Women entrepreneurs: it all starts with an idea.
Law no. 215 of 25/02/1992 (on female entrepreneurship) 3
The Women’s Enterprise Fund. 5
ON (Beyond new zero-rate businesses) 5
IF- Female Entrepreneurship. 7
The statistics on female employment in Italy are far from comforting. Unfortunately, in our country, women , even though they have on average a higher educational qualification than their male colleagues, struggle to enter the workforce , and when they do, few occupy positions of prestige and responsibility.
But at the same time, the number of women deciding to start their own businesses, either independently or in partnership, in a wide variety of sectors is growing. It’s precisely this world we want to explore, focusing especially on the tools and support women can leverage to start their own business .
Women entrepreneurs: starting with the idea
First of all, you need a good idea . It doesn’t necessarily have to be original (also because today the market is saturated in almost all sectors!), but above all, it has to be “feasible.” Feasibility ( intended as achievability) is the first characteristic that allows a business idea to become a reality. This means that our idea must be assessed against a series of factors: the local context , the economic benefit it can bring , and the initial investment required.
But it’s important to start with yourself to best develop a professional plan. Identifying your goals , skills, and aptitudes will help you get to know yourself better and develop a business idea that’s as in keeping with who you are as possible. This process will help you narrow down your scope and professional interests .
For example, if we want to open an advertising agency specializing in graphic design and promotion, we cannot do without knowledge of the main graphics programs and some basic marketing skills for selling services. Or if we wanted to open a clothing store, we would need to be sociable, approachable, and particularly good at interpersonal relationships. Knowing yourself and your aptitudes is the first step towards developing the right business idea.
Next, we analyze the target market (i.e., the one in which we want to position our business). More specifically, we’ll consider two essential market elements: supply and demand for the goods or services we intend to offer.
This operation involves a thorough competitor analysis . That is, always taking into account the territory in which we intend to locate our business, we will examine and catalog all the companies operating in the sector. We will identify the strengths and weaknesses of each. This will help us create a “differentiation” from similar businesses and develop specific strategies to differentiate our product or service.
Similarly, we’ll identify our business’s target audience , that is, the customers we serve or who will use our services. Here too, we’ll attempt to categorize them into categories. For example, if we want to open a pub, we’ll find out how many young people in their 30s live in our town and estimate how many of them might frequent our establishment.
We can use the “ demographic segmentation ” technique , which consists of dividing groups of potential consumers based on a series of demographic variables such as: family characteristics, size (single, large families, communities), age (childhood, adolescence, old age), social class, gender and level of education.
There are also other segmentation techniques (based, for example, on consumer behavior or product features) to identify the potential “offering” of our business.
What is a business plan?
The “feasibility” of a business venture is determined by drafting a summary document, called a ” business plan .” It’s crucial for a prospective entrepreneur to draft this document with the utmost care and attention, as it represents an analysis of their idea and therefore helps them understand whether they’re on the right path or whether it’s best to change course. How do you draft a business plan? We can try to write one ourselves, without the help of a consultant. As long as we remember to divide it into several sections. Let’s see how together.
- The business project
In this first part we must briefly summarize our business, what are the products/services that we intend to offer, the size of the target market, the economic results that we expect to obtain and in what time frame - The business group and its roles
In this second part the members of the business group are introduced, specifying the roles covered by each one and their specific skills. - The target market:
This chapter is very important and requires the utmost attention. It involves a thorough study of the market in which we intend to operate. In practice, we must include a series of information such as: any market research and surveys, market segmentation to identify potential customers, prospects for supply and demand development, etc. - Competition:
This fourth section highlights the current offerings in the target market and any limitations, so we can exploit our competitors’ weaknesses to our advantage. We should be able to assess the competitiveness of the target sector, identify any barriers to entry for potential competitors, and recognize substitute products/services. - Procurement
In this chapter you must identify the sources of supply, describe their main characteristics, understand the bargaining power of suppliers - The product/service offered
This part of the work highlights the needs we intend to satisfy with our product/service, the individual elements that compose it, the presence of any licenses and patents, the study of the product development (from the project stage to the final development stage) - The marketing plan:
This section also needs to be carefully compiled. Essentially, we need to identify a marketing plan, explain our pricing choices, and develop a precise communications plan. If the business involves selling products, we need to highlight the distribution channels chosen and any export or internationalization prospects. Additionally, we should be able to predict a minimum level of market development (over the next two years, for example). - The technical-industrial structure
If we intend to create a manufacturing company, in this chapter we will describe the production process, how it is carried out, the necessary machinery, production times, methods, and costs. And if we plan to include techniques and tools for monitoring the quality of the finished product. - Organizational aspects
In this part of the business plan we can highlight the quality and skills of the employees, the tasks they perform, the operational and organizational mechanisms that we intend to set up - Network:
This chapter is suitable for more complex or already established businesses. It involves identifying and establishing a network of allied businesses that can be profitable for your company. - Economic and financial forecasts
This chapter is usually difficult to prepare (unless you have specific technical expertise), as it involves preparing revised financial statements, accompanied by any additional data. Typically, economic forecasts for the business are prepared for a period of 3 to 5 years. - Attachments
This section is optional and may include: employee CVs, technical description of the production process, details of costs and planned investments, any market research, economic and financial forecasts.
