Foreign business owners on the rise in Italy

Rome: The number of foreign entrepreneurs in Italy is on the rise while Italian business owners are declining, according to a research carried out by the Association of artisans and small enterprises in the Veneto city of Mestre (CGIA).

Opening a new business in Italy is an increasingly common step for foreigners, even as more Italian-owned companies are shutting down, according to a new study.

Over the past decade, the number of active companies led by foreign-born business owners has risen by 29.5 percent (+133,734), while those run by Italians have decreased by 4.7 percent (-222,241).

Out of Italy’s 5,097,617 active companies, 586,584 (or 11.5 percent of the national total) are owned by foreigners, according to the research center of the Association of Artisans and Small Businesses in Mestre (CGIA). The study attributes this trend in part to the demographic changes that have taken place in Italy in recent years.

Despite challenges such as high taxes, excessive bureaucracy, energy costs, expensive rent, and an ongoing sense of economic instability, self-employment remains appealing to many foreigners. Between 2013 and 2023, only seven of the 105 Italian provinces monitored saw an increase in Italian entrepreneurs compared to their foreign counterparts.

These seven provinces, where more Italians than foreigners have started businesses, are all in the South: Catania, Messina, Cosenza, Siracusa, Nuoro, Vibo Valentia, and Palermo. The trade and construction sectors have the highest concentration of foreign entrepreneurs, with nearly 95,000 foreign-owned trade businesses and 156,000 in construction. Foreigners represent 15.2 percent of trade activities and 20.6 percent in construction.

Together, these nearly 351,000 companies account for 60 percent of all businesses owned by foreigners in Italy. The third most popular sector is the restaurant industry, with 50,210 foreign-owned establishments, making up 12.7 percent of all restaurants in the country.

Romanian entrepreneurs top the list of foreign business owners in Italy, with 78,258 individuals. They are followed closely by the Chinese (78,114), Moroccans (66,386), and Albanians (61,586).

The study also highlights significant growth among certain nationalities. Compared to ten years ago, Moldovan entrepreneurs have increased by 127 percent, Pakistanis by 107 percent, and Ukrainians by 91 percent.

Over the past decade, Naples experienced the highest growth rate of foreign entrepreneurs, increasing by 109.3 percent between 2013 and 2023. Other notable growth areas include Brindisi (+63.2 percent), Taranto (+61.8 percent), and Trapani (+54.9 percent).

In absolute terms, the most significant increase occurred in Milan, which saw 30,482 new foreign-led firms, followed by Naples (+15,399) and Rome (+11,690). Overall, the metropolitan city of Milan hosts the highest number of foreign entrepreneurs, with 92,168 businesses, followed by Rome with 69,343 and Turin with 37,777.