SME Barometer ® (Q1 2024) Report published – Employee shortage and increase in inflation remain the two most important issues for businesses

The Malta Chamber of SMEs, in collaboration with MISCO, published the latest edition of the SME Barometer® report, offering invaluable insights into the economic pulse, business sentiment, and challenges confronting small and medium-sized enterprises (SMEs) in Malta.

The quarterly report has identified key findings from the Q1 2024 period:

1. Top Concerns: Employee shortage and inflation persist as the primary concerns for businesses, underscoring the challenges in staffing and managing operational costs.
2. Government Priorities: Lack of good governance and overpopulation have emerged as paramount issues surpassing inflation, signaling businesses’ urgent call for government intervention in addressing systemic challenges.
3. Investment Uncertainty: A prevailing sense of uncertainty looms over businesses’ investment plans for the upcoming year, reflecting cautious optimism amidst economic fluctuations.
4. Common Challenges: Regardless of size, businesses echo concerns over employee shortage, inflation, and unfair competition, indicating widespread challenges cutting across different sectors.

Additionally, with regards to their views when it comes to EU representation on their need, EU level, the SME Barometer reveals:

Representation Concerns: A majority of businesses express dissatisfaction with their representation at the EU level, emphasizing the need for more effective advocacy and engagement.

EU Election Priorities: Rising prices, inflation, and the cost of living emerge as the pivotal topics for discussion in the upcoming European Parliament elections, reflecting shared concerns over economic stability and affordability.

In light of these findings, the barometer offers strategic recommendations to address pressing issues:

Population Management: Urgent strategies to tackle overpopulation and attract foreign talent are recommended to alleviate demographic pressures and bolster workforce diversity.

Financial Relief Measures: Proposals to reduce taxes and Value Added Tax (VAT) aim to inject liquidity into SMEs, facilitating cash flow and enabling sustainable growth.

Procurement Reforms: Advocacy for public procurement reforms seeks to streamline processes, enhance transparency, and create a level playing field for businesses.

Overall, the SME Barometer® Q1 2024 Report presents a comprehensive snapshot of Malta’s SME landscape, outlining areas necessitating governmental and EU-level action to fortify business resilience and foster sustainable growth.

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About MISCO:

MISCO, a renowned research and consultancy firm, specializes in providing actionable insights and strategic solutions to empower organizations across various industries.