A Reform Strategy for Italy

Abstract

In this chapter, we outline a reform strategy to promote an entrepreneurial society in Italy. From a Varieties-of-Capitalism perspective, Italy has been classified as a Mixed or Mediterranean Market Economy. It boasts a vibrant entrepreneurial economy of locally embedded, often family-owned small- and medium-sized firms that make up a major share of its economy. The main bottlenecks in the Italian entrepreneurial ecosystem are low ambition levels, the lack of skills and education flowing into entrepreneurial ventures, and a bureaucratically encumbered, non-meritocratic, business environment that feeds back into a low familiarity with ambitious entrepreneurship. Italy could strengthen its entrepreneurial ecosystem in several areas, ranging from boosting human capital investments to reducing the clientelism in the business environment and recruitment culture. This would open up more opportunities for the young and talented, eager to engage in productive and innovative venturing in Italy.