At just 16, our teenagers can be elected mayor, vote in local elections and even get married with parental consent. Yet, when it comes to running their own businesses, they are somehow deemed unfit.
It’s a curious contradiction that seems to suggest our youth are capable of governing towns and villages but are not trusted with the comparatively less risky endeavour of managing a business.
But are we really listening to our youth and considering their aspirations?
Let us consider this. Data from a Eurobarometer survey reveals that 49 per cent of young Maltese would leap at the chance of self-employment if given the opportunity. Yet, only seven per cent have managed to break through the barriers and are currently self-employed. This indicates that our youth are eager to turn their ideas into thriving businesses but, instead, they’re stuck waiting for the legal green light.
Currently those under 18 can work and be in employment, however, to be self-employed, they must obtain emancipation from their parents or guardians to set up their businesses, creating complications. Additionally, young entrepreneurs face challenges in obtaining a VAT number without it negatively impacting their student stipends.
This bureaucratic red tape restrains innovation and entrepreneurship at inception.
Recognising this, JA Malta is advocating for allowing those under 18 to set up their own businesses – a proposal that makes a cornerstone of our broader set of recommendations submitted for the 2025 Budget.
We recommend that the government revise VAT regulations to permit under-18s to obtain VAT numbers without impacting their status as students. If concerns about the risks associated with minors’ contractual obligations persist, introducing an ‘under-18 sandbox’ could be a viable solution. This controlled environment would enable young people aged 16 to 18 to operate businesses with limited transactions, providing a gradual path to full business operations once they reach 18.
The potential of Malta’s youth is vividly illustrated through the JA Malta Company Programme, formerly known as Young Enterprise. During this programme, students engage in an immersive simulation that teaches them the core principles of running a business. The company programme is designed to spark sixth form students’ entrepreneurial ambitions, yet, participants are often left in limbo, unable to fully pursue their business aspirations until they turn 18.
Take the founders of the digital app GRNR, for instance. As alumni of the JA Malta Company Programme, a team of five young students from G.F. Abela Junior College harnessed their experience to pitch their app, GRNR, on Shark Tank Malta. Their pitch was met with enthusiasm, securing a substantial €25,000 investment from five local entrepreneurs.
A Eurobarometer survey reveals that 49% of young Maltese would leap at the chance of self-employment if given the opportunity- Matthew Caruana
This achievement underscores not just their individual talent but also the broader potential of our youth, and their success is a testament to the creativity and drive that young Maltese possess, which, if properly supported, could lead to even more inspirational ventures and contributions to our economy.
Allowing under-18s to start and run their businesses in Malta is not just about creating new opportunities for young people. It is about fostering an entrepreneurial culture, nurturing future business leaders and driving economic growth. It is about aligning our policies with the reality that young people are capable, motivated and ready to contribute significantly to Malta’s economy.
Let’s keep in mind that by obstructing the path for under-18s to legally open and own a business, we are inadvertently pushing our youth toward operating in the shadows of the black market. Many young Maltese, eager to explore entrepreneurship by selling their handmade jewellery, art or crafts, are forced to resort to doing so under the table. In a world where e-commerce and drop shipping have opened endless opportunities, our youth have the potential to reach far beyond Malta’s shores.
Lastly, while some may face challenges or even fail in managing or sustaining their businesses at a young age, and while this endeavour may not be a ‘for life’ pursuit, the experience itself will be invaluable. It will teach our youth patience, discipline, perseverance, creativity, problem-solving and so much more – lessons that will surely stay with them long after.
Whether they fail or succeed is not up to us but what is our responsibility is to clear the way for our youth to pursue this journey and experience it for themselves.
Matthew Caruana is CEO of the JA Malta Foundation.
JA Malta Foundation is an NGO dedicated to empowering young people by providing them with educational programmes focused on entrepreneurship, financial literacy, and work readiness.