Malta's Small Business Engine: How The Development Bank Is Fuelling A Thriving SME Ecosystem

More than nine in ten of the businesses supported by the Malta Development Bank (MDB) are small and medium-sized enterprises.

Speaking to the Malta Independent on Sunday, MDB CEO Alison Micallef revealed that of the approximately 750 firms assisted by the bank since its founding in 2017, over 90% are SMEs. The figure reflects not only the composition of Malta's private sector, where 99.6% of all non-financial corporations are classified as small or medium-sized businesses but also the MDB's deliberate commitment to ensuring that ambition and enterprise are never held back by access to finance.

"SMEs are the backbone of the economy in terms of numbers and activity," Micallef said, adding that the bank exists to step in wherever the market leaves gaps, working alongside commercial banks rather than displacing them.

For Malta's startup ecosystem, the MDB's approach has proven transformative. By bridging the financing gap that frequently constrains early-stage and growing businesses, particularly those unable to meet commercial banks' collateral requirements, the bank has helped create the conditions in which entrepreneurial ventures can take root and scale.

The bank's reach extends well beyond business lending. Its StudentAssist scheme has supported around 900 students with approximately €38 million in interest-free loans of up to €100,000 each, covering tuition, accommodation, and education costs. In doing so, the MDB is actively investing in the skilled workforce that will power Malta's economy for years to come.

Looking ahead, the MDB is developing a blended finance instrument in partnership with Xjenza Malta, specifically designed to help innovative firms bridge the gap between research and development and commercial market entry — an area where traditional lenders have historically been cautious.