Market Gaps on Access to Finance - Bank of Valletta

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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 Page | 16
Malta Business Bureau – <strong>Market</strong> gaps in access to finance April 2013 Trade Promotion (Sept 2010 – Dec 2013) – this incentive supports enterprises 32 to establish international business contacts. Aid is provided to enterprises participating in international trade fairs or trade promotion events for the launch of a new product or existing products in a new market. Network Support: Business Networks (Jan 2008 – Dec 2013) – this scheme provides cash grants to support business networks made up of between 3 and 10 independent enterprises working together to achieve a specific business objective. Network Support: Development Networks (Jan 2008 – Dec 2013) – this scheme provides part-financing of eligible costs related to development networks that bring together at least 10 enterprises operating within the same sector 33 or having complimentary activities for the purpose of achieving collaborative and collective development. Quality+ (Jan 2012 – Dec 2013) – deduction from taxable income to encourage selected SMEs 34 to improve the quality of their products, services and processes by achieving quality certifications and quality marks, environmental certifications, franchise licences and licences required for participation in a value chain. Get Qualified – tax credits of up to 80% on the fees paid are available to support individuals who embark on personal development on their own initiative. These tax credits are available to individuals undertaking courses in selected sectors 35 . Business Development Scheme (Jan 2008 – Dec 2013) – this scheme provides assistance to high value added projects/ enterprises to set up in Malta, and is therefore targeted at Foreign Direct Investment (FDI). ME also provides assistance to enterprises targeted at R&D initiatives, including: Grants to support enterprises in undertaking preparatory technical feasibility studies Grants to support SMEs in temporarily engaging highly qualified experts R&D tax credits Collaborative R&D grant scheme for enterprises carrying out a research project in collaboration with other enterprises under the EUREKA and EUROSTARS pan-European initiatives ERDF R&D Grant Scheme for enterprises carrying out industrial research and/ or experimental development activities Grant to support the setting-up, expansion and animation of innovative clusters and collaborations promoting industrial research and experimental development. Tax Exemption on Royalty Income from Patented Intellectual Property ME also manages the Kordin Business Incubation Centre (KBIC), where a formal incubation period ranging between a minimum of one year and a maximum of three years is set. The target industrial group focuses on engineering design and development of equipment systems, renewable energy resources, biotech projects, and other innovative projects. The 2013 Budget Speech also announced the B.START initiative to further encourage start-ups and to incentivise established businesses concerns to invest in seed capital in new companies. Through this scheme, established business concerns will be given a reduction in tax up to a maximum of €30,000 on capital investment in new enterprise approved by ME, thus creating an opportunity for crowd funding 36 . 32 All enterprises engaged in manufacturing, industrial services, ICT, biotechnology, or in other innovative or high value adding operations. Enterprises excluded include enterprises engaged in fisheries, agriculture, processing of agricultural products which are classified to fall under specific cases and companies in difficulty. 33 Same sector eligibility for Network Support grant schemes as that of the Trade Promotion incentive. 34 All SMEs except for voluntary organizations, enterprises engaged in fisheries, agriculture, processing of agricultural products which are classified to fall under specific cases, companies in difficulty and enterprises engaged in real estate, gambling, financial services and/ or insurance, trading or manufacture of arms and military equipment. 35 Aviation industry, chemical and pharmaceutical industries, economics and statistics, financial services, crafts and creative industries, ICT, business process outsourcing, and industrial electromechanical engineering 36 Ministry for Finance (2013), Budget Speech 2013 Page | 17
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Structural Funds. Specifically, the
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consideration the importance of “
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6.3.6.5 Credit guarantees: In many
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European Economic and Social Commit
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Please provide your comments for Qu
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- Oħrajn (Speċifika) ____________
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Q1 - Who are the owners of your fir
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B: EU funds- Economic Sector Manufa
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E: Trade Credit- Firm Size 1 - 9: M
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G: Leasing/ hire-purchase/ factorin
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A: National Grants/Pu blic aid C: B
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Market Gaps on Access to Finance - Bank of Valletta

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