70% of small businesses think Malta is 'heading in the wrong direction'
Staff shortages continue to be a main cause for concern amongst SMEs
Almost one in three small businesses in Malta believe that the next year is not a good time to invest, while over half remain uncertain, according to a recent survey.
Of the 427 small businesses surveyed, only 16% said the next 12 months would be a good time to invest. In contrast, 30% responded negatively, and 54% were unsure.
In response, the survey recommended an urgent review and overhaul of investment-related schemes - such as the Micro Invest scheme, which has remained unchanged for a decade - to better encourage business investment.
The findings were published in the quarterly SME Barometer, issued by the Chamber of SMEs in collaboration with MISCO. The survey explored the opportunities and challenges faced by small business owners.
Some 70% of respondents said they believe Malta is 'heading in the wrong direction'.
Staff shortages emerged as the most pressing issue once again, with 43% of businesses citing employee shortages as their top concern. This was followed by unfair competition (24%), excessive competition (19%), late payments (17%), and rising inflation (16%).
When asked to name the two most pressing issues facing the country that they want the government to address, the top concerns were poor governance (33%), corruption (30%), overpopulation (30%), and inflation (27%).
Concerns about inflation have continued to rise compared to the previous three quarters.
The survey also called on the government to comprehensively address unfair competition, which is “negatively impacting businesses and their daily operations.” It further recommended strengthening transparency and anti-corruption measures to restore trust in public institutions, as well as reforming the public procurement and tendering processes to ensure they are more transparent, competitive, and accessible.
When asked about the use of artificial intelligence (AI), 50.8% of businesses said they or their employees were using AI, while 49.2% were not. Despite this, 71% said they had no plans to adopt AI within the next year, and only 34% reported receiving any training on the subject.
In light of this, the Chamber recommended launching a public awareness campaign to educate businesses on the benefits and risks of AI adoption.