A handbook produced in part fulfillment of the Educating Entrepreneurs in Traditional Arts and Crafts Project financed

by the EU lifelong learning programme

1
Preamble

This handbook was created to serve as a Tool to persons who are interested to set up a craft-
based enterprise. It is based on work conducted in the previous years in the area of crafts in
Malta, experiences of Maltese crafts persons in running their own business, a number of
encounters with numerous crafts persons from the Maltese Islands as well as our own
experiences.

This document is a collection of insights and steps of what a person needs to know prior to
making a transition from a hobbyist to serious crafts business. It is hoped that with this
handbook, crafts persons can be directed to the right channels.

This document is downloadable in pdf is available from FOPSIM’s website www.fopsim.org and
will be updated from time to time to ensure its viability.

2
Table of Contents

Part 1: Introduction Page 5

Part 2: Running a Crafts Business Page 8
Part 3: Case Studies Page 17
Part 4: Funding Opportunities Page 20
Annex 1: List of Organisations that can Assist Crafts Persons in Malta Page 27
Annex 2: The Business Plan Page 30

3
The Aims of the Handbook

This handbook has been created as part of the Educating Entrepreneurs Project which was
financed under the Partnership Programme of handbook. The aims of this handbook are:

 To serve as a guidebook for persons interested in setting up a crafts business and to

analyse if this is a step that they can take;
 To bring together insights and experiences of persons who have been through this route
thus serving as a learning tool;
 To educate crafts persons in the basic aspects of running a successful and profitable
enterprise;
 To set up a mentor/coaching system in crafts sector through case study approach;
 Build a network of crafts persons;
 Living document that can assist crafts persons by crafts persons;

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Part 1: Introduction
1.1 Crafts in Malta1

Crafts are considered by UNESCO as part of a humanity’s intangible heritage, where intangible
cultural heritage is defined as:

“... the practices, representations, expressions, as well as the

knowledge and skills (including instruments, objects, artefacts,
cultural spaces), that communities, groups and, in some cases,
individuals recognise as part of their cultural heritage. It is
sometimes called living cultural heritage, and is manifested inter
alia in the following domains Oral traditions and expressions,
including language as a vehicle of the intangible cultural heritage;
Performing arts; Social practices, rituals and festive events;
Knowledge and practices concerning nature and the universe; and
traditional craftsmanship (UNESCO [online]).

Traditionally, crafts represent the artistic heritage of a community and collectively represent
the identity of a nation or on a smaller scale the identity of a group of people. In Malta crafts
have always been seen as a means of economic activity, traditional life and in recent years
associated with the innovation culture.

A study conducted by the Commerce Department in conjunction with the National Statistics
Office in 2010 revealed the following:

 There are currently 4339 persons in the Maltese Islands registered as

‘craftspersons’.
 65% of the craftspersons in Malta are male and 32% are females
 The majority of craftspersons (39%) fall in the 40 -59 age group
 For 73% of the craftsperson, craft production is their main occupation, for 15% it
is a secondary occupation and for 12% craft production is a hobby.

1
This section is adapted from Theuma (2013) Crafts in Malta: State of the Art Report prepared for the Commerce
Department

5
  56% are self-employed and do not employ anybody; 22% are self-employed with
employees; 14% are employed as craftspersons

1.2 Difference between a Hobby and Craft Business

Before taking the plunge to start your own business, and that implies leaving your day job
to earn a living from your craft it is important to reflect on the following points:

1. What products are you going to sell?

2. Are you able to produce them at a high quality?

3. Will you craft easily reproducible items or craft unique, one-off pieces?

4. Can you produce several related products that match? Or several styles, colours and
sizes etc.?

5. What can you make that is different to, unique or better than what is already being on
the market? Can you improve on appearance, performance or marketability of what is
already out there?

WHEN CRAFTING IS NO LONGER A HOBBY

Setting up a crafts business implies that your hobby an activity that was once enjoyable
and relaxing can become a chore especially if and when you need to meet deadlines and
quotas.

