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+39 02 366 38 610
Company Formation Italy



Exports and Profit Reinvestments, the Key to Success for Italian SMEs

Written by: Bridgewest

Exports-and-profit-reinvestments-the-key-to-success-for-Italian-SMEsThe number of Italian small and medium-sized enterprises (SMEs) which have become successful since the beginning of the year has grown, according to a report launched by the Global Strategy magazine. Moreover, the growth rates of these companies have increased 9 times since last year. Our company formation consultants in Italy can help you start a small business in this country.

SMEs in Italy have reinvented themselves

During the last year, SMEs in Italy have managed to outgrow average companies in their sectors of activity. This performance is due to the higher number of exports and reinvestment of the profits these companies made.

According to the magazine that issued the report, there are 522 companies which are now registering a 9-time higher growth rate when related to the production. The same Italian businesses are expected to triple their economic results in the next 5 years.

Back to what has brought success to these businesses, exports played quite an important role as 48% of the income SMEs registered was generated by exports. The same export numbers are expected to follow a steady growth in the next 3 years. When it comes to the reinvestment of profits, the survey shows the companies chose to focus on innovation and in the implementation of new industrial equipment. While 4% was dedicated to research and development programs, 80% was reinvested in industrial processes.

Our Italian company formation agents can assist those interested in creating a startup in this country, which is the newest trend in terms of company registration.

How does the future look like for these companies in Italy?

On a long term, these companies are expected to continue reinvesting about 70% of their profits with a major focus on reinforcing their net assets. The annual average growth rate forecasted for SMEs in Italy is 11%, after the last 5 years brought a 30% annual increase to these businesses which has also meant the creation of 16,000 new jobs for the Italian economy.

According to the report, companies in the northern part of the country are expected to register the best results in the coming years. According to a sector analysis, the food, machinery and metal products sectors registered the best results until this moment. Also, in most cases family businesses (about 80% of the companies surveyed) registered the best results.

For full information on how to open a company in Italy, please contact us.


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