Surviving the competition : small business in Malta

Abstract

The performance of small firms is crucial for the overall growth and development of many economies. In the European Union, small- and medium-sized enterprises (SMEs) account for about 95 per cent of the firms, and together they provide more than two-thirds of total employment. In a small economy such as Malta's, the majority of firms tend to be very small, and perhaps the term micro-firm would be appropriate to the typical firm in Malta. There is, at present, a feeling of unease regarding the long-term survival or otherwise of small firms in this intensely competitive setting, since a sizeable proportion of them can only operate profitably behind a wall of protection. At the same time, the firms that have succeeded, and will succeed in meeting the competitive challenge, will not only be ensuring a profitable existence for themselves, but will also help to improve the standard of living of the Maltese population to levels experienced in Europe.