Forms of Enterprise in 20th Century Italy

Forms of Enterprise in 20th Century Italy

Boundaries, Structures and Strategies

Edited by Andrea Colli and Michelangelo Vasta

Taking an historical perspective, this unique book highlights the evolution of the many diverse forms of business enterprise, and discusses the contribution of these different types of firm to the economic growth of Italy.

Chapter 9: Industrial Policy and Artisan Firms (1930s–1970s)

Giuseppe Maria Longoni and Alberto Rinaldi

Subjects: economics and finance, economic psychology, industrial organisation


* Giuseppe Maria Longoni and Alberto Rinaldi INTRODUCTION 9.1 One of the main differences between Italy and the other major industrial countries concerns the average size of firms. In the 1990s, a remarkable 58 per cent of employees in the Italian manufacturing sector worked in companies with fewer than 50 employees – and 26 per cent in micro-firms with fewer than 10 employees. In contrast, the corresponding figures were only 18 and 4 per cent in the US, 20 and 6 per cent in the UK, 12 and 5 per cent in Germany, 31 and 5 per cent in France, and 47 and 18 per cent in Japan (Giannetti & Vasta 2005). Some economists identify the reason for the prominent role played by small and medium-sized enterprises (SMEs) in Italy with the events of the 1970s, when the crisis of Fordism and mass production, manufacturing decentralisation and the growth of industrial districts spread industrialisation from the north-west towards the north-eastern and central regions (NECRs) of the country (Brusco & Paba 1997; Bellandi 1999). Historical research, on the other hand, seeks the long-term roots of the predominance of SMEs in Italy. Cafagna (1989) and Federico (1994a) stress the historically dualistic nature of Italian industry, emphasising the dynamic role of SMEs in traditional sectors, and demonstrating their ability to exploit the comparative advantage of a country with very easy access to labour. These authors underscore the ability of SMEs to maintain their competitive advantage without requiring any form of state intervention, while larger companies operating in...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information