Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
SME Development Grant (Sept 2010 - Dec 2013) – this incentive is aimed at assisting SMEs
in the first time participation in trade fairs or in acquiring technical assistance from external
experts. Assistance is provided on actions to diversify, establish new markets, increase
competitiveness, develop new products and services, and consolidate existing market share.
Through this incentive eligible enterprises are provided with part financing. The selected
sectors are the same as those applicable for the Exploratory Award.
In addition to SME-specific support measures, other ME enterprise support measures are equally
applicable to SMEs and include 26 :
ERDF Energy Grant Scheme (Jan 2010 – Dec 2013; no calls are currently available) –
scheme designed to assist enterprises to make use of alternative energy technologies.
ERDF International Competiveness Grant Scheme (Jan 2010 – Dec 2013; no calls are
currently available) – scheme to support enterprises to tap into new international markets.
This incentive supports enterprises to extend their activities in new markets or to introduce
a new service or product in an existing market. This assists enterprises reduce their
dependence on the local market and facilitate the exploration of inter-regional cooperation
opportunities by reducing the risk involved in expanding into new markets.
Business Advisory Services (Feb 2009 – Dec 2013) – this scheme is designed to provide
enterprises with customised mentoring services that suit their particular requirements. The
business advice offered can address a number of areas key to the development and growth
of the enterprise, such as adopting innovation management techniques, improving
competitiveness and optimising energy utilisation. It is applicable to most enterprises 27 and
is capped at €2,500 pa.
MicroInvest Scheme (Jan 2010 – Dec 2013) - provides tax credits to support micro
enterprises employing less than 10 people and the self-employed invest in their business,
innovate, expand, implement compliance directives and/ or develop their operations. Micro
enterprises and self-employed are supported through a tax credit representing a
percentage 28 of the eligible expenditure and wages of newly recruited employees and/ or
apprentices. It is also applicable to most enterprises 29 . This scheme was referred to as an
example of “best practice” in the EC’s SBA Fact Sheet for Malta covering the period
2010/11 30 . The 2013 Budget considered extending this scheme for a further two years and
extending eligibility to businesses employing up to 30 people.
CREATE (Jan 2010 – Dec 2013) – this tax credit provides an incentive to support creative
businesses 31 whose economic performance is directly linked to the creative talent of those
involved in the business. Further support is provided to help the development of creative
communities in specific artistic zones. Costs related to the development and publication of
creative work is eligible for aid under this incentive.
(excluding gaming and telecommunications); R&DI; waste treatment, environmental solutions and eco-innovations;
biotechnology and other start-up enterprises proposing innovative products, services and process development.
26
www.maltaenterprise.com
27
All enterprises except for public entities, voluntary organizations, enterprises engaged in fisheries, agriculture,
processing of agricultural products which are classified to fall under specific cases and companies in difficulty.
28
40% for Maltese firms or 60% for Gozo firms, in both cases capped at €25,000
29
All enterprises employing not more than 9 persons and with a turnover not exceeding €2 million, and excluding public
entities, voluntary organizations, enterprises engaged in fisheries, agriculture, processing of agricultural products which are
classified to fall under specific cases and companies in difficulty.
30
European Commission (2011), SBA Fact Sheet – Malta 2010/11
31 All creative enterprises except for restaurants, cafeterias, retail and wholesale, cinemas, provision of premises,
equipment and facilities, and other logistical support
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