Many businesses in Italy are family-owned. This fact makes doing business in Italy difficult. Business owners are normally the patriarch of the family and lack management skills. They desire to maintain control over their business which limits their ability to globalize (Moran, et al, p.492). Italians specifically network to advance friends and family in their workplaces. It is important for foreigners wishing to do business in Italy to understand and use these connections to their advantage. As a stereotypical belief of foreigners, the mafia “family” does exist in the southern part of Italy/ Sicily and contributes to the chaotic region. This focus in not flattering to Italy which offers intersting business opportunities.
A consideraable amount of time needs to be invested in understanding the leadership hierarchy therefore, a considerable amount of management time is spent networking, maintaining or improving business relationships with the real decision makers (la gazetta, 2011).
Because of the SME’s (small management family-owned enterprises), it is important to not have unrealistic expectations of the same business norms shared by American business leaders. Most Italian business owners will not make decisions in the presence of the foreigner nor will they acknowledge the need for a formal business plan as being useful.
In spite of these roadblocks to doing business in Italy, there are still many opportunities to do business in Italy in such areas as life sciences, information and communication technologies, renewable energies, high quality consumer goods, high tech design and engineering products. (la gazetta, 2011).
References:
Abramson, N. R., Moran, R. T., & Harris, P. R. (2014). Managing Cultural Differences(9th ed.). London: Routledge.
Capuano, M. (n.d.). Challenges of Doing Business in Italy. Retrieved November 12, 2017, from https://www.lagazzettaitaliana.com/region-of-italy/7661-challenges-of-doing-business-in-italy
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