Italy is a highly advanced country among the European nations. It is prominent for its fashion capital, Milan. Business leaders are highly attracted to the country by the economy with a high GDP of 2.8 lakh crores USD.
The Mediterranean sea makes the country enriched with resources as well as connects with major capitals of trade. The heritage and history of Italy give the country large tourism industry.
|Benefits of Doing Business in Italy||The Drawbacks of Doing Business in Italy.|
|Gender equality||Strict usage of the Italian language|
|High entrepreneurship demand||Stringent dress code and business attitude|
Advantages of Doing Business in Italy
- High access to Eurozone Countries
Italy is a medium in the Mediterranean Sea that connects and opens the pathway of business opportunities in the European Union and North Africa. It also links various business spots of Europe.
- The High Business Opportunities Traffic Center
Due to the central Mediterranean position, it serves as a connecting link between many large economic countries. 20% of the world’s business traffic, 30% of the fuel traffic, and 25% of container traffic across Italy every year. This makes it a high business opportunities traffic center.
- A Lucrative Place with Numerous Business Opportunities
Approximately 1 billion people travel in a year via 40 major ports of Italy along with its 42 airports. This makes Italy attractive for business opportunities and startups. The business triangle of Milan-Turin-Genoa links more business opportunities and offers.
- Flexible Yet Stable Economy
Italy’s economy is contributed by a large number of diversified businesses. Moreover, a connection with a bigger group of countries makes the economy stronger and flexible.
Sprightly sectors of Italy like tourism, manufacturing, car production, mining, textiles, fisheries, and many more are counted in the major industries. This makes the investment grow in a profitable plant and attracts high business owners and investors to the country.
- High Investment policy
The open and diversified economy of Italy welcomes a large number of investors to the country. The government policy for investors is highly profitable. Italian economy succeeds in developing an emotion of trust and confidence which attracts more investors to the country.
The Italian trade agency provides a one-stop-shop for business-related market studies, investment policy and study, and business growth strategies in the country. The FDI policy of investment in the country is highly recommended and approved by investors and marketers.
- Technology and Innovation
Italy is the largest manufacturing and production country in Europe and is quite popular for the quality and the passion of setting up technical and services across the world.
The renowned car manufacturing company like FIAT and telecommunications company Telecom Italia expresses the sufficient usage of technology and skills. With technology, the fashion industry is also prominent across the world.
The pharmaceutical company and health care services are also highly advanced and booming with new research projects.
- High Education System
Advanced education plays an important role in bringing and building up innovative approaches and skillful minds. Every age group from youngsters to experienced workers provides a deep-thinking ability and working with technical concepts and challenges.
Italians education system highly focuses on practical concepts rather than a stringent grasping education system. This brings high powered and professional skilled minds to the team of the workforce.
Italy is well known for its great heritage and Italian culture. Many Italian delicacies and fascinating as well as soulful locations attract a large number of tourists to the country.
This leads to indirect exports and promotes the brands of the country. It also brings in foreign currency which strengthens the economy.
- Natural Resources
Italy has wide-ranging natural resources. The fisheries industry and the textile industry are always on boom because of the natural resources available in a large amount in Mediterranean Sea.
The metal industry and mining also empower the economy due to mineral resources. The heritage culture also plays an important role in enriching the resources and adding icing to the economy.
Disadvantages of Doing Business in Italy
- Hierarchy and Family Concepts
Italians are way more concerned about their families’ business rules. Most businesses in Italy follow family integration employees and restrain from letting foreign workers occupy a prominent position in their business.
This leads to an unhealthy work environment and creates emotional rivalry among the workers. Partiality and Hierarchy are followed in prominent companies like car manufacturing company FIAT.
However, this strategy keeps the traditional method and culture alive in the working style of Italians. But also affects the productivity and development of business at a higher level.
- Complex Business System
Italy ranks 87th in having the freest economy. A business system is highly interrupted by bureaucracy, corruption, partial political system, and other religious factors.
Business leaders need to focus on various other factors to develop their business rather than only focusing on business strategies. Many startup companies fail to develop due to complex and rigid business systems.
- Delays in Getting Started with Business
Italy ranks 98th on starting a business at ease among 190 countries. It grabs 58th position among 190 countries in developing a business. Among 13 cities of Italy, getting started with business requires a week after completing legal procedures.
- Construction Pain and Property Management
The Legal procedures and development of an estate for the company in Italy require a lot of time and energy. Granting permission requires 14 days of the procedure and takes up to 198 days. The cost of the warehouse is 4.6% of the value.
Corruption and hierarchy are the two major problems delaying the process. Moreover, the labor cost is high and requires more time for construction. Property documents and enforcement of contracts take to 1420 days which requires the completion of 48 procedures.
- Electricity and resolving insolvency
Electricity connection approvals require a large amount of time. It takes up to 100 days for connection approval. The technical work of wiring and setup of proper connection takes up to 2 months.
Insolvency whirls are major issues, ones started that never end. It takes almost 2 years to overcome the insolvency and about 22% of the estate to recover from the loss.
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