Ernst&Young released the “EY G20 Entrepreneurship Barometer 2013” with the Italiancountry report with a contribution of Stefano Neri Neri, TerniEnergia Chairman and CEO.

Here is an extract:

Key insight: revitalizing Italy’s entrepreneurial spirit

Stefano Neri, Chairman and CEO, TerniEnergia S.p.A, Italy
 

Stefano Neri is Chairman and CEO of TerniEnergia, a leader in the field of renewable energy and energy efficiency. Founded in 2005, the firm is listed on the Star segment of Borsa Italiana and was selected from among 30 finalists to receive the EY Italy Entrepreneur Of The Year™ 2011 Emerging Award.

Stefano Neri has never seen entrepreneurial spirit in Italy as depressed as during recent years. The country’s businesses are being held back, he says. “Companies have to bear a heavy tax burden. They pay tax at an aggressive rate in proportion to the number of employees regardless of revenue or profit. It’s a serious disincentive to entrepreneurs. It makes it hard to start a company and even harder to hire people and grow.”

A related issue is weakness of government support for much-needed R&D. “We’ve invested large sums of money and time into our technology. At the moment there are no deductions for R&D. This also discourages outside investors from investing into Italy,” he adds. “Technology-intensive companies should be allowed to reinvest that in further development without a tax penalty.”

In addition, Neri notes that high levels of administrative complexity also stifle entrepreneurship, arguing that a simpler online, one-stop shop could be a major help to new businesses. “We need to streamline bureaucracy in Italy and consolidate all the official processes required for setting up and running a business. We have so many different administrative bodies with their own paperwork and procedures.”

Despite such challenges, he remains positive about the prospects for Italian entrepreneurship ahead: “Once the need for change is recognized, it is possible for things to move very quickly.”