Bureaucracy in Italy the shocking cost for SMEs

  • WorldScope
  • |
  • 26 October 2024
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The Italian public administration is among the least efficient in Europe in terms of offering digital services, resulting in long waiting times for the release of permits and authorizations. This is what emerges from a report by the Cgia Research Office. According to the Artigiani di Mestre, progress in the quality of public services is slow, due to the habit of administrations to request data and documents already in their possession, a habit that has become entrenched over time. These poor services have a significant economic impact.

According to OECD data, Italian small and medium-sized businesses sustain an annual cost of approximately 80 billion euros related to bureaucratic procedures. The difficulty in following the regulations imposed by the public administration is felt by over 73% of Italian entrepreneurs. Among the 20 countries in the Eurozone, only Slovakia (78%), Greece (80%) and France (84%) record a higher percentage of dissatisfied entrepreneurs than our country. The average in the Eurozone is 57%.

According to the Regional Competitiveness Index (RCI), the Autonomous Province of Trento stands out as the most competitive Italian reality, ranking 158th out of 234 territories monitored within the European Union. By cross-referencing data from the Bureau van Dijk’s Orbis database with those of Open Civitas, it emerges that the average productivity of companies is higher in areas where the public administration operates with greater efficiency, such as in Northern Italy.

On the contrary, in the regions of Southern Italy where the legal system is lacking, the healthcare system is struggling and the infrastructure is insufficient, even local businesses suffer in terms of competitiveness. The most virtuous province in Italy is Trento, with an IQI 2019 index of 1; compared to the previous ten years, it has gained two positions at a national level. Trieste and Treviso follow in the ranking of the best-performing provinces. Just off the podium are Gorizia, Florence, Venice, Pordenone, Mantua, Vicenza and Parma. Finally, the least competitive regions include Catania, Trapani, Caltanissetta, Crotone and Vibo Valentia.

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