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Micro-entrepreneurs’ Financial and Digital Competences During the Pandemic in Italy

Author

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  • Alessio D’Ignazio

    (Bank of Italy)

  • Paolo Finaldi Russo

    (Bank of Italy)

  • Massimiliano Stacchini

    (Bank of Italy)

Abstract

We analyse new survey data from a representative sample of 1998 Italian micro-entrepreneurs to assess their level of financial and digital competences and to investigate whether these skills help them cope with unexpected shocks. Our findings indicate that financial literacy and digital skills of Italian micro-entrepreneurs are somewhat limited, particularly among owners with lower levels of education and one-person businesses. By controlling for several business characteristics, we also find that financial literacy is significantly correlated with the transition to more digitalized business models and with greater resilience to external shocks: financially savvy entrepreneurs were better able to build liquidity buffers prior to the COVID-19 crisis and access government aids during the pandemic. Regarding the role of digital skills in supporting businesses during the crisis, the empirical evidence is less conclusive.

Suggested Citation

  • Alessio D’Ignazio & Paolo Finaldi Russo & Massimiliano Stacchini, 2025. "Micro-entrepreneurs’ Financial and Digital Competences During the Pandemic in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 607-643, July.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:2:d:10.1007_s40797-024-00306-1
    DOI: 10.1007/s40797-024-00306-1
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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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