This government is leaving no stone unturned to generate the best climate for growth to take place and thus, jobs.
In these last four years, against all odds, in spite of the Opposition and in the midst of the worst financial and economic crisis of the last century, 20,000 new jobs were created in the private sector. This is no mean feat. Many of these jobs are in the small business sector and the self employed and a direct result of government schemes and initiatives to spur growth.
Thus, thanks to a tax credit scheme called Microinvest, which we have extended through to this year, in the last two years alone more than 1,300 micro businesses (employing less than 10 employees) have benefitted from up to €25,000 each in tax reductions, generating 247 new jobs and investing almost €16 million in our economy. A total of 250 businesses, many of them small, have benefitted from Microcredit, giving them up to 10 years to repay and requiring low collateral. These are investing no less than €38 million in the economy. All this in less than a year since its launch.
We have also granted €42 million in ERDF funds to small businesses so that they can meet the challenges of competition. As a result over 770 enterprises, most of them small, have been on the receiving end of this unprecedented aid, generating even more jobs.
Last January, Minister Fenech and I launched Business First, a first rate, one-stop shop offering more than 50 government services under one roof, allowing our small businesses to gain precious time and avoid time wasting. To date more than 3,000 enterprises, most of them small, have made judicious use of this service.
We are not resting on our laurels. We want to give more space and reduce unnecessary red tape for our small businesses which have little time to spare for unnecessary form filling.
This comes across from the several weekly visits to shops and the self-employed. Recently I visited shops and met several self-employed persons in Sliema, Mosta, Valletta, San Gwann and Paola. Unnecessary red tape is often mentioned as stifling. We have done a lot to reduce it, especially through the e-government services.
But we know more can be done, even if it may be a tall order.
It is with this thought in mind that we recently launched a six-week consultation period to further slash bureaucracy. We want to encourage more small businesses to be set up and to facilitate this process we are proposing a series of bold and radical changes, some of which have evolved from our meetings with small enterprises.
We are putting forward several innovative ideas that will further reduce bureaucracy in a substantial and unprecedented way, thus enabling entrepreneurs to establish their business faster.
Our proposals include (i) the removal of the need to apply for a commercial licence in 80 per cent of present cases requiring such a licence with the Commerce Department. Instead, a mere notification to the Commerce Department will suffice 30 days before the commercial activity commences; (ii) Payment to the Commerce Department to be submitted together with the notification instead of waiting for the department’s request, thus saving time; (iii) The removal of the present obligation to submit a Mepa certified copy of the permit and floor plan. Thus the Mepa permit number will suffice; (iv) A reduction in the licensing fees for manufacturing activities and a capping of the licence payable where the premises are over 800 sq.metres. A minimum of €164 will be saved annually (v) Annual payments payable only up to the cessation of activities instead of the date of cancellation of a licence, thus making the system more just and humane since an operator might have passed away with arrears accumulating onto the unsuspecting heirs.
These measures will further incentivise more individuals to set up their own business. They will give more breathing space to small businesses. They will create more jobs and generate more growth.
Feel free to e-mail us till the end of May on commerce@gov.mt and let us know what you think. We want you to help us help you to give a blow to bureaucracy. We owe it to our small businesses.
jason.azzopardi@gov.mt
Dr Azzopardi is Minister for Fair Competition, Small Business and Consumers