Ninety two per cent of family businesses in Malta want a simplification of business tax rules as well as a reduction in the tax burden, according to the PricewaterhouseCoopers Family Business Survey 2010/11. On a global level, the figure is 82 per cent.
A high proportion of all respondents, 79 per cent in Malta and 56 per cent globally, favour a tougher corporate compliance environment. “The virtual collapse of the banking system in 2008 may account for this response. Many commentators have argued that one of the main causes of the financial crisis was inadequate or outdated regulation,” PricewaterhouseCoopers said.
Fifty four per cent of Maltese respondents and fifty per cent family businesses globally believe better links between industry and universities for product development were needed.
Only 35 per cent of Maltese family businesses (37 per cent globally) are concerned with getting greater access to the capital markets.
“There are obvious reasons why relatively few entrepreneurs should be interested in floating their companies at present, of course. Although the number of initial public offerings has increased lately, the sovereign debt crisis in the eurozone, the uncertain pace of the recovery and the limited access to credit have all curbed interest in new offerings,” PwC said.
According to PwC, the precarious state of the global economy probably explains why only 21 per cent of Maltese respondents and 24 globally think their governments have done enough to support the business community during the recession. Furthermore, 65 per cent of Maltese family owned businesses, compared to 47 per cent globally, believe that the initiatives introduced were insufficient. Fifteen per cent of local respondents and 24 per cent globally said the initiatives introduced were inappropriate.
Nearly three quarters of all respondents, both in Malta and globally, report that corporate social responsibility has had a positive impact on their companies. Sixty per cent of Maltese respondents, compared to 48 per cent globally, say they have changed the way they manage their business over the past two years due to corporate social responsibility reasons. Sixty six per cent of Maltese respondents and 49 per cent globally, plan changes over the next two years.
“These people recognise that building a reputation as a responsible business helps a company distinguish itself from the crowd; customers often favour suppliers who demonstrate regard for the environment. CSR can also help a business improve its performance by reducing energy and waste disposal costs, coping with new laws and restrictions more effectively and even developing new products or services,” PwC said. The PwC Family Business Survey 2010/2011 covers small and mid-sized family companies in 35 countries: Austria, Bahamas, Bahrain, Barbados, Belgium, Brazil, Canada, Cyprus, Denmark, Egypt, Finland, France, Germany, Ireland, Italy, Kuwait, Jamaica, Japan, Jordan, Malta, Netherlands, Norway, Oman, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Syria, Trinidad and Tobago, Turkey, United Arab Emirates, United Kingdom and United States.
Interviews with top executives in 1,606 companies operating in 15 industry sectors took place between May 26 and August 17 this year.
PricewaterhouseCoopers considers a family business to be an enterprise in which the majority of the votes are held by the person who established or acquired the firm (or by his or her spouse, parents, children or children’s direct heirs); at least one representative of the family is involved in the management or administration of the firm; and, where the company is listed, the person who established or acquired the firm (or his or her family) possesses 25 per cent of the voting rights through his or her share capital and at least one family member sits on the board.