Malta Records Europe's Highest Business Growth Gap as Entrepreneurial Ecosystem Thrives

Malta has achieved a remarkable distinction in European enterprise statistics, with nearly three times as many businesses opening than closing in 2023—the largest positive gap in Europe. According to Eurostat data, the island recorded 9,669 new enterprises against 3,726 closures, representing a net positive growth rate of 10.5%, significantly outperforming the EU average.

Malta's business birth rate of 17.1% far exceeded the European average of 10.5%, while its death rate of just 7.6% demonstrated exceptional stability. This performance places Malta in an elite group of only five European countries with birth rates above 14%, alongside Portugal, Estonia, and France.

This success reflects the robust entrepreneurial ecosystem that Malta Enterprise has cultivated through comprehensive support initiatives. The recent Startup Festival Week Malta, held in October 2025, attracted over 2,500 participants from more than 40 countries, showcasing the island's vibrant innovation landscape. The five-day celebration featured the Pitch-Black Competition, where winners received equity financing packages worth up to €300,000 from the Malta Venture Capital Fund.

Malta has introduced extensive support mechanisms for startups and SMEs, including the €150 million investment fund announced in the 2026 budget—allocating €100 million for businesses and €50 million specifically for SMEs.

Malta has introduced extensive support mechanisms for startups and SMEs, including the €150 million investment fund announced in the 2026 budget—allocating €100 million for businesses and €50 million specifically for SMEs. Malta Enterprise grants provide crucial funding for digital transformation, with support ranging from €10,000 to €128,400 for companies adopting artificial intelligence, cybersecurity, and other advanced technologies.

Additional initiatives include the Business START programme offering seed funding up to €10,000, the €10 million Malta Venture Capital Fund for high-growth digital businesses, and tax credits up to 45% for qualifying investments. The Malta Startup Residence Programme provides three-year permits for international entrepreneurs, further strengthening the ecosystem.

This comprehensive support infrastructure contrasts sharply with eight European nations where business deaths outnumbered births, demonstrating Malta's success in creating a resilient, attractive destination for enterprise and innovation.