Approximately three quarters of Malta’s businesses are family owned businesses. Despite that, only 30% of these businesses succeed to the next generation.

The discussion held during this year’s SME Week between the Family Business Office and several stakeholders, was a perfect platform to imprint the importance of family businesses, and how such entities had to rapidly transform their business models to combat the challenges posed by COVID-19.

“We can look at 2020 as the year of setbacks, or we can define it as a test to adapt, innovate and diversify our strategies,” stated Dr Joseph Gerada, Regulator at the Family Business Office. Dr Gerada emphasised that family businesses can avail themselves of a network of support incentives proposed by key stakeholders such as banks. “Currently, there are 188 registered family businesses in Malta, and our aim is to support these businesses and encourage other SMEs to register as well.”

“Family owned businesses tend to be the most resilient and adaptive entities as they operate for the long term” highlighted Albert Frendo, Chief Credit Officer at Bank of Valletta. When asked about the bankability of such businesses, Mr Frendo replied that this ultimately depends on the nature of the business, their financial management, efforts to rejuvenate themselves, and the governance and vision they propose for the future. “Not only are these businesses bankable, if they are inherently sound but we are there to help them take the necessary tough decisions to ensure their ability to grow and prosper,” concluded Mr Frendo.

The BOV Family Business Success helps certified family businesses take the strategic leap to transfer ownership to next generations or shareholding between members. It is a product of innovative financing solutions to assist SMEs in facing adversity and regenerate themselves in difficult times.

Information about registering under the Family Business Act and other initiatives for family businesses can be found at www.familybusiness.org.mt.

 

Issued by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130.  Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap.371 of the Laws of Malta).

'Credit & Financial Institutions' Related News Articles

01
2021 Industry Outlook – Analysis of how sectors are positioned for recovery
Western Union Business Solutions

by Western Union Business Solutions

5th February 2021

BOV Staff donate 300 boxes of food and € 5,000 to the Foodbank Lifeline Foundation and St Jeanne Antide Foundation
Bank of Valletta

by Bank of Valletta

4th January 2021

Bank of Valletta to launch Energy Efficiency and Renewable Energy Financing Product
Bank of Valletta

by Bank of Valletta

18th December 2020

What to expect: BOV, Malta Chamber and Saxo Bank debate on the future of businesses
Bank of Valletta

by Bank of Valletta

29th September 2020

Blue Sky or Eye of the Storm? A Free webinar for Businesses by BOV, Malta Chamber and Saxo Bank
Bank of Valletta

by Bank of Valletta

14th September 2020

Internal Governance considerations for credit institutions: the EBA report on the 2019 supervisory convergence plan
Ganado Advocates

by Ganado Advocates

17th July 2020