In general, Malta provides the right environment for small companies to thrive, though the market is small and the competition fierce. The trick is to be creative and improvise. This is the assessment of Kenneth Bone, managing director of Seasus Ltd, the winner of no less than three awards at the first edition of the eBusiness Awards recently organised by the Malta Communications Authority. His company was recognised for best use of online media and for its championing of ICT, which then led to it to garner the overall winner award.
For the past 15 years, Mosta-based Seasus has provided services based on internet technologies. Their latest products include online payment systems, software development, mobile applications, and custom-made apps for social media, especially Facebook, which made the company successful at the awards.
i-Tech spoke to Mr Bone about the opportunities and challenges facing a small ICT company like Seasus.
“Larger companies may have dedicated resources in various fields, but with a small staff complement, you always have to be inventive and improvise to resolve unforeseen problems and address peculiar client requirements up to their expectations. Administration for instance, can be quite a burden, especially when dealing with lengthy bureaucratic processes on an ongoing basis. Sometimes you have to be a ‘jack of all trades’, from financial controller to systems analyst to sales manager, which can be very tiring and takes away focus from core activities.
“Finding the right staff can also be quite challenging since the ideal candidates would need to have a wide range of skills. The Maltese market is also extremely small and competition is fierce, particularly on pricing. Tapping into foreign markets can be a critical success factor,” Mr Bone said. Though Seasus operates in one of Malta’s most successful sectors, each year registering significant growth in terms of turnover and employment, the ICT industry in Malta has its peculiar circumstances that have to be addressed.
“I believe the challenges for a small ICT SME in Malta are not very different from those faced by SMEs in other fields. Being an SME in this industry is a blessing in disguise. Armed with dedication, knowledge and a little luck, the rewards can largely outweigh the problems. In general, Malta provides the right environment for such companies to thrive. To begin with, it is relatively easy to market and provide services globally, with very competitive prices.
“Over the years, we managed to build a healthy client base in mainland Europe, the US and as far as Thailand, just through online marketing channels. Tapping into these foreign markets allows us to delve into more experimental projects than what the local market is accustomed to and with budgets that would often be prohibitive for local companies. There are also endless ways to network with other SMEs in mainland Europe particularly through EU project instruments which allow small companies to participate in large projects with their niche expertise. There is definitely no lack of opportunity out there.”
While Seasus works hard to find such opportunities, Mr Bone is grateful that there is support from such entities as Malta Enterprise, which also supports companies that need IT services. However he advocates a change in mentality.
“Through other activities aimed at attracting foreign investment, such as tax incentives and online gaming legislation for instance, Malta has become a very attractive destination to set up a business. And most of these businesses opt for local suppliers with regards to ICT services. So from that perspective, it is very fertile land.
“We were seriously considering moving to SmartCity Malta in 2011. It is a spectacular location, but comes with some inconvenience. It is predominantly a real estate development project with little or no incentive for the local ICT industry. I’m sure the current global economic status had a substantial impact on the slow start of SmartCity, which was of course difficult to predict.
“Over the last decade there was also a very intense drive in ICT education, particularly at MCAST, which is producing a steady yearly supply of ICT graduates. What may be lacking is a more entrepreneurial attitude across the board. In general, the country still thinks in a predominantly ‘colonial’ way, trying to attract large ICT multinationals and bluechip companies to set up shop in Malta primarily to address employment.
“This is not much different from the 1970s and 1980s when the country attracted manufacturing firms. Whilst this is of course also important in terms of employment, it should be done in parallel with a more concerted drive towards research and development, putting the country on the map as an innovator in ICT, not just a ‘manufacturer’.”
An area witnessing a lot of innovation right now is social media, which has taken Malta by storm. Indeed Seasus was one of the pioneering ICT companies in Malta to develop apps for Facebook and support online marketing. One of these apps was created for L-Istrina, which raised €31,000 in aid of the Community Chest Fund. Property Book, recognised at the eBusiness Awards, is a Facebook application that allows members to promote their property for sale on the world’s largest social network.
“Social media is having an enormous impact on society at large. It is fundamentally changing many aspects of our life, from how businesses attract new customers and retain existing ones, to our social life, to politics. Put to good use, social media can be a fantastic tool. Unfortunately, many still do not understand the dangers and pitfalls that come with it. Data privacy on such networks is of course a very hot topic and many users still post personal information publicly, without much regard to the possible consequences.
“Bottom line, unless you are comfortable with what you are about to post being featured in the evening news, just don’t post it. Many businesses have also realised the potential of Facebook and are active on it, in most cases with very positive outcomes. But again, many do not understand the possible consequences of a social media marketing campaign going wrong. Businesses should be geared up to handle responses from these media effectively,” concluded Mr Bone.