The Social Enterprise Act, Malta
SOCIAL
The Social Enterprise Act (No. IX) defines and regulates social enterprises in Malta. This Act introduces a new legal framework for "Social Purpose Companies" and is administered by the Ministry for the Economy, Enterprise and Strategic Projects. Although the Act was enacted by Parliament, it has not yet come into force.
Since 2012, the government has been focusing on social enterprises. For example, the former Ministry of Finance, Economy and Investment commissioned a report to determine the size of the social enterprise sector in the country. This effort culminated in the adoption of the 2015 Social Enterprise White Paper, which proposed a streamlined governance framework, the introduction of a formal social enterprise label, and clearer definitions of key sector elements. The enactment of the Social Enterprise Act formally establishes social enterprises in Malta.
The Social Enterprise Act legally defines social enterprises, outlining their core characteristics and the type of profits they can obtain. It also establishes a regulatory authority and an official register for accredited social enterprises.
Since the Social Enterprise Act had not yet come into force at the time of this case study's preparation, data on its impact is not available.
Ministry for the Economy, Investment and Small Business (2015), The Social Enterprise Act - White Paper, https://base.socioeco.org/docs/en_social_enterprise_act_-_consultation_document.pdf
Republic of Malta (2022), Social Enterprise Act, https://legislation.mt/eli/cap/630/eng
Ripard, J. (2012), Work on formal social enterprise policy begins, https://timesofmalta.com/article/Work-on-formal-social-enterprise-policy-begins.402238