Young Business Entrepreneurs (YBE) welcomes the Budget for 2014 as a positive step forward towards empowering and assisting more young adults into business.

Reacting to the budget, YBE said that the allocation of € 300,000 for the Youth Entrepreneurship Scheme would contribute towards increasing the low rate of 0.9 percent of young adults who are currently involved in some sort of an entrepreneurial activity.

YBE also noted the Managed Seed Capital Fund which is expected to offer € 10 million in start-up grants to help finance between fifty and one hundred knowledge-incentive start-ups. YBE called for such fund to be “implemented in such a way that will meet the needs of young adults in order to maximise their potential to benefit from such scheme.”

Furthermore, YBE said that it supports the € 3 million annual contribution to the Hybrid Venture Capital Fund.

In respect to the Jeremie Scheme, YBE said that this has already proved to be a successful scheme for local SME’s and therefore its continuation was a step in the right direction. YBE also welcomed the 45 per cent tax credit on expenditure and 65 per cent tax credit if based in Gozo under the Mico Invest scheme aimed towards micro enterprises and self-employed.

YBE also noted the self-employment transaction scheme which it said would provide the opportunity to employ two part-timers at the 15 per cent rate, saying that “this should help self-employed to grow their business activity while creating more job opportunities.”

In regards to the regional island of Gozo, YBE said that it “welcomed the measure to increase more back office work in Gozo. YBE said that while this measure addresses a short and medium term solution of job opportunities for Gozitans in Gozo, the Government needs to look towards a long term solution that would provide the right environment and incentives for Gozitans to develop a business activity in Gozo.”

It added “that the continuation of the Employment Aid programme and Micro Invest scheme are a step in the right direction however it said that this is not enough and therefore further investment is required.”

YBE said that one of the key priorities for investment in Gozo remains for better infrastructure which amongst others includes a better ICT connectivity between the islands. “This would incentivize more service based companies to operate from Gozo and therefore provide an opportunity for Gozitans to work in Gozo.”

YBE commented that the extension of NSO services to Gozo is positive as this will further enhance the scientific data on various aspect of the island. Such data would contribute towards the long term sustainable vision of the island.

It also welcomed the allocation of funds for Gozo under the business promotion and incentive framework.

YBE concluded that the need to involve more young adults into business activity should remain a priority throughout 2014 and beyond, “as this would contribute towards economic growth, more quality job opportunities and less youth unemployment.”

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