Malta should encourage the creation of a local crowdfunding platform to help start-ups gain access to finance, according to MEP Miriam Dalli.
Speaking earlier today at the launch of a series of proposals and recommendations on boosting youth entrepreneurship, Dr Dalli said it was important to promote alternative financing methods as bank lending was becoming more difficult in the early stages of a business venture.
Crowdfunding involves raising funds through small contributions from a large group of people, usually in exchange for a reward.
Platforms like Kickstarter and Indiegogo have exploded in popularity in recent years, and a number of Maltese start-ups have already used them to successfully finance their ventures.
Dr Dalli also proposed incentives for private individuals to act as ‘Business Angels’ for new enterprises, providing mentoring, guidance and angel finance.
Moreover, she said, there was a need to drastically change Malta’s entrepreneurial culture to encourage more people to start their own businesses and to ensure that failure and risk-taking were not too harshly penalised.
“We need to reduce the bureaucracy around our bankruptcy laws to ensure that honest entrepreneurs can make a fresh start,” she said.
The report, which is the result of a consultation process with the Chamber of Commerce and student organisation Aegee-Valletta, also proposes the introduction of entrepreneurial skills as a subject in primary education, and increased on-the-job training in secondary schools.
Dr Dalli highlighted a number of practical initiatives to help young entrepreneurs make contacts in the early stage of their careers.
She suggested ‘start-up accelerators’, which would involve mentoring and a presentation to potential investors, and speed networking, to enable entrepreneurs to present their proposals to established businesspeople in a few minutes.
Also addressing the press conference were Education Minister Evarist Bartolo and Economy Minister Chris Cardona, as well as a representative of Aegee-Valletta.