BUS 320 – Family Business in Italy

Small and Medium-sized Enterprises in Italy, many of them family owned, account for 81% of the Italian workforce, compared to a European average of 67%. Many of the world’s most famous brands such as FIAT, Armani, Luxottica, Prada, Ferragamo and Benetton are Italian companies that remain firmly under family control.

Family businesses have long been the motor of Italian economic development. Is there something in the fabric of Italian society that leads to such a high proportion of family businesses? Are there lessons to be learned for family businesses elsewhere?

This course will explore the trends in family business, the challenges that they face, the keys to their success and the future, bright or otherwise, of these businesses.

Another unique feature of Italian business is the Industrial Cluster. Internationally, companies generally try to put as much distance as possible between themselves and their competitors. In Italy, however, competitors have often tended to cluster in tight geographical locations. We examine the reasons why, the implications of doing so and the likely future development of such clusters.

The first half of the course will focus on achieving a solid understanding of the theory of family business, what makes it successful and what threatens its survival, through classwork and visits. After the mid-term break, we will deepen our analysis by looking at a series of world-class Italian family businesses, to understand the secrets of their success.