To maximise your time, you will want to work out some kind or assembly line so you can
produce as many products in the least amount of time. This can increase your productivity
and your profit, but it can also takea lot of the joy out of a craft you once did for fun.

So before you start, ask yourself:

 Are you prepared for your hobby to become your job?

 What will you do to unwind when your hobby becomes your work?

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 Is there a market for what you make?

 Are there people wanting to buy what you can make for the price you’re asking?

 How are you going to differentiate yourself and stand out from the crowd? What
makes your product different from your competition? What need or want are you
filling that isn’t already being filled?

 Is what you are proposing going to compete with imported, mass-produced

items? Can people buy something similar for a fraction of the price from the
souvenir shop? Tal-Lira store etc?

 Who is your market? What are their needs? It’s important to define exactly who
will buy your product and keep your ideal customer in mind - Are they male or
female? What is their age? Do they come from particular backgrounds?

 Who will supply your raw materials? Will you obtain these directly from online
stores? Will you be using local suppliers? Can you share your costs by buying in bulk
and sharing costs and supplies with a partner? Do your supplies have a shelf life?

 Where will you sell? Will you use on line selling points? Will you be using local
shops?

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Part 2: Running A Crafts Business

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2.1 What is An Enterprise?

An enterprise is the creation of new and innovative product for which there is a new customer
and a new market. An Enterprise enables the entrepreneur to create an idea and to create an
organisation to harvest the opportunity, an activity which is called the entrepreneurial process.

To set up an enterprise there are three main stages:

(1) Identification of Opportunities

When the entrepreneur scans the environment and looks for technology, market
demand and then selects the project idea.

(2) Consolidation of Resources

The entrepreneur consolidates resources like finance, land, building, machineries, raw
materials, skill, and makes a business plan accordingly.

(3) Implementation of Project

The entrepreneur sets the business venture, manages the enterprise, involving
manufacturing, finance management, personnel management, etc. creates and looks for
success and growth.

2.2 Running a Crafts Enterprise Do’s and Don’t’s

Dos

 Prepare a Business Plan (for more details see Annex 2)

 Seek advice from persons who are already in the area
 Study well your competitors, see what they are doing and how your product can be
different and innovative
 Keep your skills updated and be aware of the market trends - attend seminars, courses
on business management, product marketing etc
 Pay yourself first, unless you do you will end up eating into your savings accounts
 Participate in events that will yield customers
 Reach out for help when you need

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  Be consistent in your work and stick to a working schedule with set dates to meet
potential clients, creative days, production days and training days

Don’t’s

 Do not quit your job before you are sure that you have enough work and that you can
sustain yourself
 Do not isolate yourself – it is very easy to think that you can deal with your challenges
on your own - you cannot.
 Do not underestimate the challenges ahead – you need to be resilient, determind, ready
to take a ‘no’ and to keep on trying

2.3 Running a Crafts Business

2.3.1 Premises and Operations

Running a crafts business requires an answer to the following questions: WHERE, WHEN,
HOW?

Where will you craft? Do you have room at home? Can you use your own garage, spare
bedroom?
NOTE: if you are going to deal with food related products or beauty products, health and
safety issues come into play you will need to contact the Ministry for Health for specialized
courses such as HACCP license and to ensure premises are fit for such production.

When will you craft? Do you have to work around an existing job? What about childcare?
Can the two be combined?

Very often working from home people tend to relax a little – there is no need to report to
work at a specific time, however note that a regime of work still needs to be maintained.

Where will you store your supplies and finished products?

Do your products have a short shelf life? Are your premises adequately equipped to store
your finished good without the being destroyed by humidity, moisture, dust? Do you have
adequate space? Can this space be used as a display?

In addition you need to think of managing your business in particular maintaining records

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 Record keeping and computation for VAT and tax purposes are not usually on the top of
priorities however these are essential factors that need to be taken care of. Make it easy
by keeping good records and update them regularly.

