An exploration of the Maltese entrepreneurship ecosystem

Abstract

In 2004, Malta’s National ICT Strategy 2004-2006 asserted that “Malta can be a silicon valley”, a direct reference to what is arguably the leading entrepreneurship ecosystem globally. Taking this statement as a point of enquiry, the dissertation sets out to explore the Maltese high-growth entrepreneurship landscape to determine whether an entrepreneurship ecosystem is developing in Malta, and, if in the affirmative, to accordingly examine its state of development, strengths and weaknesses. The research is structured as a qualitative case study and adopts a deductive approach, testing out the theory of entrepreneurship ecosystems within the Maltese entrepreneurship landscape. A mixed-method approach is adopted, generating primary data from 22 semi-structured interviews and secondary data from an analysis of 9 policy documents with a national and horizontal focus. Data were thematically analysed in line with theoretical frameworks on entrepreneurship ecosystems. The emerging insight from this research supports the conclusion that a small and early-stage entrepreneurship ecosystem started to develop in Malta over the course of the past decade. The ecosystem is currently characterised by a low number of startups and significant weaknesses across multiple ‘entrepreneurship determinants’, in line with the typical performance of nascent ecosystems according to the literature. In-depth analysis of Malta’s performance across eight entrepreneurship determinants (ANDE, 2013) reveals strengths in elements related to support, finance, policy, ICT infrastructure and market access. On the other hand, Malta is significantly hampered by a weak culture, absence of a coordinating policy, access to risk finance issues, and limited propensity to R&I activity. Attempts to facilitate the further development of the Maltese entrepreneurship ecosystem require policymaking that is inclusive and sensitive towards the local context.