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Government strategies to drive business sustainably

In our previous instalment, we have highlighted the challenges of CEO succession. Talent development is another sensitive topic, which requires a broad approach strategy to ensure that the next generation will thoroughly understand its role in the firm’s future.

Planning the succession of the CEO in a family-run business requires a series of considerations and carefully planned decisions. In some instances, the person leading the board of directors may be resistant to being replaced.

Family-owned businesses represent around 75% of all Maltese enterprises, with many having evolved through generations from small realities to fully-fledged multinationals. Over three decades, Grant Thornton has supported family businesses in planning and implementing solutions to navigate through the most challenging decisions.

Business First is a one-stop shop for entrepreneurs and SMEs, though which one can obtain from business related services related to VAT, employment and licenses matters, amongst others..

Monday 22 October 2018 marks the presentation of the 2019 budget of this government aimed at stimulating economic growth, reducing government debt and delivering a budget surplus year on year.

The dip in optimism suggests that the global economic cycle may have peaked. Business leaders should therefore consider using increased revenue to structurally invest at this stage of the cycle to ensure long-term prosperity.

The percentage of businesses around the world with at least one women in senior management has increased significantly, rising from 66% in 2017 to 75% in 2018. However, at the same time the proportion of senior roles held by woman has marginally declined.

The introduced Family Business Act in 2017 saw the introduction of an incentive scheme for family businesses, whereby donations of marketable securities and business property used in a family business would be subject to a reduced duty rate of 1.5%, from the standard 2% or 5%.

Cross-border merger and acquisition opportunities are increasing as healthy company financials in many economies drive an appetite for deals. However, while cross-border transactions can generate new market opportunities, they often bring heightened risk and a range of challenges.

The Family Business Act came in to force in January 2017 with the aim of facilitating the transfer of family businesses from one generation to the next with the hope of addressing significant succession planning issues.