KEY LEARNING POINTS: FINAL PROJECT
ITALY
Question 1 –
•There are an estimated six million companies in Italy, of which, 73% are family
businesses.
•An astounding 82% of all private companies in Italy are family businesses.
•Family businesses in Italy account for 57.1% of the country’s total medium and
large sized private businesses.
•Additionally, 43% of family businesses in Italy are multinationals and conduct
business abroad.
•These international sales are expected to increase to 53% for family
businesses in Italy.
•Italy has the highest number of members in the Hnokiens association.
•This association includes family companies, older than 200 years, which are
still largely owned by the founding family.
•The top three main economic activities of family businesses in Italy, with revenues
above 50 million Euros, were 41% Manufacturing, 28% Wholesale and Retail
Trade, and 11% Professional, Scientific, and Technical Services.
•Family businesses employ 52% of the employees working in medium to large sized
private companies in Italy.
•It has been found that 80.1% of family businesses are headed by a family member
of the company’s founder.
•A survey in 2012 showed that 40% of family businesses plan to pass on stake and
management position in the company to the successor generation.
•In addition, 25% plan to pass on their stake, but utilize professional managers to
run the business. This was stated to be due to successor generations’ “lack of
skills.”
Question 2 –
•Italy’s Gross Domestic Product (GDP) in US dollars was $2.013 trillion as of 2012.
•Unemployment has consistently grown over the past five years. It was recorded as
7.8% in 2009, 9.5% in 2012, and 11.7% in January of 2013. The increase in
unemployment from 2012 to 2013 is .5% more than the total increase for the
previous four years overall.
•Inflation has also grown from .8% in 2009 to 2.5% in 2012.
•Total exports reached $483.3 billion in 2012 and accounted for 26.7% of Italy’s
GDP.
•Major exports include the following: precision machinery (18%), metals
and metal products (13%), clothing and footwear (11%), motor vehicles
(10%), pharmaceuticals and chemicals (7%), and food (6%)
•56% of all exports go to other European Union countries
•Italy’s major export partners include Germany (13%), France (12%), and
US (6%)
•As of 2011, Italy had a debt of $45.9 billion USD
•Astonishingly, the New York Times reported that of the six million companies in
Italy, an average of 1,000 have gone “belly up” everyday!
•Tax increases and spending cuts have caused economic issues to grow worse.
