More than half of Malta’s family businesses are seeing their profits stagnate or even decline

The news that more than half of Malta’s family businesses are seeing their profits stagnate or decline is worrying and shows that these small companies are not feeling the benefits of the economic growth the Government so often boasts about.

In light of the warnings issued in recent days about the country’s financial and economic situation, just weeks before the Government presents its budget for next year, the outlook for these small businesses does not bode well.

The survey published by The Malta Chamber this morning follows the trend identified in the latest SME Barometer, published a few months ago, regarding the outlook for small and medium-sized enterprises. It confirms the uncertainty facing this sector, which is so important to Malta’s economy.

The survey, conducted jointly with EMCS, shows that despite higher turnover, 55% of family businesses are facing costs that are eating into their earnings, leaving their profits unchanged or even lower. Only 37% reported both increased revenue and higher profits.

It is also worrying that family businesses are spending more time on what The Malta Chamber calls “firefighting” than on planning for the future. This means that most family businesses are having to deal with urgent problems and regularly spend considerable time addressing issues that arise from day to day, preventing them from planning for the long term.

The same survey indicates that, in 90% of cases, these problems relate to operations, including staffing issues.

A gap also appears to be emerging across different sizes of family businesses. While both the very small and the large businesses report improvements, those in the middle are suffering the most and falling behind.

This is yet another survey that should open Robert Abela’s eyes to the fact that the reality facing businesses is far removed from the rosy picture the Labour Government tries to paint.

It also further confirms what the Partit Nazzjonalista has long maintained: Malta needs an improved economic model based on quality, one that incentivises family businesses and SMEs, provides the necessary support to improve workers’ skills and, above all, attracts investment.

It is clear that the country’s economic direction is failing to inspire confidence and optimism among business owners.

Indeed, the survey also shows that the greatest challenge facing these businesses is finding and retaining workers, with almost 80% identifying the recruitment and retention of people with the necessary skills as their biggest headache. Another issue highlighted is rising costs, with more than half – 54% –saying that their payroll costs are increasing much faster than their revenue.

For years, the Opposition has insisted that the Government address the various challenges facing this sector and has put forward proposals to ensure that the Maltese people no longer have to contend with problems and challenges created by the Government itself. Unfortunately, however, every proposal put forward by the Opposition has been ignored by the Labour Government.

Michael Piccinino
Shadow Minister for the Self-Employed, Small Enterprises and Cooperatives

Darren Carabott
Shadow Minister for the Economy, Technology and Strategic Projects

01.10.2026