Strategy and succession gaps hold back Malta's family businesses, survey shows
55% of family firms saw turnover rise without profit growth. Survey links written strategy to better results, but most firms lack one.
More than half of Malta's family businesses have seen turnover rise without a corresponding increase in profits, according to a survey by the Malta Chamber and EMCS Advisory. The finding points to a persistent leadership gap in strategy and governance.
Only 37% of firms reported growth in both turnover and profits between 2022 and 2025. Among those with a written strategic plan, 41.5% achieved both, compared to 80% of firms without a plan who blamed daily operational pressures for their lack of strategy.
Silvan Mifsud, who chairs the Chamber's family business committee, said written strategies appeared to be associated with better profitability. The report itself warned that simply having a functioning board does not automatically shield a business from margin contraction.
Formal oversight is widespread but no guarantee of profit. Around 70% of firms have a board that meets regularly, yet 40.4% of those reported higher turnover alongside lower profits. Performance also varied by size: very small firms and those with over 250 employees fared best, while mid-sized companies struggled to convert growth into profit.
Succession planning remains a weak spot. 61% of firms have no written succession plan, citing limited interest from younger family members, informal understandings, and lack of time. More than half of owners would not consider selling to employees or third parties, while 32.8% would consider a sale or merger.
Staffing adds to the pressure. Almost 80% of firms said finding and keeping workers is their greatest operational difficulty, and 54.3% reported payroll costs rising faster than revenue. Family employment policies are becoming more common, at 35% up from 26%, but formal training for family members remains rare: 78% have no such requirement.
The survey underscores that family businesses need more than growth in turnover to secure lasting profitability. Without deliberate strategy, governance, and succession planning, many risk margin contraction even as revenues climb.