SMEs 'backbone' of Malta's economy - Gonzi

The PN proposals for small and medium enterprises was the focus of Prime Minister Lawrence Gonzi's visit at the Qormi open Market,

Addressing the press at the end of a walkabout at the market, Gonzi said that a new PN government would commit more EU funds to SMEs to stimulate further economic growth.

Describing small businesses as the "backbone" of the Maltese economy and a vital cog in the country's solid economy, Gonzi said that in the next five years "the government will work hand in hand with small businesses to create more jobs."

In Malta, SMEs comprise approximately 99% of all firms out of which 95% are micro companies, employing up to 10 persons. These companies contribute around 65% of Malta's GDP with micro SMEs contributing around 24% of total GDP.

Listing a number of measures benefitting SMEs in the PN's electoral programme, Gonzi said that a new Nationalist administration would allocate more EU funds for SMEs investing in e-business, research and development and innovation.

He also explained that a new scheme, B-start, would be launched aimed to aid business owners who either want to enter into a joint venture, or setup up a new business by saving up to €30,000 in income tax.   

Gonzi added that another measure included in the PN electoral programme would see self-employed paying social security proportionally to their income instead of making a full payment.

"We will also extend the micro-invest scheme to SMEs employing up to 30 people. Through this scheme 40% of investment will be deducted from income tax, while Gozitan SMEs will benefit from a 60% rate," Gonzi said.