Start off on the right foot and plan to keep good records by being organised. How are you
going to keep track of expenses and income? Spreadsheet? Account book?

It is advisable to use a separate bank account that way you can keep records of all
purchases, costs, income – this will facilitate matters when you need to fill in tax and VAT
returns. It is also easier since you can also pay yourself from the income generated. Using
your own personal funds may be an option but not a wise one and it is a short term
strategy.

Be consistent – device a filing system for receipts, using hard and soft filing. Update and
back up your data on your computer. Consider using cloud computing for additional peace
of mind. Use simple systems such as numbering your cheque books and Vat books

REMEMBER:
YOUR GOAL IS TO MAKE PROFIT and EARN A LIVING. The only way to tell if you are is to
keep proper records of your income and expenses.

2.3.2 Cost of running a craft business – financing and maintaining the operation

Prior to setting up your craft business it is good to determine your monthly and annual
costs. Typical costs include:

One Time Fees:

 Design work – website, facebook page, logo

 Accounting Costs – setting up the businesses, registering for VAT, establishing
company papers
 Professional advice to prepare business plan

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 Recurrent Fees:

 Utility bills
 Internet costs and website maintenance
 Supplies (carefully work out these as these are the main cost item)
 Salary
 Marketing fees
 Membership to association/groups
 Participation in fairs etc
 Training costs

2.4 Legal aspects

2.4.1 Intellectual Property Rights

If you are setting p a company you need to register your business name. Think about
registering your creations with the Department of Commerce – a craft item is your own
creation protect it.

2.4.2 VAT2

Registering for VAT

Under Maltese law, any person performing an economic activity, whatever the result or scope
of that activity, then you are considered as a taxable person. Under normal circumstances, you
are required to register for VAT under article 10. If your annual turnover does not exceed the
established threshold (see below) then you may opt to register under article 11 as an exempt
person.

There are three types of Registrations for VAT as follows: (a) If you are supplying goods or
services and your annual turnover exceeds the established exempt threshold below, you have
to register for VAT under article 10, by which you would be liable to charge VAT on your taxable
supplies and you could claim back the VAT you incur in the course of your taxable activity under
certain conditions.

A person registered under article 10 would

2
www.vat.gov.mt

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  have a VAT number with the prefix MT
 have to issue fiscal receipts or tax invoices, as the case may be, on all supplies made by
him
 normally submit a VAT return for a tax period of three months by the not later than 6
weeks after the end of the tax period, or as directed by the Commissioner.

(b) If you are supplying goods or services and your annual turnover does not exceed the
established entry threshold (see below), you may register for VAT as exempt under article 11.
You will not charge VAT on your supplies and will not be able to claim back the VAT you incur in
the course of your economic activity. However, you may instead opt to register for VAT under
article 10 to charge VAT and claim a deduction of the VAT incurred in the normal way. If you
decide to opt for the latter option, then you are required to remain under article 10 for a
minimum of thirty-six months. It is only after that period that you would be able to register
under article 11 and provided that the exit threshold is not exceeded. On the other hand, if you
are established in Malta and your annual turnover does not exceed €7,000, then you are not
required to register for VAT.

A person registered under Article 11 would:

 have an identification number without the MT prefix

 have to issue fiscal receipts or tax invoices, as the case may be, on all supplies made by
him
 submit a declaration (simplified tax return) at the end of each calendar year which must
be submitted by the 15th March of the following year.

(c) If you are a non-taxable legal person or a taxable person not registered under article 10, and
you make intra-community acquisitions of goods in Malta the value of which exceed €10,000
since the start of the year, then you are liable to register for VAT under article 12 and pay VAT
in Malta each time you make such intra-community acquisitions.

2.5 IT and the Crafts Business

Setting up a website and a Facebook page is one way of making yourself known to
potential clients in the local and overseas markets.

A website and a Face book page can be useful to sell your products – simply by setting up a
Facebook page and promoting your page. Facebook offers a free sales platform – simply
upload photos of your product and ask potential buyers to comment ‘sold’ on the photo.

