Promoting entrepreneurship : the impact of the European Union's structural and cohesion funds on start-ups in Malta

Abstract

This dissertation has the aim of describing and assessing how the EU' s Structural and Cohesion funds have addressed the needs of local entrepreneurs, particularly those in their start-up phase. Its focus is placed on the 2007 - 2013 scheme, which is the first full programming period for which Malta has been allocated Regional policy funds since its membership in 2004. This research study primarily explores the nature of entrepreneurship and identifies both the motivations and barriers faced by entrepreneurs in the process of setting up their business venture. It is observed how through the provision of appropriate funding streams and support schemes, start-up challenges are often mitigated. Through a qualitative research approach, it is affirmed that incentives co-funded by Structural and Cohesion funds have targeted most of the identified barriers, yet in some cases were not as successful due to the funds' bureaucratic nature and the insufficient level of collaboration between the national public and private sectors. Two case studies supplement the above by providing tangible examples ofERDF and ESF incentives that have been specifically implemented to address the various needs of local entrepreneurs. The conclusion places the findings in context by re-emphasising the link between mitigating barriers to business creation and promoting entrepreneurship. A number of policy recommendations seeking to enhance an entrepreneur-friendly environment are also presented.