Access to Equity for New, Innovative Companies in Italy

This paper sets out to investigates the subject of finance for the growth of small and medium enterprises (SMEs) in one of the Italian Provinces: the Province of Modena. Th main aim is to analyse the means by which start-ups are financed, especially in the form of equity, and attempt to identify any financial constraints, in particular in the form of an equity gap, which restrict the growth and development for this kind of firms.In order to analyse the means by which innovative start-ups are financed and attempt to obtain empirical proof of the presence or otherwise of an equity gap at the local level, a qualitative approach has been adopted. In particular, a questionnaire was drawn up and sent to a suitably selected sample of new innovative firms.In conclusion, the main finding that emerged from this study is the fact that investors need to combine their financial contribution with the supply of managerial inputs. The analysis of the sources of finance used by firms appears to point to a preference for managing investment processes internally or with bank partners. The entry of new partners into the company’s ownership structure is more likely as a means of solving problems relating to a lack of expertise than as a strategy for obtaining new financial resources.