Italian SMEs: fragmentation reduces their weight, urgent tax incentives needed

Unimpresa calls for a national strategy to foster business networks and competitiveness

Italian small and medium-sized enterprises (SMEs) remain the backbone of the economy, employing 76.5% of the workforce and generating about 65% of added value. However, their share of turnover has dropped from 49% in 2012 to 42% in 2022 for firms with fewer than 49 employees. This reflects a structural weakness: fragmentation.

At the end of 2024, 9,630 business network contracts were active (+8.1% in one year), involving about 50,300 firms(+6.5%). Yet these networks remain small (4–5 members on average) and concentrated in northern Italy. Meanwhile, business groups already generate 64% of national turnover and 57% of added value, proving the benefits of aggregation.

Between 2014 and 2023, Italian medium-sized industrial firms recorded a 31.3% increase in labor productivity, outperforming France, Germany, and Spain. Aggregation is therefore not only an opportunity but a strategic tool for competitiveness.

Digitalization shows progress but also gaps: only 8.2% of SMEs with at least 10 employees use artificial intelligence technologies, while just 26.2% reach a high digitalization level. Shared investments through networks could bridge this gap.

Unimpresa proposes targeted tax incentives: tax credits for mergers, deductions on joint investments, hiring subsidies, temporary exemptions from local taxes, and priority access to EU funds. A shared accounting cloud with tax authorities is also suggested to simplify inspections.

Without these measures, Unimpresa warns, the Made in Italy relaunch risks remaining a slogan. SMEs need concrete tools and strategic vision to grow, innovate, and compete globally.