Italian SMEs Face Banking Hurdles Despite Overall Credit Increase

Rome, Italy – A recent analysis by the CGIA Mestre reveals a concerning trend for small and medium-sized enterprises (SMEs) in Italy, despite a modest overall increase in bank lending. While total credit disbursements to Italian companies rose by 5 billion euros in November 2025 compared to the same period in 2024 – a 0.8% increase – smaller businesses are being left behind, facing difficulties in securing financing.

Disparities in Lending

The CGIA Mestre’s report highlights a significant disparity in access to credit. Smaller production companies, defined as those with fewer than twenty employees, which constitute 98% of the Italian entrepreneurial fabric, have not benefited from this upturn. These businesses, including artisans, shopkeepers, and independent contractors, provide employment for 52% of the Italian workforce.

Why the Discrepancy?

The concentration of financing on larger industrial groups is attributed to two primary factors: risk assessment and regulatory requirements. Banks perceive smaller businesses as inherently riskier due to the greater volatility of their revenues and their increased dependence on the economic cycle. Prudential rules necessitate that banks maintain higher capital reserves for loans deemed riskier, such as those extended to micro and small enterprises. The fixed costs associated with processing loan applications also remain relatively consistent regardless of the size of the business, making smaller loans less profitable for banks.

Regional Variations in Credit Access

The situation varies across different regions of Italy. In Ferrara, credit to companies decreased by 3.9% in 2025, amounting to 2 billion and 178 million euros, a decline from the 2 billion and 276 million euros disbursed in 2024. This represents the worst performance among all regional capitals in Emilia-Romagna. Bologna and Ravenna also experienced declines in lending, at 2.7% and 2.1% respectively. However, Piacenza saw an increase of 118 million euros (+3.6%), and Modena experienced a substantial rise of 468 million euros (+4.1%).

Italian SMEs: A Cornerstone of the Economy

Despite these challenges, Italian SMEs remain a vital component of the national economy. According to Business Online, as of 2025, there are over 4.7 million SMEs in Italy, representing 99.9% of all companies and employing more than 14 million workers . These businesses are recognized for their innovation, flexibility, and strong ties to local communities.

CGIA Mestre: Supporting Italian Businesses

The CGIA Mestre, an association of artisans and small businesses, has a long history of supporting Italian entrepreneurship, offering training programs and advocating for policies that benefit SMEs. The organization also hosts events like the Premio Mestre di Pittura in 2026.

The CGIA Mestre also reported on a slowdown in Veneto’s exports in December 2025, with declines in sales of household appliances, eyewear, and mechanical goods, impacted by US tariffs.