To keep our economy nimble and performing well, we should be brave and support tech start-ups, Bernard Agius says ahead of Zest conference

What are tech start-ups and why are these important for Malta?

Tech start-ups are companies that are born global with the aim to scale fast. They typically leverage on technology to disrupt mature markets or sometimes develop new niches. Spotify, Netflix and AirBnB are all big names with a global stature, but all have one thing in common: all had humble, but ambitious origins and scaled up quickly causing substantial disruption in their respective markets.

Tech start-ups are not just a Silicon Valley concept and are thriving in Europe. Malta is no exception and has some extremely interesting success stories to tell. Hotjar is one local start-up where technology has indeed broken borders.

Why are tech start-ups important for Malta?

Malta is an ideal location for tech start-ups and more activity in this regard can bring about important economic development. In the context of a consolidating global economy dominated by global corporates, Malta can make itself more relevant if it can nimbly give space to smart entrepreneurial brains, which may not necessarily be Maltese, to build new businesses and innovate. This is a new way of creating business value. Irrespective of how the business can evolve, the Maltese economy would benefit directly and indirectly, in so many ways, throughout the process.

What should Malta do to grow a tech start-up culture?

Primarily, we need to give the opportunity and space for homegrown ideas to develop and mature. This requires an environment that features both support and a general entrepreneurial mindset. Great strides have been made in this regard, but much more can be done to continue cultivating this environment.

A number of public and private structures have emerged over the years. The Takeoff Business Incubator at the University of Malta, the MITA Innovation Hub and the Microsoft Innovation Centre each provide space and support to start-ups. Support has also come through early funding, education and mentorship programmes. However, Malta still needs an accelerator, preferably privately run to ensure sustainability.

One of the major barriers that remains is the general mindset towards entrepreneurship. Maltese youths appear to be drawn to a comfort zone – a no risk mentality. While having no doubt on the capacity of the next generation, more aptitude for adventure and risk taking is desperately needed if we aspire to keep a small, yet nimble, well-performing economy that is distinguished from the rest of the world. Programmes coordinated by Junior Achievement Young Enterprise (JAYE), and the Budding Rockstars event are all helping to develop such a mindset.

Diversity of mindsets and talents can only serve to enrich the community’s effectiveness

What we have also come to realise is that despite the high level of activity on the start-up scene, unlike other more mature start-up ecosystems, we still lack a strong-bonded, close-knit community. This is where we want to intervene as an authority, in facilitating this network.­

It is important to underline that Malta is already home to a large expat community that brings with it talent and experience, which must be welcomed with open arms. Diversity of mindsets and talents can only serve to enrich the community’s effectiveness.

Why can Malta be attractive to tech start-ups?

It is no big secret that start-up activity tends to intensify in hubs such as London and Berlin. This does not mean that a small country like Malta cannot be as appealing.

Malta is a very interesting place for tech disrupters who find Malta amenable to their budding business concepts. Two key factors contribute to Malta’s attractiveness.

First, Malta’s nimbleness facilitates novel business ideas for global outreach. The financial markets and the gaming sectors are testament to this. Malta can gain a competitive edge if it can deal effectively with start-up equity, intellectual property, failure, and the acquisition of talent from third countries.

Secondly, Malta is a good place to be in terms of both starting a new venture and the lifestyle. It is safe, has an English speaking community, is cost effective, well connected, and has an idyllic climate. Clearly many Nordics, talent and entrepreneurs, tend to get seduced by the prospect of living and working here.

Within this context, what role does Zest event play?

Zest is all about building this tech start-up community. So while a lot is already happening, we want this event to serve as the meeting point where all those involved can meet and connect.

We are doing this with the support of the Takeoff Business Incubator and many other players on the market. We want to use this event to educate newcomers, especially youths who are attracted to tech entrepreneurship, possibly enabling them to link up with others, propose ideas and gain feedback. We are also engaging corporates and specific public entities, as we want them to understand the start-up concept and also connect.

We also want this event to serve as a showcase for homegrown success stories. We feel that Zest will give Malta an opportunity to present itself as a start-up friendly place, possibly attracting more activity and talent to base operations here.

What should participants look forward to at Zest?

Zest is a first for Malta with over 250 participants talking technology disruption and start-ups. The event programme will feature over 40 speakers, mostly CEOs, business mentors, investors and journalists, many of whom are flying in from places such as London, Berlin, San Francisco, Cairo and Tallinn. A number of Maltese start-ups will also be exhibiting their start-up concepts in the demo area.

A first for Malta is also the Zest after-party which will take place on June 27 at Medasia Playa. The sea and the Maltese summer will serve as a background for a casual networking opportunity with the speakers, investors and the brightest talent on the island.

Bernard Agius is business and innovation development manager at the Malta Communications Authority. He will speak at Zest, a two-day conference and networking event focused on breaking borders on June 27 and 28 at the Westin Dragonara Resort, St Julian’s. Zest is being organised by the Malta Communications Authority in collaboration with Takeoff Business Incubator. Times of Malta is media partner for Zest. For more information, visit www.zest.org.mt.