Comments on: The Real Reason Italy Sucks at the Startup Game

By: Lorenzo B.

Lorenzo B. — Sun, 30 Nov 2014 09:32:54 +0000

I don’t agree with a good share of this analysis. Now everything is measured against the word “start-up” which doesn’t make any sense. It’s just another way of reading the world with the eyes of the American way.
In Italy we had for decades millions of small, very small, artisan companies managed but very active entreprenuers. Several of these companies, used and still use to have an international approach as in most cases 90% of their revenues comes from exports. I was born in a mountain village with a very strong Catholic tradition and way of life and where a good share of the population had a company: textile, mechanical textile, chemical textible ones. Enterprenuers went through business cycles and failure was part of the game. People used and still use to have houses on top of their companies factories, just to give you an idea of how entrenched is the idea of starting a business, managing it and facing the consequences of losing everything.
This analysis is correct when it comes to the burdner of burocracy, regulations, constraints and the fact that Italians might believe that there are forces facing their destiny which are not in their controlo is just a remark of this point. It shouldn’t surprise the analyst at all.
What Italy is facing is a restructuring of its own economy shaped by several factors which are internal of course but also external like globalization, the integration of new markets in the global economy. This is a country which still relies a lot on industrial production, expecially in the north.

By: SRL Semplificata

SRL Semplificata — Sat, 29 Nov 2014 16:27:00 +0000

Nowadays young people have more difficulty to finding a job. for those people this article has so much advanced info about start a business in italy.

By: Riccardo

Riccardo — Sun, 11 Mar 2012 00:20:38 +0000

Sure?

By: Damian Scavo

Damian Scavo — Tue, 29 Nov 2011 16:02:02 +0000

I totaly agree with the publication.
I can also add that thanks for such an avarage standard, the few that think different are in one incredible position of opportunity: almost zero competition…
So, it’s time to do it right, and do it harder as never before.

By: Marco

Marco — Tue, 29 Nov 2011 14:49:26 +0000

In reply to Giuseppe. Giuseppe, great analysis. I am an entrepreneur too and I talk everyday with other entrepreneurs about this. In my opinion, your last sentence is (unfortunately) the sinthesis of the current situation.

By: Jeune

Jeune — Tue, 15 Nov 2011 00:56:17 +0000

We have eerily the same Startup scene here in the Philippines (no Angels and VCs) and the I do see the same reasons such as fear of failure, success is pretty much not what you know but WHO you know. To think that Italy and Philippines are half a world from each other!

I would be interested to see stats for the Philippines on Fatalism as well.

And LOL on the “I refuse to believe that the real Italian dream is to become a soccer player “

By: nick bauman

nick bauman — Mon, 14 Nov 2011 03:50:09 +0000

I remember the Italian film series “The Best of Youth” starring Allesio Boni. This topic was touched upon in that series very poignantly.

And while America is supposed to be the land of second lives and second chances, I think it’s changing here, too.

By: PJ Brunet

PJ Brunet — Sat, 12 Nov 2011 03:20:16 +0000

I wouldn’t put much faith in “success” surveys. In the US people check “strongly agree” on those questions to get hired/promoted. There’s plenty of people here who think the “1 percent” controls everything–read the news lately?

Fact is, no Italian knows his/her destiny. I’d like to see you find one Italian who would seriously argue otherwise. Maybe he can pick some lottery numbers for you 😉

If fatalism is truly a “failure signal” I would argue you’re more likely to find those people reading Hacker News or Slashdot, you know the “science” people who believe we’re a series of robotic responses, psychopathic smiles and tears for survival. Sound familiar? Our brains will be reproduced in a lab, etc. How’s that for some fatalism?

By: Filippo Gregoretti

Filippo Gregoretti — Fri, 11 Nov 2011 12:08:41 +0000

I did open an IT startup in Rome, back in 1994, and kept it alive and well until 2005.
I do agree with your analysis. Although I wouldn’t motivate the feeling that your success doesn’t depend entirely on you with some catholic cultural heritage, but rather with the reality of facts that almost everything here is made through connections, and quality often means nothing compared to beng part of a smaller or larger masonic group.
The reason why I shut down my company, was because I was tired to support and fight with the eternal enemy of every business in Italy, the italian tax system.
I won’t go into detail, you know them all already probably.
Anyhow, people do evade taxes here, because otherwise there is no chance of survival.
I often think that italian laws were written by Pirandello, or by Monty Python in a more international standard of absurdity.
Having tried it on my own skin, I can confirm that it is almost impossible here to run a small business in tota honesty. I tried it, and although it was successful, most of the earnings went to feed the monster with its absurd requests. Often, tax laws, ask money from you that you can’t have from a mathematical point of view. And many people borrow money from banks just to pay “next year prospective tax”.
Yes, in Italy, you also pay in advance taxes for next year. Funny isn’t it?
I advice to all italians NOT to start a business in Italy, unless you are ready to face some tax evasion.
Otherwise, move to the uk, 20% profit tax, and you can deduct even tube tickets.

By: Gerald Greene

Gerald Greene — Thu, 10 Nov 2011 22:34:30 +0000

In reply to sebastian.

Italy has a different mentality than the US does, that’s exactly right. The US has had the mentality of going west, taking risks, and trying to create fortunes. Unfortunately this mentality not only pervades the best and the brightest than countries have, it infiltrates the government and makes laws that make starting up a company harder than it has to be. This is why the US (despite its numerous flaws) is still the best country in the world for creating new businesses. I don’t think it has to be this way because I know there are a lot of good developers in Italy and a lot of smart business people with great judgement. It can be hard to find time to create stuff, but the technology is often easy if you can find time to outsource some of the marketing stuff (use Google, use Facebook, use 3rd party services at http://www.buyfacebookfansreviews.com there are plenty there, use blogs, use Twitter, etc). This is the biggest problem. As Ayn Rand said (and I don’t thing she’s perfect but she had a few good ideas), America is a country of money. This isn’t the case with the rest of the world. Now, not saying that Italy is bad or anything. They along with the rest of Europe enjoy life more and value family and companionship a bit more, which might lead to better happiness for the most number of people. But its not a climate conducive to creating new businesses. As an American, I love Europe and may ultimately end up retiring there one day, but building up a business is so much easier in the US because this is what this country is all about. Other countries might have a lower cost of doing business, but this is where stuff actually gets done.