The President of the Malta Chamber of SMEs has stressed the importance of supporting small businesses, arguing that if they are lost, then the country would also lose its character.

During an interview with WhosWho.mt, Chamber of SMEs President Paul Abela was asked about the spread of large supermarkets and shopping malls, and whether he feels small clothes shops and grocery stores are being run out of the market.

The trend, he said, was that these small stores were seeing lower sales, and that this resulted in a chain of minimarkets which form a group. "Today I believe this group has around 100 grocery stores, which are centralised. The problem faced by small businesses is their purchasing power," he says. "In a small store you would order a box of something, but a supermarket would deal with the manufacturer for a thousand items for instance, which is the norm."

Shopping malls, he said, are growing, adding that it is an experience for shoppers.

"Today you no longer generally go to a shop in the main street. Members of ours who have main street shops told us that they almost think that eventually they would close them as they don't yield enough return and that it would be better to set up in a big mall as there is larger attendance."

Big malls offer parking, restaurants and shopping, he said. "It’s an experience both for individuals and also for families, where you could spend the day."

But he believes that small shops will remain, speaking of the need for good promotion and a mentality change. "Today you need to compete with the big businesses," he said.

Asked whether he believes many small grocery stores or small shops would still be around in 10-15 years, he said that whoever is in Government must discuss with the Chamber of SMEs and others to see what support these businesses need in order not to lose them.

"The country has an ageing population." He said that if corner grocery stores close, it could have an impact on senior citizens, including due to the travel required to reach a supermarket.

He said that the government needs to ensure that small shops don't disappear. "If we lose these stores, I think we will even lose our character. If a tourist comes to Malta and just sees these big stores, they might say they might as well be in London if they are from England for example."

Tourists come to the island expecting to find local establishments, he said.

He mentioned an establishment in Rabat that remained popular, and mentioned how marketing and support helps.

"This is why we always tell the government that small businesses need help. If we don't keep helping small businesses and lose them, we lose everything."

The economy is built on small businesses, he said. If the economy ends up all in the hands of big business, when some issue arises, big business wouldn't stay worrying about the workers and their families, he said. "Large factories would receive orders from abroad if they are foreign companies, that they would need to reduce their workforce by a percentage for example," he said, adding that this is why "we need to be careful."

Asked whether he would encourage university students who want to open their own business, he said he would.

"Malta Enterprise offers many incentives," he said.

"The more competition there is the bigger the challenge, that is what I always say. I started working in my father's business when I was 15. I have been in business for 55 years. You need to start slow, and I remember these big companies today when they were starting out. Small."

Malta Enterprise has a lot of support for start-ups, he reiterated.

He said that students at University and MCAST aren't really pushed to create a start-up or start their own business, and said he doesn't know why that is.

"The mentality is to either enter the public sector, or work for a big company. They are not taught to go for their dream if they have one."

If a young person graduating from university wants to set up any kind of business, the incentives for start-ups are there, he said.