Observatory on family businesses

Collection, processing and dissemination of statistics and economic information on family businesses in Italy

POPULATION

The field of observation related to the project Model Elaboration for Promotion and Analysis of Italian Family Business is represented by the universe of capital-based companies enrolled to the Register of the Chambers of Commerce. It is a public register, stipulated in the Civil Code, that had complete implementation from the beginning of 1996, with the Law associated with the reorganisation of the Chambers of Commerce and the following implementing Regulation.
The Business Registration can be defined as the registry of the enterprises: you can found in fact data concerning constitution, changes, cessation, of all the enterprises with any juridical form and sector of economic activity, with headquarters or local units on the national territory, as well as the other subjects established in Law.
The Companies Register thus provides a complete picture of the legal situation of each enterprise and it is a fundamental file for the elaboration of indicators of economic and entrepreneurial development in every area of affiliation. The information that can be accessed through this service concern
6 million recorded enterprises in Italy;
10 million people (entrepreneurs, shareholders, directors, auditors);
900,000 financial statements of corporations applied for every year.

METHODOLOGY

Data of the Observatory AUB

The starting point for the analysis of the project Model Elaboration for Promotion and Analysis of Italian Family Business is the data set of the AUB Observatory (AIdAF, UniCredit e Università Bocconi) on the Italian family business. According to them the italian family companies with an annual turnover exceeding 20 million euro are considered to be:

  • One or two families hold at least 50% of the capital (if not listed);
  • One or two families hold at least 25% of the capital (if listed);
  • The firm is controlled by another legal entity which satisfies one of the two criteria stated above.

Data from the Observatory set up by UCV

Starting from a subset of 2,000 corporations based in Veneto region which are a source of AUB Observatory, Unioncamere Veneto has created a new dataset, linking the information of Infocamere on ownership.

Data quality control

The new data set was subjected to a thorough quality control of data, by doing the following these steps: elimination of duplication, verification of the completeness and accuracy of information, sample testing with historical certified company registration.

Definition of the Algorithm

For the creation and definition of the algorithm were used the following information: company tax code, social security number, name and surname (company name) partner, share of partner ownership. Furthermore have been created some new functional variables for the correct identification of the nature of the shareholders (physical and legal person) and of the ownership of the business.

ALGORITHM

According to the UCV Observatory the share capital societies have been considered family business distinguishing the typology of ownership structure.
Particularly:
Case 1: corporate structure composed only of individuals
Companies that are at least 50% (+1) owned by one;
The subsidiaries at least 50 percent (+1) by two owners (same family name);
The subsidiaries at least 50 percent (+1) owned by three or more owners (same family name);
Case 2: corporate structure composed of legal persons
The subsidiaries at least 50 percent (+1)owned by a family business;
The subsidiaries at least 50 percent (+1) owned by two family businesses;
The subsidiaries at least 50 percent (+1) owned by three or more family businesses;
Case 3: mixed company structure (physical and legal persons)
The subsidiaries at least 50 percent (+1) owned by two or more partners (same family name and same company name).

SOURCES

The sources used from the UCV observatory are:

Companies Register of the Chambers of Commerce for information concerning joint-stock companies and form of ownership.

AIDA BvD for economic-financial performance of companies.

10,231

In Italy the family businesses are 10,231, the 65.1% of all companies with a turnover exceeding 20 million Euros. In Veneto is 70.8%. Family businesses generate around 790 billion euros in revenue and 177 billion euros in value added, employ approximately 2.3 millon people, of whom 1.5 million in Italy (corresponding to 13.4% of the employees of Italian businesses in the industrial and the services sectors). Source: AUB Observatory

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Veneto 70.8%
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Lombardy 53.2%
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Piedmont 61.3%
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Molise 74.5%
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Umbria 70.4%

Family Businesses in Italy

COMPANY SIZE

Absolute values and percentages

Source: AUB Observatory

10,231 family businesses
6,047 small companies (59%)
Companies with a turnover between 20 and 50 million euros at the end of 2013. Source: AIDA
4,184 medium and large companies (41%)
Companies with a turnover exceeding 50 million euros at the end of 2013. Source: AIDA

FAMILY BUSINESSES ARE MORE ACTIVE IN MANUFACTURING AND TRADE SECTORS

FAMILY BUSINESSES BY SECTORS (VALUES %) SOURCE: AUB OBSERVATORY
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Manufacturing 40.0%
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Wholesale trade 16.8%
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Financial and real estate activities 14.6%
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Other services 5.7%
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Retail trade 5.2%
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Vehicles 5.0%
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Business services 3.9%
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Construction 3.7%
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Transport and logistics 3.7%
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Energy-Extraction 1.4%

THE MEDIUM AND LARGE FAMILY BUSINESSES IN 2007-2013 PERIOD

SOURCE: AUB OBSERVATORY