Navigating the complicated landscape of legal and financial regulations can be a challenge bigger than many small and medium enterprises are able to cope with - unless they have access to the right support. Enter the Malta Chamber of SMEs, which last year celebrated its 75th anniversary. It offers a one-stop-shop support service for any issues, questions or concerns that SMEs may have.
“Today the Chamber has evolved considerably from its original objectives of giving a voice to businesses. Representation and advocacy remain a very important part of what we do, of course. But we’ve added considerably to that, offering a range of additional services that together form a comprehensive support structure,” CEO Abigail Agius Mamo says. “Put simply, we are the first port of call for whatever a business may need.”
There are two distinct sides to this support, she continues. One side involves support in terms of helping business address challenges and cope with any problems, offering them options about how to deal with these and walking them through the process. The other side relates to the industry’s advancement, where the Chamber helps it identify opportunities for growth.
“Part of our role involves being responsive to the needs of specific sectors. To use one example, there was a period of time when the renewable energy sector had a bit of a bad reputation with respect to installations that weren’t up to par. We got the sector to work together on a set of standards and to implement them, and nowadays we no longer hear of such issues,” Abigail says.
The Chamber also works to Identify and close gaps on an individual level, such as when a number of entrepreneurs were struggling with understanding why it was important to establish a digital presence, or even how to go about it.
“When COVID hit, those who had already established a digital platform were not as badly impacted as those who were trying to achieve something that usually takes six months in three weeks. We worked hard and fast to close the gap and provide different levels of intervention as needed. Starting from the basics with the release of a basic handbook for those who didn’t even have that level of understanding, to implementing a fully fledged Enterprise Resource Planning (ERP) system, we continued escalating our services as needed,” she explains.
The Chamber’s aim is to help SMEs stay ahead of the game. This is partly achieved via seminars and training, especially with respect to concepts that many may have viewed as novel without quite understanding the reason for their need.
“Sustainability and ESG are two cases in point. Many businesses weren’t sure what is expected of them, or even why it’s important. We launched a free consultancy service outsourced to an expert who helps such entrepreneurs get started on their journey and to understand the potential of ESG and sustainability, even with respect to financial requirements or applying for grants.”
SMEs have certainly come to appreciate the support structure, reaching out to the Chamber even if they don’t see a specific programme related to their request. Abigail puts this down to the fact that most entrepreneurs know that they can reach out at any time as, even if the Chamber itself doesn’t tackle the specific issue they will be able to direct them to someone who can help.
“We encourage this, because more often than not such issues are time-sensitive. We put them through to the person best suited to offer assistance, eliminating all time wastage and helping them reach a solution faster. Throughout the Chamber’s long years of operation, we have built a very strong network, and this certainly comes in useful,” Abigail explains
Representation remains one of the Chambers’ biggest functions as social partners, and this is where things get very technical, with in-depth research into the impact an issue may be having on an industry. Following this, an exercise to increase or encourage sensitisation takes place.
“Policy makers who aren’t in that area of business won’t necessarily understand the full extent of an issue that is troubling SMEs, so we help them understand that. One strong example relates to our efforts within the banking sector. Businesses were facing a massive regulatory overhaul which resulted in over-regulation. We encountered businesses that had their bank accounts closed simply because they didn’t understand how to fill in the paperwork that was suddenly required,” the CEO states.
The approach in this case was a strong advocacy effort with all stakeholders, including the government and banks. This led to new legislation stating that every business has a right to a bank account, besides the introduction of more reasonable time-frames and a more streamlined process.
“Today, if a business’s accounts are closed, they can find redress by going to the financial regulator. We advocated to help banks understand that some businesses were having issues with the paperwork simply because they didn’t understand it, and not because there was any wrong-doing. Our approach is that we can achieve the spirit of the law without taking the most bureaucratic road.”
The Chamber also intervened where businesses ended up with their bank accounts unexpectedly closed, calling urgent meetings to resolve the issue and mediating.
“We are a trusted partner, so that helps. Another example where the Chamber’s representation has been very effective is when there are stringent requirements suddenly imposed on an industry sector,” Abigail continues. “For instance, a licence might be added to the list of requirements, which puts a huge financial burden on solo traders. Or the requirement that you need to be a company to operate within the sector may be added. In such cases we always mediate to find ways of achieving the same result without cutting off those who don’t deserve it. The presence of a licence, or the fact that the business is operated by a company, are not necessarily the best way to fulfil the intentions of the law. We help policy-makers reach the goal without unnecessary bureaucracy or hardships.”
In some cases, the opposite may be true and a licence would better serve the industry in question. Even here, the Chamber is proactive - it was in fact the prime driver behind the introduction of a licence requirement for temping agency, a sector that had been reporting some abuse.
“We proposed a licensing structure to regulate the sector, after discussing it with the stakeholders and getting their backing. Ideally, this process is followed for all major industry changes. Consulting with stakeholders ensures that things are done well from the start. In this case, the requirement successfully eliminated the bad actors who were employing black market techniques.”
Training is another comprehensive area, with the Chamber running two ongoing courses in consumer legislation and employment legislation, besides other ad hoc areas as needed.
“These two areas are not quite straightforward and it’s not just a matter of common sense. Let’s say an employee doesn’t show up for work and you sack him. It may make sense to you, but it’s not legal. Access to knowledge helps businesses improve their core relationships with employees and clients and mitigates disputes.”
In addition to this, SMEs can access free initial legal advice so that they can learn about their rights and options in any given situation. The list of services continues with specific support for funding, and even networking events to help entrepreneurs build their list of contacts.
“Funding can be complicated, which is why we have people who specialise in the topic to walk you through the entire process. And of course, we all appreciate the importance of networking; which is why we organise regular activities for our members. The events tend to be over-subscribed because you will always get something out of them,” Abigail says with a smile.
Finally, Abigail stresses that the chamber is also about raising the profile of good businesses, and educating consumers about them.
“Three years ago, we launched the Malta Business Awards to celebrate businesses that are going above and beyond in their efforts. We’ve celebrated businesses for the ESG efforts, for their innovative approach, and for their inclusivity. Negative cases always make a lot of noise, which is a shame. This is our way of helping the good ones raise their profile,” Abigail concludes.
Become a member of the Malta Chamber of SMEs today by clicking here
The campaign is co-funded by the European Union under the ioreSME Project (101051860) as part of the Support for social dialogue (SOCPL-2021-SOC-DIALOG) call.
