EC SME policy & the Maltese furniture sector

Abstract

Speaking in general terms one can safely say that the primary aim of this paper is to take a comprehensive look at EU SME policy, compare it to the local SME policy initiatives and analyse the impact of such EU policies as well as EU regulations on the local furniture industry. It is not easy to write about SMEs, the environment in which they operate as Malta has not yet published a clear Industrial policy. However, it is interesting to carry out research of such enterprises particularly due to the fact that the whole Maltese industrial sector is undergoing a restructuring exercise in view of EU Membership. Thus, it is important to understand at what stage of the restructuring process are the local furniture manufacturers in view of the complete removal of protective levies by 2003. This paper is based on the hypothesis that Maltese SME policy is in line with EU SME policy. Chapter 1 gives a detailed account of EU initiatives directed towards SMEs over the past years. The thorough analysis of both EU and local furniture industry will illustrate the existing gap between the two industries. Thus, this paper aims to analysis what initiatives have the local furniture entrepreneurs undertaken given that the IPSE Sectoral Analysis Report has been publish some 18 months ago. At the time of publication, IPSE stated that immediate action was required in order to be ready for the 2003 deadline. Thus, this paper will illustrate through personal fieldwork, what exactly are the local entrepreneurs doing in view of EU membership.