Malta’s business landscape continued to expand in 2024, with the number of active enterprises rising to 60,856 — an increase of 3.1 per cent, or nearly 1,900 new enterprises compared with the previous year. But beneath the headline growth, the structure of the Maltese economy is undergoing a quieter and more consequential shift: more companies are hiring, but the country is increasingly dominated by micro-enterprises, while the number of large firms continues to shrink.

According to fresh data published by the National Statistics Office, employment climbed to 275,357 in 2024, fuelled by a 6.3 per cent jump in employer enterprises. Malta now has more than 20,000 firms with at least one employee — a meaningful expansion of the hiring base.

But the picture isn’t evenly distributed.
Micro firms employing fewer than 10 people make up the overwhelming majority of Malta’s enterprise ecosystem and grew by another 2.9 per cent last year. Medium-sized firms (50–249 employees) rose by a strong 9.7 per cent, but the largest employers — those with more than 250 workers — fell by 2.5 per cent.

The result is a business economy that is expanding in number but fragmenting in scale: more businesses than ever, but fewer “anchor” companies capable of generating large, high-value employment.

Sectoral data paints a similar picture of a country caught between its traditional economic base and its higher-value aspirations. Wholesale and retail trade remains the backbone of the enterprise count, accounting for 16 per cent of all active businesses and still the largest employer across the economy. But professional, scientific, and technical activities — the broad sector covering everything from accountancy and engineering to consultancy and research — has quietly grown into a second pillar, now representing 15.3 per cent of active enterprises and one of the fastest-growing employment categories.

The rise of professional services mirrors Malta’s gradual shift toward knowledge-based economic activity, even as accommodation, food services and administrative support continue to absorb significant labour and drive overall job growth. In 2024, administrative and support services alone accounted for 11.5 per cent of total employment, with accommodation and food services following close behind at 10.4 per cent.

At the same time, the legal structure of Malta’s business community remains strikingly skewed toward small, individually operated firms. A full 73.2 per cent of all enterprises are sole proprietors or partnerships, compared with just 26.4 per cent structured as limited liability companies. Even among employer enterprises — those with actual payrolls — the split remains nearly even, highlighting the country’s dependence on thousands of small operators rather than a handful of scalable companies.

Taken together, the data points to an economy that is growing — but not necessarily consolidating or maturing in the way advanced economies typically do. More businesses are employing people, more sectors are expanding, and Malta continues to attract start-ups and small ventures. Yet the decline in large enterprises and the dominance of micro-businesses raise questions about long-term productivity, innovation capacity, and the country’s ability to build globally competitive firms.