Writing a proper business plan not only allows us to have a clear and immediate perspective on the business we want to create (in purely economic terms, and therefore in terms of feasibility), but also to gain easier access to the various available sources of financing.
Law no. 215 of February 25, 1992 (on female entrepreneurship)
We might have a good business idea, realize it’s “feasible” and therefore financially advantageous, but… we might not have the tools to make it happen. Which is equivalent to saying: we don’t have enough money to start our own business. What can we do? Women have a better chance in this regard.
The law is entitled ” Positive Actions for Female Entrepreneurship ” and aims to fund “female-led” businesses. Specifically, the following are eligible for funding under the law: sole proprietorships owned by women; companies in which at least 60% of the capital is owned by women; businesses in which at least two-thirds of the capital is owned by women; and businesses in which at least two-thirds of the board of directors are women. Law No. 215 requires a public tender to be issued in order to access the funding.
Typically, this call for proposals is issued once a year and published in the Official Journal of the Republic. From that date, applicants have 60 days to submit their application. All “small businesses” that meet the gender quotas specified above are eligible for the benefits provided by law. Small businesses (sole proprietorships, cooperatives, partnerships, and corporations) are defined as those with fewer than 50 employees or a balance sheet that does not exceed €2 million per year. This specification comes from a 2003 European Recommendation.
Then there are also “micro-enterprises.” Law No. 215 finances a wide variety of sectors: manufacturing, commerce, tourism, and agriculture. Access to financing is available to: start-ups; asset leasing (for at least five years); acquisitions of existing businesses, whether entirely or in part; and activities that introduce technological or organizational innovation to the product.
Financing can also be requested through Law 215 to expand and modernize obsolete businesses. However, the following are not eligible for financing: assets that have already been used; costs incurred for the purchase of land and buildings; costs to start and operate the business; costs to acquire and sell the business; taxes; and movable property not included among those required for the business. However, the following are eligible for financing: the business plan, if prepared by an expert; machinery and equipment; the costs of any patents and software; systems; and construction work.
Law No. 215 isn’t the only law supporting women-owned businesses. Over the past decade, government initiatives to promote female employment have multiplied, and in most cases, they specifically support female entrepreneurship.
There are numerous calls for proposals, and they differ between national and regional ones.
Among the most recent, we can certainly mention those promoted by the PNRR which provide for different forms of incentives which can be summarised as follows:
- Non-repayable financing
- Financing with a subsidized rate
- support
Let’s take a closer look at the specific calls for proposals available in 2023 to promote women-led businesses.
Specifically, the PNRR provides for spending of 400 million euros to be allocated to female employment.
Over 40% of the funds will be allocated to the southern regions (Campania, Basilicata, Abruzzo, Puglia, Calabria, Sardinia and Sicily).
In addition to the PNRR funds, there will be other funding – including non-repayable grants – allocated at the national level.
The Women’s Enterprise Fund
Among the most important is the 2023 Women’s Business Fund , which was created specifically to support all businesses headed by a woman.
The beneficiaries of the Women’s Enterprise Fund are:
- Companies and cooperatives formed by at least 60% women:
- Joint-stock companies with shares owned by women
- Individual businesses opened by women
- Female workers with VAT numbers
The Women’s Business Fund provides an allocation of up to 250 thousand euros for new businesses , or for those established less than a year ago.
The contribution will be distributed according to the following method:
- Coverage of up to 80% of expenses for projects up to 100,000 euros;
- Coverage of up to 50% of expenses for projects up to €250,000
To participate in the Women’s Business Fund, you must submit an online application through the official Invitalia website.
The Women’s Business Fund (currently closed due to lack of funding) is not the only facility supporting women-owned businesses. For a complete overview of the number of available calls for proposals and their respective characteristics and funding types, please visit inventivi.gov.it .
ON (Beyond new zero-rate businesses)
Among the currently active calls for proposals supporting female entrepreneurship are ON (Beyond New Zero-Rate Enterprises) and Smart&Start . Let’s take a look at what they’re all about.