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 A website is useful to build your image as a serious crafts person and it will improve you
brand. It is also useful to market your products.

A website can also help to connect you with other crafts persons in your niche, thus enable
you to share your ideas and views.

Use the website to tell your story. People are interested in crafts because they tell a story
about their creator, so share how you came about your idea, do not be generic, use the
space to explain to potential customers how you have created your pieces

A website is also useful as a sales window for your craft items.

Some tips for running a successful crafts website:

 Take professional and good photos of your products

 Be clear and consistent with information of your product
 Give the boring bits like dimensions – they are important for potential buyer
 Give clear indications how you can be contacted
 Give suggestions to customers how they can use the item

Advertise your webpage and facebook page on non-online media such as brochures and flyers

2.4.6 Participating in exhibitions and fairs in Malta and oversees

One way of introducing your craft to the market is to participate in exhibitions and fairs Below
are some tried and tested tips from established artists/ crafts persons on how to get the best
out of fairs and exhibitions.

 Be a spectator. Before your first show attend some as a spectator to get the feel for the
market – who exhibits and who are the potential visitors. You will also be able to
determine whether your product will meet the attendees’ expectations.

 Do your homework. Find out who typically attends the show, what kind of turnout you
can expect and how much it will cost to exhibit there. Check booth prices, what is given
by the exhibitors and what you are expected to bring. Factor in costs of any props you
will require. What packaging material will you need.,

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 Start small. Most established artists and craftspeople sell to repeat customers who
frequent the same shows every year and often collect their pieces. This will help you to
keep your costs to a minimum. Inform any clients that you will be at the fair through
email/ facebook page.

 Price it right. While cheaper work is easier to sell, you've got to sell a lot more items to
cover your costs and make a profit. Established artists have a range of products on
display this will ensure that you can sell, generate interest and make a small profit. If
you are working at the stall, the chances are people may be more ready to buy. Have
one-off pieces to generate interest and gain commissioned work.

 Ideally arrange to have credit card payment facilities on site. Credit cards are the
common currency of shows and fairs, and if you don't accept them, you're going to lose
sales to vendors who do. Customers may be interested to buy your more expensive
items but they will not have cash. Consider taking a small fee as a promise for the sale. If
you go down this route make sure you have the details of the potential client.

 Don't go it alone. While shows can be exciting and profitable, they can also be physically
and emotionally exhausting. That's why it's important to bring along someone to help
you work the booth and deal with customers. This will also give you a chance to get up
and go to the bathroom, eat, and talk to prospective clients.

 Pack your stuff. Make sure you bring enough work to sell but not so much that you'll
have to carry most of it back. Other items to bring along are –pens, tape, chairs if these
are not provided by the exhibitors, a calculator, a credit card machine, packing material
such as old newspapers, bags and boxes for customers to carry your products home in
and any brochures or marketing materials you might have.

 Put your best foot forward. People like to see a craftsperson creating artwork in his
booth, not just selling it. While this isn't always possible, it's a crowd-pleasing idea that
works well for jewelry makers, woodworkers, quilters and sculptors and clay. Ensure
that your display table is clean and attractive and that your products are well displayed
with prices clearly marked. Use catalogues, photos to display other products you may
have.

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 Build a mailing list. Shows are a great way to develop your customer database. Try
putting a fishbowl on your table and offering people a chance to win a piece of artwork
in return for giving you their contact information or business cards. Giving away
promotional items with your company's name and logo works, too. This way, you can
send out postcards inviting prospects to your next show. Don't forget to collect e-mail
addresses, too! It's a lot cheaper to send out 100 e-mail messages than it is to pay for
paper and postage.

 Count your money. Before you move on to the next show, sit down and figure out how
much you made on the last one. For example, did you earn the amount you spent?
Remember, we're talking about profits, not sales! Don't forget to include the cost of
your materials, the booth space, travel, shipping and cleanup. This kind of breakeven
analysis will help you figure out if you should exhibit at the same show next year.

