A White Paper aimed at helping family businesses transition from one generation to the next was launched today.

Economy Minister Chris Cardona said the legislation was aimed at helping family businesses survive past the founding generation.

Research conducted by the ministry found that while 70 per cent of businesses were family run, less than a third survived past the first generation, he said. fewer than 10 per cent made it to the third generation.

To counter this, Dr Cardona said the legislation would provide a legislative framework to help businesses transition.

Assistance would come in the form a maximum tax credit of €50,000 over a three year period covering investment into the family company.

The White Paper also proposes offering legal and advisory services worth up to €2,500 and free arbitration sittings.

Loan guarantees of up to €500,000 per business for the purpose of acquiring the business or parts of are also being considered.

The White Paper will be drafted into the Family Business Act in the coming months.

Paolo Morosetti, the Director of the Strategic and Entrepreneurial Management Department at the Bocconi School of Management, also attended the launch.

He described the white paper as a global first.

“This is the first piece of legislation of this type worldwide. Many countries will be looking to Malta to see how this succeeds, and we are setting the standards with this law,” Prof. Morosetti said.