80% of family businesses registered increased turnover in 2015

The eighth edition of the Family Business Survey - a survey on the global state of family businesses - carried out by PricewaterhouseCoopers (PwC) has found that 80% of family businesses in Malta registered an increase in turnover over the last 12 months. 

In Malta, 98% of all businesses are small or medium enterprises (SMEs), with the vast majority being family run businesses. Roughly 80% of the local workforce is employed by SMEs. The survey also found that 60% of family businesses generated an average of 24% of their turnover from overseas markets.

The results from this study were published during the Family Business Forum organized by PwC and BOV, during which the ramifications of the newly published Family Business Act on these businesses was explained by Minister for the Economy, Investment and Small Business Dr Chris Cardona.

Speaking at the Family Business Forum, Economy ministry Chris Cardona said that family businesses normally fail or shrink due to difficulties encountered in transferring their business beyond the second generation. 
“The Family Business Act encourages such succession and the recently announced Budget incentive for 2017 will allow all those businesses which transfer their business to their children in the coming year to benefit from a reduction of tax from 5% to 1.5%,” said Cardona.  

He said that the Family Business Act will provide incentives that cover legal and accountancy advisory services, arbitration, education and training, and extend to loan guarantees, micro investment, concessions on duty and lease renewals of government premises.
The minister also noted that the new legislation will guide and provide strategic planning and processes that will allow such business to explore and expand their ventures abroad.

During the Maltese Presidency of the EU Council the economy ministry will host a high-level business transfer conference, allowing for the discussion of the pioneering Act, the results of the statistical survey as well as other areas concerning business transfers. Former Prime Minister of Finland and current European Commission Vice-President for Jobs, Growth and Competiveness Jyrki Katainen will be in attendance.