Malta Ranks Second in EU for New Business Creation in 2023

Malta recorded the second-highest rate of new business creation in the European Union in 2023, according to Eurostat, with an enterprise birth rate of 17.1%, just behind Lithuania's 19.6%, and well above the EU average of 10.5%.

In total, 7,372 new enterprises were established in Malta during the year, compared with 5,478 closures. The impressive figures highlight the pro-business climate Malta has cultivated, making it an increasingly attractive destination for entrepreneurs and investors across Europe and beyond.

The data underscores the advantages of registering a company in Malta, with the island nation demonstrating remarkable resilience in attracting entrepreneurial activity despite broader economic pressures affecting the continent. These figures underline Malta's dynamic business environment and its continued capacity to attract investment and entrepreneurial activity.

Malta recorded the second-highest rate of new business creation in the European Union in 2023, according to Eurostat. Credit: Welcome Centre Malta

Across the EU, more than 33 million enterprises were active in 2023, with around 3.5 million newly created, while 2.8 million ceased operations. The overall EU enterprise death rate stood at 8.5%, with most member states reporting more start-ups than closures.

Malta's performance stands in stark contrast to several EU members. Countries such as Bulgaria, Denmark, Germany, Estonia, Ireland, Poland, and Slovakia reported enterprise deaths outnumbering births, with Estonia recording the highest death rate at 27.5%.

The pro-business climate Malta offers is further reinforced by broader European trends. Eurostat reported that the share of high-growth enterprises in the EU rose to 10.5% between 2020 and 2023, equivalent to around 180,000 firms achieving sustained employment expansion during that period.

Malta's combination of favorable regulatory frameworks, strategic location, EU membership, and supportive infrastructure continues to position the island as a premier choice for business establishment and growth within the European market. This is welcome news as Malta Enterprise hosts the fifth edition of the Startup Festival.