16
Part 3: Case Studies

17
3.1 Introduction

This section contains a number of successful case studies of persons who have set up and run
craft businesses. This section will serve as an inspiration for interested persons. By sharing
experiences and life stories we will learn from one another. This will also serve as setting up a a
mentor/coaching opportunity in the crafts sector. This is a live –page and we aim to keep it
going with tips and insights from more crafts persons.

Tips from established local artists:

Experiences in Setting up the Business

 It definitely wasn’t an easy process but doing what I do is more than a ‘buisness’, it’s my
passion. The setting up is still in progress even after 5 years as the nature of what I do
has to keep evolving.

Challenges faced when setting up the business and to maintain it

 It’s an on-going learning process. There is no fixed formula especially in the art world.
One needs to be constantly out there and be a step ahead somehow, through
marketing, being innovative, etc

People/ Resources you found helpful when setting up your business

 Mostly my accountant for the VAT, NI and other related aspects. I truly had no one to
discuss and bounce my ideas with.

Obstacles encountered when setting up your business

 It’s a day by day kind of life so the challenges are plenty. The VAT issue continues to
make things harder. Being a micro economy, so self-employed with no employees, I
totally have to rely on myself and my own resources all the time. There’s no help for
people like us like for example some form of tax deductions for the first 3 or 5 years till
we set up. Banks will help if you already have the money which defies the purpose. And
we’re still in a who-you-know kind of mentality so it’s not easy to break through that
attitude and the accompanying barriers.

18
What would you like to have seen during the process?

 More support from the authorities towards self-employed people within the arts and
crafts sector.

What is your advice to others starting a journey like yours ?

Do your homework well, but maybe ignorance is bliss at times! Be ready to persevere. Follow
your passion, work hard and believe in yourself.

19
Part 4: Funding Opportunities

20
4.0 Introduction

This section contains information on funding opportunities that exist for crafts persons to upgrade their
enterprise, participate in programmes; training opportunities and more. As outlined in the most recent
Operational Programme I: European Regional Development Fund and Cohesion Fund, “Fostering a
competitive and sustainable economy to meet our challenges”, the Government of Malta aims to
increase Malta’s competitiveness by investing in SMEs.3

“Investment priority 3d - Supporting the capacity of SMEs to grow in regional, national and international
markets, and to engage in innovation processes”

The above mentioned investment priority targets all local SMEs but it also highlights the importance to
further develop the artisanal sector and traditional crafts to preserve Malta’s history, culture and
traditions. This field of traditional arts and crafts is important for the local community and it also has an
impact on the tourism industry. The Government of Malta aims to develop units for the sector of
traditional crafts and artisanal work to encourage craft persons to invest in their own business to
improve the tourism product and increase the competitiveness of small enterprises in this sector.

The European Regional Development Fund and Cohesion Fund 2014-2020, will not only target
infrastructural development, but it will also encourage networking with new local and foreign
stakeholders. This investment priority, will also consider funding for new equipment required to
develop innovative products and services. Financial incentives will be available for SME’s to invest in
developing tourism products, resource efficiency, quality certification and more. Grants will also be
available for micro enterprises under this investment priority, including individuals who are self-
employed.

These initiatives will be further supplemented through the SME initiative for which the Government of
Malta allocated € 15 Million from ERDF. These funds will be available as uncapped guarantees for capital
relief.4

Calls for proposals will be issued by the government and publicized on the media, on the Government’s
website and on the website of the Managing Authority launching the call. In the Operational Programme
I, it is clearly stated that the criteria which will determine the award of funds are the following:

 Quality of the Project Proposal and its potential to contribute towards the achievement of the
expected results as stated in the Operational Programme (OPI);
 Overall costs of the proposed project, including the project’s cost effectiveness and project
sustainability;
 Degree of additional leverage that the project, will obtain through the deployment of EU funds;

3
Priority Axis 3
4
This is supported by another Operational Programme: ‘Stimulate private sector investment for economic growth’

21
  Effective integration of the horizontal principles (particularly sustainable development and equal
opportunities principles) in the proposed project;
 Capacity of the organisation to implement the proposed project and
 State of readiness for the commencement of the project.

