Self-financing in growth strategies of italian smes. A case study

In international markets, territoriality increasingly represents a decisive success factor for companies, particularly Italian ones, which, thanks to their intellectual capital, manage to be competitive in the era of globalisation in which we find ourselves, despite strong competition at world level. In fact, with particular reference to industrial companies, Italy has managed to make the concept of 'Made in Italy' perceived as a guarantee of quality and luxury throughout the world, creating a brand under which all Italian companies are recognised. The reputation of the Italian manufacturing company is, in fact, known worldwide and is a hallmark of creativity and quality. This paper aims to investigate the propensity of Italian SMEs to self-finance and invest in research, development, and innovation. The research is conducted by analysing the findings of a company case study. The results for the three-year period 2019-2021 of a medium-sized Italian company belonging to the manufacturing sector were analysed to examine how a medium-sized family business can implement a growth project through the predominant use of internal financial resources. The results show how, through self-financing, the company was able to increase its value and market share, especially abroad. This was done by investing heavily in innovation and research, despite the economic crisis resulting from the Covid-19 pandemic.