A new survey released by the Malta Chamber of SMEs has found that 60% of small and medium businesses reported an increase in turnover compared to the previous year.

However, only 39% found that they increased their profit.

Asked why they believe they increased their sales, the businesses mostly cited the end of COVID-19 restrictions, increased stability, heightened consumer confidence, increased spending power, and better marketing.

Some thrived by diversifying their business interests and changing their strategies, setting up e-commerce or discounting prices.

On the other hand, decreased spending power, inflation, price increases, continuing pandemic repercussions, decreased consumer confidence and the Russia-Ukraine crisis were the main reasons given for decreases in sales.

Other factors that led to a slowdown of sales were reported to be increased competition, la ack of human resources, insufficient parking and low stock levels. Meanwhile, 4% of businesses complained about illicit trading and unfair competition hampering their efforts and 3% blamed construction works and online shopping for their grievances.

When questioned about the causes of price increases, most cited increases in prices abroad, along with increased importation costs and wage costs.