Priority PA 3- Enhancing Malta’s Competitiveness through investment in SMEs

Axis
Fund Category of Region Code € amount
ERDF Transition 001. Generic productive investment in small and 7,158,054.0
medium-Sized enterprises (‘SMEs’) 0
ERDF Transition 063. Cluster support and business networks 4,800,000.0
primarily benefiting SMEs 0
ERDF Transition 066. Advanced support services for SMEs and 6,947,523.0
groups of SMEs (including management, marketing 0
and design services)
ERDF Transition 067. SME Business development, support to 6,947,523.0
entrepreneurship and incubation (including 0
support to spin offs and spin outs)
ERDF Transition 072. Business infrastructure for SMEs (including 8,800,000.0
industrial parks and sites) 0
ERDF Transition 074. Development and promotion of tourism assets 8,000,000.0
in SMEs 0
Operational Programme I 2014-2020

35,653,100.00 will be allocated in the form of non-repayable grant and 7,000,000.00 will be distributed
in the form of a loan or similar form of support.

4.1 Micro Invest

MicroInvest aims to support entities in developing their business, innovate, expand and implement
directives or upgrade their business. Self-employed individuals will be supported with a tax credit as a
percentage of the eligible costs and wages for new employees.

MicroInvest is a scheme for small enterprises that do not employ more than 30 persons and that have a
turnover that does not exceed €10 million. Eligible enterprises may receive a tax credit equivalent to
45% or 65% in the case of businesses operating from Gozo, of the eligible expenditure.

Maximum tax credit to one undertaking is capped at €30,000 over any period of 3 consecutive years.
This amount is increased to €50,000 for Gozo based Start-ups. Tax credits may be utilised over 3 years

4.1.2 MicroInvest Eligible Cost

Like with all other projects, the eligible Costs under the Micro Invest Scheme are:

 Furbishing, refurbishing and upgrading of business premises

 New (or first time used in Malta) machinery, technology, apparatus or instruments which
enhance the operations

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  Information Technology
 A new motor vehicle over any 3 year period
 Wage costs for new employees covering a 12 month period

4.1.3 MicroInvest Application Details

Applications for tax credits in respect of costs incurred in 2015 will be accepted between 1st January
2016 and 30th March 2016 (4 p.m.)

4.1.4 MicroInvest Help Desk

Postal Address:

Business First
Gwardamangia Hill,
Pieta`, MEC 0001
Malta.

Telephone: 144

Website: http://www.maltaenterprise.com/en/support/microinvest

www.businessfirst.com.mt

Email: info@businessfirst.com.mt

4.2 Micro Guarnatee Scheme

The Micro Guarantee Scheme can help small enterprise access loans by providing a guarantee of up to
80% on loans of up to €100,000

The guarantee is 65% for enterprises employing at least one person, but can be increased to 80% for
companies engaged in manufacturing that employ at least 2 full time persons

Eligible enterprises must not be employing more than 50 persons and their turnover must not exceed
€10m

4.3 Malta Arts Fund

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4.3.1: Project Support Grant (Small and Large Projects).
This grant supports stand-alone arts projects by individual artists, groups or organisations. By selecting a
number of valuable initiatives and creative projects for support through this Strand, the outcomes
achieved are meant to make an impact on Malta’s cultural, social and economic scenario.

4.3.2 Organisational Support Grant.

This strand caters for organisations seeking funds to support their operation in the arts sector
in Malta and/or to operate an artistic programme. It will provide organisations whose aims are in line
with the goals and priorities of the National Cultural Policy with funds towards both programming and
organisational costs

4.3.3 Cultural Export Fund

The Arts Council of Malta has set up a strategy to internationalize the creative and cultural sector; this
includes the ‘Cultural Export Fund’ [www.maltaculture.com]. This fund includes three strands: travel
grants, presentation & touring and translation grants.

