The Government plans to propose legislation in favour of a Family Business Act, Economy and Small Business Minister Chris Cardona told family firm leaders at a seminar.

Dr Cardona said the Government strongly believed that family businesses are the backbone of the economy and the catalyst for economic growth and job creation.

He was addressing a family business seminar organised by the Malta Association of Family Enterprises in collaboration with Znanie Association at The Palace hotel in Sliema. It was themed The Knowledgeable Family Enterprise: Driving Creativity and Profitability.

Last year, MAFE presented both political parties with recommendations for legislation in favour of family enterprises following extensive discussions with stakeholders and with the assistance and experience of the Scottish Family Business Association.

Association president Mario Duca spoke of the challenges faced in family-owned firms and how they differ consid-erably from those in other companies due to the interlocking relationships between the family, business and ownership structures.

Mr Duca noted that family businesses are often asset-rich but cash-poor as they are more likely to invest their income back into the family business.

MAFE board secretary Jean-Philippe Chetcuti noted that legislating in favour of family enterprises would provide the structural support that enables family enterprises to grow and flourish through generations.

A panel discussion later highlighted the importance of supporting the family enterprises’ structures through different mediums and through the provision of funding for further investment in training, governance and growth.

MAFE was set up in 2011 by a group of family business owners to address the current obstacles to the governance and transfer of family businesses through generations and provide support, training and networking opportunities for family firms.