Today : Mar 18, 2025
Economy
21 February 2025

Drastic Decline Of Small Businesses Threatens Italy's Local Identity

Small enterprises face existential crisis amid e-commerce competition and economic pressures.

The plight of small businesses across Italy, particularly within the province of Macerata, is reaching alarming levels, as detailed data reveals significant closures and unsustainable conditions for survival. Reports indicate a decrease of 22% since 2018, where active commercial enterprises have plummeted from 8,136 to just 6,327 by early 2025. Maurizio Tritarelli, president of Cna Macerata, voiced his grave concern for the economic repercussions, noting: “The closure of a shop is not just an economic problem, but also a loss of identity and social cohesion.”

Between January 2023 and January 2025 alone, 1,223 businesses shut their doors, averaging 49 closures monthly, which underlines the intense pressure small stores are experiencing. To put this phenomenon in perspective, new registrations during this period totaled just 395, equalling only 16 new openings each month—hardly enough to counterbalance the growing losses.

The struggle is amplified by fierce competition from large e-commerce platforms, which has exacerbated the purchasing power crisis for families across Italy. Tritarelli explains how these intertwined issues erode the financial foundations of many local shops: “The data shows the growing difficulty for small shops to survive against the competition from large e-commerce and affects the vitality of small towns.”

Interestingly, this downward trend varies between communities situated within seismic zones and those outside. The regions inside these disaster-affected areas experience closure rates of approximately 15.5%, exceeding the 13.9% drop seen elsewhere—contrary to expectations of resilience following historical rebuilding efforts. Many establishments had already faltered following the earthquakes of 2016 and 2017, leaving only the most committed businesses to persist.

Tragically, the crisis is especially pronounced among personal service sectors, such as hairdressing, beauty services, and laundries, primarily attributed to continuous demographic decline and the abandonment of rural areas. Tritarelli claims, “Personal service businesses face the steepest decline due to the depopulation of internal regions,” emphasizing the dire straits these neighborhoods face.

The Cna, representing the interests of local businesses, insists on urgent action to support these struggling sectors. Tritarelli advocates for targeted governmental incentives to stabilize and rejuvenate the local economy. “We propose a tax credit dedicated to small businesses wanting to invest in more modern and efficient work tools,” he stated, urging institutions to step up support for investments spanning equipment for artisans, systems for personal services, and improved utilities for shops.

Finally, it’s worth recognizing the societal implication of losing these local enterprises. “It is not just about supporting the economy but preserving the very life of small towns,” Tritarelli concludes, underscoring how integral these shops are to community identity and cohesion. The survival of small businesses is pivotal not just for economic reasons but for maintaining the social fabric and cultural heritage of Italy’s small towns, which are at risk of fading away without decisive action now.