Travel Grants aim to encourage artisans and artists to build new networks, explore new international
collaborations and develop new skills. The maximum grant is of €2,000. During 2015 four applications
were issued: 22nd May 2015, 31st July 2015, 18th September 2015 and 30th November 2015 and the
duration of each project cannot last longer than 8 months. These grants include 100% funding of travel,
accommodation and participation fees; insurance and visa.

Presentation and Touring targets occasional international presentations, exhibitions or tours. This
action promotes the exchange of creative excellence with international networks. The fund supports
80% of the costs to export artistic work, production fees (rental of venue and equipment) and travel
costs of Maltese artists or artists who are based in Malta (Transport costs, accommodation, insurance
and visas).

Deadlines for 2015: Closed; 2016: 2 deadlines-TBC

Translation Grant aims to support the translation of artistic works, ranging from books to films, for
international distribution.

Maximum grant: 5,000

4.3.3 Application Details

Travel Grants

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Applications can be downloaded from: http://www.maltaculture.com/content.aspx?id=397342

Presentation and Touring

Application form can be downloaded from: http://www.maltaculture.com/content.aspx?id=393610

Translation Grant

Application form can be downloaded from: http://www.maltaculture.com/content.aspx?id=398702

Applications are to be submitted by email at applyforfunds@maltaculture.com till 12:00 (noon) of the

deadline date or by registered post at Arts Council Malta, 16, Casa Scaglia, Mikiel Anton Vassalli Street,
Valletta. Applications by post are to be submitted Monday or Friday between 9am-12pm and 13:30-
16:30, however on the deadline date application are to be handed it within 12:00 (noon).

4.4 Training Aid Framework (TAF)

The Training Aid Framework scheme is partly funded through the European Social Fund (ESF) and it aims
to train individuals who are already in the labour market, to further develop their skills and enhance
productivity. Through this training, employed person increase their competitiveness at a local level and
also with international markets.

4.4.1 Eligible Cost

TAF provides a reimbursement of part of the training costs on the successful completion of the training
course. The training programme has to receive prior approval from the corporation, which shall outline
the added value to of the programme to one of more employees.

Training Programmes may include:

 Training that is within the objectives of an enterprise/ self-employed individual

 In-house training/out-sourced
 Training delivered in Malta Overseas
 Distance Learning

4.4.2 Eligible Applicants:

 All employers with one of more employees (Full-time/ Part-time basis)
 Self-employed

Not Eligible: Public Sector Departments, organisation including Government Ministries; Authorities;
Public Sector Foundations; Public Commissions; Local Councils.

4.4.3 Application-Terms and Conditions

Application form is to be submitted at least three weeks prior to the commencement of the training
course. One has to include the size declaration of the undertaking, training package, quotations,

25
justification notes and supporting evidence (where necessary), quotations related to consultancy and
copy of report (where necessary) and quotation related to travel (where necessary).

Eligible costs for each application must be €350 or more and each entity cannot exceed €250,000. Costs
that are eligible under this scheme include: the fees for trainers, travel and accommodation expenses
(with a limit of €500 for people travelling from Europe and €1,000 from other destinations), cost of
consultancy (maximum €2,500) and staff costs for the duration of the training. VAT is not an eligible
cost.

4.4.4 Additional Information

Applicant’s information pack:

TAF guidelines:
http://etc.gov.mt/Resources/file/Training%20Aid%20Framework/TAF_Guidelines_Form_06_Feb_2012.p
df

TAF Application Form:

http://etc.gov.mt/Resources/file/Resources/2015/SET_application_form_20150325.pdf

Undertaking Size declaration:

http://etc.gov.mt/Resources/file/Resources/2015/May%20Forms/TAF2_Undertaking_Size_Declaration.
pdf

Reimbursement Process:
http://etc.gov.mt/Resources/file/Resources/2015/TAF2_Reimbursement_Guidance_Notes_20150401.p
df

For more information visit: http://etc.gov.mt/etc-portal/Page/55/taf-employers.aspx

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APPENDIX 1: List of organisations that
can assist crafts persons in Malta
The following is a list of Organisations that can assist crafts persons in Malta in setting up
businesses,

Business First – Malta Enterprise

Website: http://www.businessfirst.com.mt/en/about-malta-enterprise

Address: Malta Enterprise Gwardamangia Hill, Pieta`, MEC 0001 Malta.

