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.
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.
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:
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 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.