Growth Under Pressure: What’s Blocking Italian SMEs?

July 29, 2025

In 2025, Italian SMEs continue to represent the core of the national economy.
However, despite their resilience, they face persistent structural challenges that limit their ability to scale.
From tax pressure and limited credit access to weak governance and asset exposure, these obstacles are not just temporary, but deeply embedded and require strategic correction.
Understanding them is the first step toward unlocking long-term growth.

Italian SMEs: Structural Challenges Blocking Growth

A Tax Burden Among the Highest in Europe

Today, Italian businesses face an effective tax burden above 58%, including direct taxes, VAT, and mandatory contributions.

This reality severely limits reinvestment, expansion, and capitalization.

Thus, entrepreneurs often delay growth decisions — or take defensive measures that reduce long-term value.

What’s missing is structured tax planning, using legal and compliant tools that transform fiscal weight into opportunity.

Access to Credit Remains Difficult

Despite recent improvements, many SMEs still find it difficult to access credit.

This is often because of weak balance sheets, fragmented reporting, or lack of negotiation leverage.

Consequently, this creates a vicious cycle:

weak financials → poor rating → limited credit → reduced liquidity → no investment

Without proper financial structuring, leverage becomes a constraint, not a catalyst.

Asset Protection Is Often Neglected

Over 60% of SMEs in Italy still operate without protecting the personal wealth of the entrepreneur.

In other words, they rely on a single legal entity, with no shield in place.

As a result, a lawsuit, tax dispute, or sudden liquidity crisis can threaten both the company and the family behind it.

That’s why tools like holding companies, trusts, and asset shields are no longer optional — they’re critical safeguards.

Family Governance and Role Confusion

Around 78% of Italian SMEs are family-run.

While this offers identity and stability, it also limits governance evolution.

In fact, overlapping roles and emotional influence can lead to governance breakdowns and succession delays.

Eventually, this undermines the company’s growth potential.

Difficulty Attracting and Retaining Key Talent

Unlike large corporations, most SMEs lack advanced tools to reward key people.

They often overlook:

• structured welfare plans
• tax-optimized fringe benefits
• long-term incentive schemes
• share-based or growth-linked contracts

Therefore, high turnover and lack of internal stability remain widespread.

From Fragmentation to Integrated Growth Strategy

To compete effectively, SMEs must shift their mindset.

Instead of reacting, they need to act with foresight.

That means integrating:

• fiscal planning
• legal structure
• financial strategy
• governance and human capital into a single, coordinated approach

The Missing Piece: Unified Advisory

Too many SMEs still receive fragmented advice from tax accountants, lawyers, HR consultants or banks — without a central strategy.

This is where SBF Capital comes in.

We help business owners restructure their companies with clarity, legality and strategic intent — from tax to credit, from governance to growth.

Let’s Build Your Growth Plan

We offer a confidential and personalized review of your current business and fiscal setup.

🔗 Reach our LinkedIn Page
✉️ Or Contact Us for an initial consultation.

Because in 2025, running a business is not enough.

It must be structured, protected, and planned.