Contact Number/s; 144

Department of Commerce Crafts Section:

Website: https://secure3.gov.mt/maltacrafts/en/content/1/home

Address: Small Businesses and Crafts Directorate, Commerce Department Lascaris

Valletta VLT 1933 - MALTA

Contact Number/s: 2569 0332

VAT Department
Website: http://www.vat.gov.mt/en/Pages/Home-Page.aspx

Address: VAT Department Malta Centre Point Building Triq Ta' Paris,

Birkirkara BKR 4633

Contact Number/s: 21499330 - 4

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Malta Standards Authority
Website: www.msa.org.mt

Address: Malta Standards Authority T/A MSA Certification

Second Floor, Evans Building, Merchants Street
Valletta, VLT 1179, Malta

Contact Number/s: 21 24 24 20

MCAST Entrepreneurship Unit

Website: http://www.mcast.edu.mt/mec

Address: MCAST Main Campus Triq Kordin Paola PLA 9032.

Contact Number/s: 2180 6658

Bank Of Valletta
Website: https://www.bov.com/outlets/bov-investment-centre-valletta

Address: 45, Triq ir-Repubblika, Valletta VLT 1113

Contact Number/s; 2131 2020

APS Bank Ltd

Website: https://www.apsbank.com.mt/en/business-investments

Address: APS Centre, Tower Street, Birkirkara, BKR 4012, Malta

Contact Number/s: 21226644

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European Association of Small and Medium Sized Enterprises
Website: http://www.ueapme.com/

Address: Rue Jacques de Lalaingstraat 4 B-1040, Brussels.

Contact Number/s; (+32) 2 230 75 99

Employment and Training Corporation

Website: www.etc.gov.mt

Address: Training Aid Framework Unit, Employment and Training Corporation, Head
Office, Hal Far BBG 3000, Malta

Contact Number/s; 22201312

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Appendix 2: The Business Plan
A Business Plana – is a detailed analysis of the business in which all factors needed for business
success are considered. A business plan plans for the future, in terms of deciding how the
business will function in the coming years, how it should grow, and in what directions. Periodic
changes to Business Plan are needed to keep abreast of the changes in the market and other
environment.

Components of a Business Plan

A Business Plan is composed of the following parts:

 Executive Summary

 General Company Description

o What business will you be in? What will you do?
o Mission Statement
o Company Goals and Objectives
o Business Philosophy: What is important to you in business?
o To whom will you market your products?
o Relevance to the Market

 Products and Services

o Describe in depth your products or services
 (technical specifications, drawings, photos, sales brochures, and other
bulky items belong in Appendices).
o What factors will give you competitive advantages or disadvantages?
 Examples include level of quality or unique or proprietary features.
o What are the pricing, fee, or leasing structures of your products or services?

 Marketing Plan
o Market Research – Why?
o Market Research – How?

 Operational Plan
o Production
 How are your services and products produced
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 o Location
 What type of location will you require (space)
o Legal Environment
 Permits and licenses
o Personnel
 Number of employees, pay structure, training requirements
o Inventory
 Services/ product
o Suppliers
 Key suppliers
o Credit Policies
 What credit terms will you allow?

 Management and Organization

o Who will manage on a day-to-day basis?
 Create and organisation structure
o Support /Advisory
 Lawyer
 Accountant
 Mentors/ Key advisors
 Financial Aspects
o Personal Financial Statements
 Assets and investment to be placed in the company
o Start-Up Expenses
 What support does one require to start the business
o Financial Plan
 12 month Profit and Loss
 4-year projection
 Projected Cash Flow

31