2024 Business Performance Survey Results: Employee shortage and unfair competition named as the top concerns for businesses

The Malta Chamber of SMEs published the findings of its annual Business Performance Survey for 2024 as part of the SME Barometer in collaboration with Misco Malta, providing critical insights into the performance, challenges, and expectations of businesses across the country.

The press conference was addressed by SME Chamber President Mr Paul Abela, Deputy President Mr Philip Fenech, COO Mr Andrew Aquilina.

The survey, conducted online between January 10 and January 22, 2025, collected data from 364 unique businesses spanning multiple industries.

Key Findings

• Business Performance and Turnover:

Compared to 2023, 42% of respondents reported an increase in turnover in 2024, while 34% experienced no change, and 24% noted a decline. Key drivers of growth included improved marketing efforts (34%), better sales strategies (30%), and enhanced consumer confidence (20%).

• Profitability Trends:

Profitability levels remained steady, with 41% of businesses reporting no change compared to the previous year. However, 33% experienced reduced profitability, highlighting ongoing challenges in cost management and resource allocation.

• Rising Costs:

The main contributors to rising prices were increased employee wages (63%), and higher costs of imported products (54%).

• Festive Period Sales:

During the 2024 festive season, 24% of businesses saw increased sales, while 46% maintained the same turnover as in 2023. However, 30% reported a decline in festive season sales.

• Challenges Facing SMEs:

Businesses identified labour shortages, unfair competition, and increasing operational costs as top challenges. Delayed client payments also negatively impacted cash flow.

The Malta Chamber of SMEs President Mr Paul Abela said that the survey highlights several systemic issues affecting businesses in Malta, such as overpopulation, transparency and labour shortages. Mr Abela highlighted that the SME Chamber is currently preparing feedback related to the Malta Labour Migration Policy.

Mr Abela said that the challenges, including persistent employee wage and salary costs, along with rising costs of imported goods, have prompted calls for urgent government action to address issues of unfair competition and governance.

Mr Andrew Aquilina, Malta Chamber of SMEs COO highlight that another issue which resulted from this survey is related to the late payments and stated that this creates cash flow issues for SMEs, making it harder for businesses to meet their financial obligations and sustain operations.

Click here to download the full survey results.