Italian SMEs to one billion consumers in India
A growing gross domestic product driven by socio-economic changes, open markets, and an e-commerce environment with the highest global growth rate. These are some of the factors that generate more opportunities in the Indian market for Italian SMEs. They were discussed at a conference organized at the Florentine headquarters of Banca Monte dei Paschi di Siena, among others by the Order and the Foundation of Florentine Chartered Accountants and Accounting Experts. But what is the role of the chartered accountant alongside small and medium-sized businesses that want to cross national borders commercially? In this interview, Pierpaolo Vannucci of Vannucci & Associati answers these questions.
What tools are available to Italian SMEs?
One instrument available to small and medium-sized enterprises is regional funding. For example, in Tuscany there is funding for the internalisation of businesses. There is still a provision of 2 million euro for Italian SMEs abroad, especially export companies. These companies have the possibility of having incentives of up to 50% of what they have to invest.
There are also other important investments. For example, SIMEST makes available 400 thousand euros to be returned in 7 years at a rate of 0.082% (practically nothing) for the capitalization of companies.
What are the incentives for a successful internationalisation process?
There are incentives for consortia of companies that finance a series of investments that the company has to make in order to go abroad. Every company that wants to go abroad will find its own instrument. Despite this, it is important to understand certain aspects:
- The different instruments available for internationalization
- The needs of Italian SMEs abroad
In addition, it is important that the company turns to its accountant, who certainly knows these tools, to get an accurate advice.
A concrete example of a company landed in the Indian market
Pietro Riccomini talks about his experience as CEO of Bionatura and the support he obtained:
We found excellent people who practically took care of our relations with India. After a few months of research on the product, we organized a trip to introduce it to possible Indian buyers. We were in India for 4 days and got interesting meetings with distributors and store group owners. During these days, we found out that the product we make as Bionatura does not exist in India.