ON, oltre nuovi imprese a zero-interest, is an incentive launched in April 2000 and aimed at developing new businesses, primarily for young people or women. The incentive can be applied for throughout Italy and specifically provides a non-repayable grant with a maximum spending cap of €3 million.
The following can participate in the call:
Small and micro enterprises provided that they have been established less than 60 months before the date of submission of the application;
Individuals intending to start a new business.
The costs that are allowed in this call are truly numerous and are:
when purchasing and/or renting a property
purchase of equipment or machinery necessary for production
expenses related to consultancy for opening
purchase of raw materials and consumer goods
purchase of licenses or patents
In this case, too, participation in the call for proposals is achieved by submitting an online application via the INVITALIA website.
Smart&Start 2023
Another interesting incentive designed to support new business start-ups is Smart&Start . This grant, launched in 2014, offers funding for a wide range of entrepreneurial activities. The incentive’s goal is certainly to start new businesses, but also to finance the technological innovation they need to become competitive both nationally and internationally.
Smart&Start provides a completely non-repayable contribution.
The subjects who can benefit from the call are:
companies established no more than 60 months before the application is submitted
foreign companies intending to invest in Italy
People who want to start a startup
The sectors covered by this call are numerous: tourism, culture, information technology, metallurgy, agriculture, commerce, energy supply, waste management, crafts, water management, construction, mechanical engineering, textiles, etc.
In all cases, however, the contributions are paid only to companies that present at least one of these characteristics:
- Important technological development
- Development of services or products in the digital sector
- Valorization of results in the research system
The Smart&Start initiative provides non-repayable grants ranging from €100,000 to €1.5 million.
The smart&start incentive includes 3 types of benefits:
- Interest-free financing of 80% of the loan amount ; this percentage can reach 90% if the business is owned by a woman or a young person up to 35 years of age. The loan can last up to 10 years. Companies accessing financing in one of the following regions: Campania, Basilicata, Puglia, Molise, Abruzzo, Sicily, and Sardinia can repay only 70% of the amount granted with the interest-free loan;
- Tutoring Service . Companies that apply for the smart&start call can receive technical tutoring for a total of €15,000 (Southern regions) or €7,500 for other Italian regions.
- The third incentive provided by the call involves the conversion of a portion of the financed sum into a completely non-repayable grant.
For this call, applications must also be submitted through the INVITALIA website . The call is always open, and applications are accepted until funds are exhausted.
Linkography on websites for female entrepreneurship
IF- Female Entrepreneurship
(the portal of the Committees for the Promotion of Female Entrepreneurship)
www.if-imprenditoriafemminile.it
The website contains information on the Committees for the Promotion of Female Entrepreneurship in Italy. The “News” section features publications, exhibitions, events, and awards that may be of interest to aspiring and existing female entrepreneurs. The “Documentation” section contains the European Commission’s guidelines for equal opportunities and female entrepreneurship, providing a European perspective on this topic. Don’t miss the “Women’s Entrepreneur’s Glossary,” a kind of dictionary with the terms an aspiring entrepreneur should know!
Women’s Observatory
www.osservatoriodonna.it
After a quick and easy (and obviously free) registration, you can access a series of useful services for women who want to start their own business. You can start with the “Invent Your Idea” section, which is a comprehensive guide to creating a successful and successful business idea. Then there’s the “First Steps to Starting a Business” section, with the various procedures (including bureaucratic ones) to follow before starting a business. The “Plan Your Business” section helps you develop a proper business plan. The “Right Law for You” section is also interesting: every business idea can find the right law for funding. So, be careful: seek and find! Don’t forget the section dedicated to entrepreneurial training courses, “How and Where to Train” (how to learn the art of being an entrepreneur!)
Women’s business
www.impresadonna.it
This is the website of the National Coordination of Female Entrepreneurship (based in Rome), in collaboration with Confesercenti. The “Communications” section contains various initiatives supporting female entrepreneurship in Italy. You can also consult the archive with news items sorted by year. For example, you can view the announcement under Law No. 215 of 2006.
Equal Opportunities Network
www.retepariopportunita.it
This is the website of the Department for Rights and Equal Opportunities of the Presidency of the Council of Ministers. It contains information on ongoing projects specifically targeting women. It also includes access to relevant national and EU legislation. Keep a close eye on the “Calls and Notices Archive” section.
Books on the topic of female entrepreneurship
“Female Entrepreneurship. The New Incentives” by Cusimano Antonio- Scerra Maurizio- Buffetti Publisher, 2006. Price 19.00 euros.
“Female Entrepreneurship in Italy. The Case Study of Piedmont” – curator: A. Castagnoli – Franco Angeli Editions, €23.00.
