Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
4. Study methodology
The following section presents the main methodology adopted for the data gathering aspects of this
study. In order to assess the existing market gaps for Malta-based SMEs to obtain financing beyond
the “traditional” bank loan facilities, the study uses a mix of stakeholder consultation and a survey
with business owners/ managers.
4.1 SME survey
A survey was conducted with 100 SME owners/ managers, covering different enterprise sizes
(micro, small and medium), business lifecycle stages, and economic sectors.
4.1.1 Sample size
The sample size was based on the following criteria:
Population of SMEs in Malta: as explained in Section 2.1, this stands at c. 35,000 (after
excluding agriculture, fishing and non-market service such as education and health)
Population of member firms in the parent organizations of the MBB, that is the Malta
Chamber and the MHRA
Sampling error of ±10%, which is deemed acceptable for the purposes of this survey.
Based on a population-sample formula 91 a sample size of 100 was established. This represents the
number of actual interviews achieved, independently of the eventual take-up/ response rate.
Various studies have used different firm distributions by size 92 . Likewise, the number of SMEs by
sector is highly dependent on the correct classification by NACE code. In terms of lifecycle, there
are various definitions of firm lifecycle stages, and no national data on the lifecycle of the local SME
population exists. SMEs were chosen at random from the latest membership database of the MBB’s
parent organizations, the Malta Chamber and the MHRA, using a random number generation
technique to determine the members selected. The resulting distribution by size, lifecycle and sector
was therefore reflective of the type of Malta Chamber and MHRA members. The survey excluded
firms engaged in agriculture, fishing, aquaculture, public administration, social enterprises
(including cooperatives) and NGOs. Additionally, in order to ensure representation by start-ups, the
sample was supplemented with SMEs who had successfully applied and obtained funding through
ME’s ERDF Small Start-up Grant Scheme 93 .
All respondents were screened to ensure that only the persons most knowledgeable about the
financial situation of the firm were interviewed. Participating job functions included Managing
Director/Owner/Proprietor, Chief Executive Officer and Chief Financial Officer/Head of Finance.
4.1.2 Data gathering techniques
100 interviews were conducted with randomly-selected Maltese SMEs between 16th January 2013
and 28th February 2013. The interviews were conducted using a mix of Computer Assisted
Telephone Interviewing (CATI) methodology and one-to-one interviews.
91 n = N / (1+N(e 2 )) and n = n0/(1+((n0-1)/N) for small populations
92 The EC’s SBA Fact sheet for 2012 refers to a distribution highly skewed towards micro-enterprises (Micro-enterprises:
95%; Small enterprises: 4%, Medium enterprises: 1%). On the other hand, the SAFE survey for 2011 adopted a more normally
distributed sample (Micro-enterprises: 29%; Small enterprises: 44%, Medium enterprises: 28%)
93 http://www.maltaenterprise.com/en/support/erdf-small-start-grant-scheme
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