Economy

Italy lacks big corporations

The French giant Danone can hire Shakira for its commercials. A small company can’t.

After the virtual departure of FIAT and the Russian takeover of Pirelli, there are even less Italian big corporations.

The Italian economy has traditionally been based on SMEs, some of which proved highly efficient even exploiting the ongoing crisis to evolve into “pocket multinationals”.

However, this dwarfism is not without consequences for the country. Italy took virtually no advantage of theĀ Information Revolution, it doesn’t produce PCs, tablets or smartphones. Its fashion SMEs were virtually destroyed by Chinese competitors. SMEs are often unable to absorb highly qualified and skilled workers, contributing to the malaise of Italian youngsters and to the decline of the University system. Finally, they have trouble accessing to credit, making them particularly exposed to the credit crunch.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s