Family Business Survey 2012: Malta

 

 

 

Two thirds of family businesses are following a growth strategy

Over the past twelve months, sales growth of family business in Malta was lower than that of their counterparts in Western Europe. However, 68% are aiming for growth in the next five years as compared to 77% in Western Europe and 81% globally. Virtually all those who aim to grow in Malta are confident about their prospects.

 

The general economic situation and innovation are the main concerns for the future

Family businesses in Malta are more likely than the rest of the world to view the general economic situation and innovation as key challenges as they look to build scale. Innovation is seen as an area where government or other bodies could potentially help and support family businesses.

 

Family businesses in Malta expect more support from Government

Maltese firms acknowledge that Government recognises the importance of family businesses to the economy however they mentioned a number of areas where Government can do more such as:

  • Improve access to EU grants and other incentives;
  • Reduce bureaucracy; and
  • Provide more support for business professionals (e.g. management training, consultancy, access to think tanks).

 

Family businesses recognise the need for external management input at a certain point

66% of family businesses in Malta have non-family members on the board. 19% are likely to offer shares to non-family members in the next 5 years.

 

A third of family businesses in Malta plan to pass on the ownership but not the management to the next generation

A number of different reasons were given for not passing the business down including: next generation will not be ready in time, never any intention to pass on the business, next generation will not have the required skills. 5% of firms in Malta plan to sell or float the company as compared to 15% in Western Europe.

 

   
   
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