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BUSINESS AGENDA | Oct – Dec 2010
interview balisation, readjusting production processes and the shift to a lowcarbon economy, just to name a few,” he continues. Like the rest of Europe, Malta’s business community is mainly characterised by small and micro companies which are set to benefit from such initiatives. Commissioner Tajani also points out that not only will he be working to assist existing enterprises, but promoting and boosting entrepreneurship will also be a top priority of his mandate. “Small businesses are run by dynamic entrepreneurs, who in turn are the job generators of Europe,” he states. “If we want to stimulate growth in Europe, it is from SMEs that we must start. Several actions are ongoing to achieve this goal: SMEs week 2010, the Small Business Act for Europe (SBA), the adoption of the Late Payments Directive and improved access to finance. We've started the year with work on tourism and on clean and energyefficient cars, but there's much more work that needs to be done.” This statement will certainly find favour with business across Europe, especially SMEs which often struggle to keep up with the economic challenges that they have undoubtedly crossed paths with in the last few years. One area that the local business community is constantly seeking assistance for is the maze of EU funding opportunities which, while abundant, often viewed as complicated and bureaucratic. “Access to finance is vital for every business, whether it requires start-up cash or for expansion,” Commissioner Tajani acknowledges. “The EU provides finance for small firms in different forms - but not all of these are sufficiently tapped by entrepreneurs and perhaps we need to work better in our ‘marketing strategies’ to attract entrepreneurs into using these funds. But when we talk of funding for SMEs we shouldn't just stop at EU money. Access to finance also means money made available through banks and other ventures.”
In this respect, the Small Business Act will certainly prove beneficial. One of its key objectives is to improve access to finance for SMEs. Commissioner Tajani explains that in a recent European Central Bank survey, 18 per cent of small enterprises reported a rejection of their bank loan application. Up to 2 per cent desisted from taking up the loan offer, considering the price too expensive, while small enterprises in the services and construction sectors were the least successful when applying for a bank loan. “To overcome these barriers to growth, I am working to allow a permanent dialogue on this topic between financial institutions and SMEs,” he explains. “I have now established a high level group of experts that will follow this issue closely, with their main objectives, amongst others, being to strengthen the collabora-
“Access to finance is vital for every business, whether it requires start-up cash or for expansion. The EU provides finance for small firms in different forms - but not all of these are sufficiently tapped by entrepreneurs and perhaps we need to work better in our ‘marketing strategies’ to attract entrepreneurs into using these funds.” tion between European banks and SMEs, strengthen the collaboration between the European Commission and the European Investment Bank with the objective of maximising the effectiveness of financing programmes for SMEs, recommend measures to create a real single market for venture capital, review listing requirements of SMEs for stock exchange listings and improve liquidity in those markets.”
MBB salutes the memory of Guido de Marco I was fortunate enough to know Prof. Guido de Marco personally and I even had the opportunity to spend quite some time with him. Prof. de Marco was a mentor to me and many others in more ways than one; he showed great personal interest in my projects and his fatherly advice was always invaluable. He was also a mentor on life and on dealing with people. To him nobody was an adversary; rather, he respected the fact that people had different opinions and he would
unfailingly reach out to them with persuasion and perseverance. Back when I first got to know Prof. De Marco, little did I know that one day I would be presiding over an organisation that fitted well within one of his own dreams, that of seeing Malta as a Member State of the European Union. When he was appointed as Minister of Foreign Affairs in September 1998, he presented Malta's request for the reactivation of its application
for membership to the European Union. Had it not been for the vision of Prof de Marco and his colleagues, the Malta Business Bureau would not exist today. On behalf of the MBB Board of Trustees and the Executive Team, I salute the remembrance of Prof. de Marco and his everlasting memory.
John A. Huber President, Malta Business Bureau
Access to finance, which will enable business organisations to invest, innovate and grow, is certainly essential for the future health of Europe’s economy. Not only does the European business community have to come to grips with a new economic playing field that is taking shape in the wake of the economic recession, but it must also contend with hard competition from other global players.
In this respect it has been widely accepted that Europe’s strategy towards ensuring its competitiveness lies in concentrating on quality, knowledge, research and innovation and Commissioner Tajani clearly states that Europe’s industrial and entrepreneurial base is key to the future development of the European Union. “We need it to be more competitive and more innovative... this is where we have an advantage that needs to be fully exploited,” he concludes.