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Starting a business in Italy: recent reforms to cut time and costs

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  • Roberta Occhilupo

    () (Banca d'Italia)

Abstract

Regulatory complexity and bureaucracy inefficiencies increase the time needed and the cost of starting a business and therefore reduce the competitiveness of a country. Since the early 1990s Italy, in the same way as other developed countries, has been trying to introduce some reforms to boost the efficiency of general government and reduce bureaucracy. This has only been partially successful results. In 2010 two new reforms were introduced. The first allows an entrepreneur to start a business by electronically filing a form (named SCIA, Segnalazione Certificata di Inizio Attivit�) declaring that the firm complies with all the legal requirements. The SCIA replaces ex ante with ex post public administration controls. The second reform improves the local one-stop-shops regulation (the SUAP, Sportello Unico per le Attivit� Produttive). This paper evaluates the effectiveness of the two reforms. The time required and the cost of starting a business can be effectively reduced only if the administrative simplification tools are coupled with other reforms that eliminate unnecessary regulatory barriers, rationalize regulation, and reorganize the public administration.

Suggested Citation

  • Roberta Occhilupo, 2011. "Starting a business in Italy: recent reforms to cut time and costs," Questioni di Economia e Finanza (Occasional Papers) 110, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_110_11
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    File URL: http://www.bancaditalia.it/pubblicazioni/qef/2011-0110/QEF_110.pdf
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    References listed on IDEAS

    as
    1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 1-37.
    2. repec:hrv:faseco:30747190 is not listed on IDEAS
    3. Majone, Giandomenico, 1997. "From the Positive to the Regulatory State: Causes and Consequences of Changes in the Mode of Governance," Journal of Public Policy, Cambridge University Press, vol. 17(02), pages 139-167, May.
    4. Djankov, Simeon & McLiesh, Caralee & Ramalho, Rita Maria, 2006. "Regulation and growth," Economics Letters, Elsevier, vol. 92(3), pages 395-401, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    time and costs for starting a business; regulation entry; public administration control; administrative simplification;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • K2 - Law and Economics - - Regulation and Business Law

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