Access to finance
08 November 2009by Ina Dimireva -- last modified 11 November 2009
An overview of the sources of finance available to SMEs in Italy.
There are various types of subsidies and tax relief aimed at supporting companies in need of financial support. These can be granted by:
- the state
- the regions
- the provinces
- the European Union (supporting competitiveness in specific territorial areas and research and development sectors)
- the regional Chambers of Commerce
State, regional and Chamber of Commerce subsidies can also be funded by Community funds, called structural funds. Structural funds are allocated according to the National Strategic Framework Programme for regional development 2007-2013, agreed between Italy and the European Union, whose aim it is to enhance competitiveness and social cohesion.
The Institute for Industrial promotion (Istituto per la Promozione Industriale, IPI) is a technical agency supporting and assisting the Ministry of Economic Development in planning, defining and implementing policies and public interventions, in order to improve the Italian entrepreneurial system. The aim, in accordance with the Community Guidelines set down in the Lisbon Agenda, is to combine the need of strengthening all Italian businesses (small and medium enterprises in particular) by driving the structural trend of the productive system towards a more competitive approach.
Institute for Industrial promotion (IPI) [IT]
There are four main financing schemes addressed to enterprises:
- Financing for new businesses;
- Financing for existing businesses;
- Financing for internationalisation;
- Financing for research and innovation.
Tax relief for enterprises - Treasury Department [IT]
Incentives for enterprises - Ministry of Economic Development [IT]
Due to the many different kinds of financing schemes it is advisable to check out the websites of the local Chamber of Commerce, regions and provinces for detailed information.
Programmes
The National agency for inward investment promotion and enterprise development
To access funds, investors must submit a specific application to the National agency for inward investment promotion and enterprise development. The Agency provides advisory services to businesses.
National agency for inward investment promotion and enterprise development
The Agency has six different financing schemes:
- Tax relief for specific entrepreneurial initiatives (Programme Contracts);
- Investments for industrial revitalisation;
- Incentives aimed at promoting the creation of new production units and the upgrade of existing ones (self-entrepreneurship);
- Incentives directed to those who are unemployed or seeking first employment and wish to start up a small business (Self-employment);
- Incentives directed to non-profit companies ("Fertility Programme");
- Financial support directed to those wishing to acquire stakes in other companies (Investment Funds).
Funds support entrepreneurial development and are destined to entrepreneurs wishing to start up a business, expand existing companies and consist of forgivable loans and subsidised mortgages.
Industrial revitalisation [IT]
The Ministry of Economic Development provides businesses with different types of State financing and incentives. Financing can be in the form of tax credit (financial incentives aimed at supporting business development).
State subsidies - Ministry of Economic Development [IT]
Chambers of Commerce have set up information desks that assist enterprises wishing to expand abroad. Information on enterprise internationalisation can be found at the Foreign Trade desks of the Chambers of Commerce. The Globus website of the Chambers of Commerce is an important tool for finding out about the different types of financing and tax relief granted by various bodies and institutions.
Desks for Internationalisation
Incentives and tax relief - Globus [IT]
Information on business financing granted by the European Union is available on the Unioncamere website (which represents the Italian Chambers of Commerce and is based in Brussels).
Research and innovation financing are allocated via European, national and regional programmes, supported by Financing Funds.
Funds for training courses
Chambers of Commerce organise training courses for entrepreneurs in various sectors: service suppliers, food, manufacturing, agricultural, ecological and energy sectors. Courses are also directed at freelancers, aspiring entrepreneurs and entrepreneurs wishing to set up a new business.
Training courses - Italian Chambers of Commerce
According to funds available, some of the courses are financed by the European Social Fund (ESF). Some require a registration fee and entrepreneurs can consult local authorities to find out how to be party refunded with the so-called "training voucher" (refunds up to 80%).
Training vouchers are allocated by the Public Authority via regional or provincial notifications.
Personalised help and advice
The Chambers of Commerce assist enterprises in finding out about the different types of incentives and tax relief schemes. There is a full list of local offices on the Chamber of Commerce website.
The Agency for the Promotion of European Research (APRE) provides information, support and assistance on research and technological development programmes of the European Union.
Agency for the Promotion of European Research
The Enterprise Europe Network provides businesses with information and advice through its local partners.
Enterprise Europe Network – contact points – Italy
Source: European Commission
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