Government, business join forces to boost small enterprise

Six constituted bodies and associations have agreed to join forces to implement a government plan of action to boost micro and small enterprises by cutting costs and other business-friendly measures.

A Memorandum of Understanding signed by the social partners yesterday also speaks of eliminating over-regulation, undue bureaucracy and underground operators.

The MoU was signed by Parliamentary Secretary Edwin Vassallo, the Federation of Industry, the Chamber for Small and Medium Enterprise, the Chamber of Commerce, the Malta Employers' Association, the Malta Institute of Management and the Malta Hotels and Restaurants Association.

The secretariat's plan is called Encouraging Entrepreneurship Development for the Creation of New Businesses and Jobs.

Before the plan is implemented, the social partners will take part in assessing its impact on laws and regulations.

They agreed to ensure that the environment and society are given due regard through the upholding of business ethics and the principles of consumer affairs.

They will work with the government to identify means to reduce the operational costs imposed on businesses while discussions will be held with banks to offer better business banking facilities and services.

The six social partners will also help the secretariat to put in place a structure through which those with money for risk capital requirements are "matched" with people who have business acumen and innovative ideas but who do not have the financial support for their business plans.

The associations will also support the secretariat in information campaigns to be held from time to time in the industrial zones on issues such as waste management and EU funding opportunities.

Meetings will be convened on a monthly basis to evaluate the progress of the joint initiatives.

Speaking at a news conference, Mr Vassallo emphasised the need to work in synergy and especially to put words into action, especially since the majority of all businesses in Malta were classified as small businesses.

GRTU director general Vince Farrugia said SMEs and traders needed initiatives to spur them on following the blows dealt by the increase in VAT and eco taxes.

FOI president Adrian Bajada applauded the proposals taken in the MoU, as he believed that a boost to micro enterprises would ultimately ripple on to macro enterprises.