Malta Don’t let Europe’s businesses perish with their founders
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Malta’s Business Brain Drain: Don’t Let Our Economy’s Foundations Crumble

ByHot Malta

Imagine this: Malta’s bustling Strait Street, once a thriving hub of activity, now eerily quiet. This isn’t a scene from a post-apocalyptic movie, but a reality many local businesses face as their founders retire or pass away, taking with them a wealth of knowledge and experience. According to Malta Enterprise, around 40% of local businesses lack a succession plan.

Malta’s Business Brain Drain

Malta’s economy is booming, but our businesses are aging. Many were started by the ‘baby boomer’ generation, now reaching retirement age. Without a smooth transition of power, these businesses risk perishing, taking with them jobs, investment, and know-how. It’s a silent crisis that could stifle our economic growth.

Local Stories: Lessons Learned

Take the case of Il-Għawdex, a popular bakery in Rabat. When the founder passed away suddenly, the business struggled to survive. The new owners, lacking the founder’s expertise, had to start from scratch. Today, it’s a shadow of its former self. This isn’t an isolated incident. Similar stories echo across Malta, from bakeries to boatyards, from shops to service providers.

On the other hand, there’s the success story of Taste of Malta, a local food tour company. When the founder decided to step back, she groomed her successor over years, ensuring a smooth handover. Today, the business thrives, employing more people and expanding its offerings.

What Can Be Done?

Malta needs a collective effort to tackle this issue. Here are some steps we can take:

    • Education: Raise awareness about the importance of succession planning. Business owners need to understand the risks and benefits.
    • Mentorship Programs: Encourage successful business owners to mentor younger generations. This could be facilitated by organizations like Junior Chamber of Commerce Malta or the Malta Chamber of Commerce, Enterprise and Industry.
    • Policy Changes: Government could offer incentives for businesses with solid succession plans. This could be in the form of tax breaks or easier access to financing.

Let’s not let Europe’s businesses perish with their founders. Let’s learn from our past, plan for our future, and ensure our businesses continue to thrive, creating jobs and driving our economy.

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