SEAM Calls for a National Social Economy Action Plan in Budget 2027
Updated: 2d
14 policy recommendations to strengthen Malta's social economy through legislative reform, better access to finance, and institutional support.
The Social Entrepreneurs Association Malta (SEAM) has submitted its Pre-Budget 2027 proposals to the Government of Malta, calling for a National Social Economy Action Plan that recognises social enterprises, cooperatives, foundations and voluntary organisations as an integral part of Malta's economic landscape.
The submission builds on the outcomes of a national stakeholder roundtable held at Europa House, Valletta, in September 2025, bringing together representatives from civil society, business, academia and public institutions.
The proposals also respond to the EU Council Recommendation on Developing Social Economy Framework Conditions (2023), which called on Member States to adopt or update national social economy strategies by November 2025.
What is SEAM proposing?
The submission outlines 14 recommendations across six key policy areas:
Legislative action: Bring the Social Enterprise Act into force without further delay, establishing the legal recognition needed for social enterprises to operate and access support.
Fiscal incentives and access to funding: Extend existing SME support schemes, tax credits and Malta Enterprise incentives to eligible social economy organisations, clarify tax and VAT treatment, and encourage investment and partnerships with traditional businesses.
Legal and regulatory reform: Review barriers affecting social economy organisations, including banking regulations, access to cooperative finance and disproportionate compliance requirements.
Socially responsible public procurement: Strengthen the practical application of social clauses and reserved contracts, while incentivising partnerships between businesses and social enterprises in public tenders.
Data and support infrastructure: Invest in national mapping of the social economy, establish a dedicated social enterprise incubator, and develop resources to encourage knowledge-sharing and replication of successful models.
Education and skills: Integrate social economy principles into entrepreneurship education and improve access to co-funding for participation in European programmes.
Moving from recognition to implementation
A central message of SEAM's submission is that strengthening the social economy does not necessarily require entirely new funding programmes. Many improvements can be achieved by removing existing barriers and extending enterprise-support measures to organisations currently excluded because of their legal structure.
SEAM also proposes a phased implementation approach, combining immediate Budget measures with longer-term institutional and legislative reforms.
Importantly, the association has expressed its readiness to collaborate with Government and other stakeholders in translating these recommendations into practical action.
Building a stronger ecosystem through collaboration
The proposals reflect priorities shared by SEAM and SEED Projects, whose collaboration supports the development of social entrepreneurship, social innovation and a more inclusive economy in Malta.
By sharing this submission through the SEED Projects platform, we aim to contribute to wider awareness and dialogue around the policy changes needed to help purpose-driven organisations become more sustainable, innovative and impactful.
The full submission is available below for organisations, policymakers, entrepreneurs and other stakeholders interested in the future of Malta's social economy.
Read the full document
Published by Christian Borg, Chief Executive of SEED Projects and Board Member of the Social Entrepreneurs Association Malta (SEAM).
Christian has extensive experience in rural enterprise development, social entrepreneurship and social innovation, with a particular focus on fostering cross-sector collaboration, supporting sustainable business models and strengthening the ecosystem for purpose-driven enterprises in Malta.
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