A survey carried out by the Europe Startup Nations Alliance (ESNA) among 21 EU countries placed Malta as the 4th best destination for innovative startups. This emerged from the first technical analysis of its kind by the startup-centric entity created by the European Union. Malta Enterprise represents Malta in ESNA.
Malta was only topped by larger countries such as Spain and France, together with Belgium and was among only 10 countries that exceeded the average percentage ratings of this analysis. The Startup Nations Standards are 8 standards of excellence in the field of support to startups. Spain and France obtained the best ranking with 87%, followed by Belgium and Malta scoring 74% and 73% respectively.
Malta garnered a 100% mark – and topped all other countries – in 3 specific areas. These are the attraction and ability to retain new talent in Malta; digital tools as main communication tools between startups and government entities; as well as the shortest time to register a new company. Malta also compares well on the creation of innovative laws regulating emerging sectors.
On the other hand, Malta needs to improve further on aspects such as access to finance and employee share options. To this end, Malta Enterprise is preparing a Startup Framework intending to usher an improved legislative dimension for start-ups and start-up investors.
Malta Enterprise is also continuing to strengthen its incentives such as BStart and Startup Finance which lead to assistance up to a maximum of €1.5 million. In terms of wider financing, the Government has recently announced the creation of a €10 million Venture Capital Fund to assist innovative startups.
Malta Enterprise, via the ‘StartinMalta’ brand, has been working to create synergies amongst Government and private entities – to provide a unified voice in relation to startups.
Minister for the Economy, Enterprise, and Strategic Projects Silvio Schembri welcomed this result saying that this will further drive efforts by Malta Enterprise and other entities to attract the best international companies and bolster Malta’s entrepreneurial spirit at home.
“We welcome such a report which on its end instils greater energy in our efforts to make life easier for startups in Malta. These are companies that employ fewer individuals but pay better wages. In fact, we estimate that the average wage of workers with start-ups assisted by Malta Enterprise varies between €40,000 and €60,000. Malta Enterprise has approved 60 such projects over the last few years – projects that are expected to generate hundreds of jobs of this kind. Through our national Startup Framework and the first investments from the Government’s own Venture Capital fund – we will continue supporting those who are ready to innovate and improve lives globally via Malta,” stated Minister Schembri.
Malta Enterprise CEO Kurt Farrugia stated “Through the National Startup Framework we will change several laws following a consultation process with startups themselves. This shall reduce bureaucracy, incentivise investment and further strengthen the financing for startups while facilitating employee shareholding opportunities. We also need to advance our work to our local ecosystem via the Startup Festival and from this year the EU Startups Summit – which will be held in Malta for the first time this year after ten years hosted in another European country.”
Photo: MEEP
