Article: Innovative small start-ups in Italy: a successful business model? Journal: International Journal of Management and Enterprise Development (IJMED) 2021 Vol.20 No.4 pp.405 - 455 Abstract: In recent years, the ecosystem of innovation in Italy has been populated by new players. This paper aims to investigate the validity of innovative start-ups' business model. A large sample of innovative start-ups was developed to understand how they performed from an economic-financial point of view, in the period from 2014 to 2017, starting from the consideration of six fundamental parameters: localisation, sector, skills, finance, assistance, and control. A disaggregated analysis is carried out, with the typical tools of statistical analysis of variance applied to balance sheet data, to understand differences in profitability and/or financial structure between innovative start-ups in different geographical areas within the Italian economic system. The results show good profitability, with average values higher than those normally recorded in traditional forms of business. However, further evidence relates to the increase in debt, with a low propensity for internal financing. Finally, the analysis on the dependence of performance from the geographical variable showed that the success of this particular business model is linked to the characteristics of the geographical macro-area. Inderscience Publishers - linking academia, business and industry through research

Title: Innovative small start-ups in Italy: a successful business model?

Authors: Guido Migliaccio; Pietro Pavone

Addresses: Department of Law, Economics, Management and Quantitative Methods (DEMM), University of Sannio, Via delle Puglie, 82 – (82.100), Benevento (Bn), Italy ' Department of Law, Economics, Management and Quantitative Methods (DEMM), University of Sannio, Via delle Puglie, 82 – (82.100), Benevento (Bn), Italy

Abstract: In recent years, the ecosystem of innovation in Italy has been populated by new players. This paper aims to investigate the validity of innovative start-ups' business model. A large sample of innovative start-ups was developed to understand how they performed from an economic-financial point of view, in the period from 2014 to 2017, starting from the consideration of six fundamental parameters: localisation, sector, skills, finance, assistance, and control. A disaggregated analysis is carried out, with the typical tools of statistical analysis of variance applied to balance sheet data, to understand differences in profitability and/or financial structure between innovative start-ups in different geographical areas within the Italian economic system. The results show good profitability, with average values higher than those normally recorded in traditional forms of business. However, further evidence relates to the increase in debt, with a low propensity for internal financing. Finally, the analysis on the dependence of performance from the geographical variable showed that the success of this particular business model is linked to the characteristics of the geographical macro-area.

Keywords: entrepreneurship; innovative small start-ups; balance-sheet analysis; variance; Italy.

DOI: 10.1504/IJMED.2021.119525

International Journal of Management and Enterprise Development, 2021 Vol.20 No.4, pp.405 - 455

Received: 23 Mar 2021
Accepted: 03 Jul 2021
Published online: 08 Dec 2021 *

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Title: Innovative small start-ups in Italy: a successful business model?

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