementing a credible and robust framework for social enterprises — one that provides certainty to operators, protects the integrity of the term “social enterprise”, and ensures that this sector can continue to grow in a serious, transparent and sustainable manner."