A recent paper by the Gozo Regional Development Authority (GRDA) discusses the challenges a young entrepreneur in Gozo faces today when starting a new business, and how conditions can be improved. The paper details the weaknesses within the Gozo startup ecosystem, and suggests what can be done to address structural issues and innovate further.

One of Gozo’s biggest strengths is its human capital. Gozo must become more suitable, feasible, and appealing for students graduating in knowledge-based fields to start their businesses in. The island’s small size and relatively unestablished startup ecosystem should be utilised as advantages rather than being viewed as drawbacks. As such, the strategy used should focus on helping startups achieve a new competitive economic edge in varying sectors.

It is recommended to focus on economic sectors where enabling conditions already exist. This would make achieving a competitive edge easier and realistic. Improving the startup ecosystem within high value-added sectors would positively impact Gozo’s overall economic activity. Through focusing on high-value employment opportunities, these businesses could become capable of operating in global markets. This would further enhance the startups’ opportunities moving forward, ensuring stability in their future.

Several areas in which these improvements could be made are outlined. Tertiary education institutions provide a reliable supply of relevant skills which attracts investment. For example, MCAST Gozo could be utilised to introduce short educational programmes within higher value-added sectors, such as ICT, AI, and renewable energy, among others. By providing practical exposure to students, Gozo can establish a talent pipeline which directly improves the startup ecosystem. This pipeline is also aided by incubators and accelerators. These organisations help startups build, maintain, and grow their business.

Gozo’s physical infrastructure is another key component. Firstly, the Gozo Innovation Hub can be utilised further to help startups during the early stages of their business, especially by cutting startups’ costs when first accessing their services. The Gozo Heliport presents several opportunities for startups to develop specialised market niches without necessarily expanding the existing infrastructure. Another area worth focusing on is healthcare. Gozo’s scale presents an opportunity for startups to work on gaining a clear operational advantage within health-related innovation. Another suggestion is that of a Gozo Showcase Office located in Malta would allow Gozitan companies to facilitate business links with clients located elsewhere. Other options to attract skilled professionals include developing a mentoring network with experienced entrepreneurs, and lowering Gozo’s taxation threshold in certain labour markets.

It is essential to co-ordinate the strategy chosen between the different institutions, departments, and initiatives involved. Throughout the process, accountability must be taken through defined responsibilities and regular monitoring of performance. The GRDA is well placed to assume a central co-ordinating role, as this role should focus on maintaining a clear strategic direction for Gozo as a whole. Developing the Gozo startup ecosystem presents a clear opportunity to ensure the economy’s stability in the future.