The Startup Act has introduced a “fail fast” procedure: by exempting startups from the standard regulations on failure, this measure avoids that the entrepreneur is “stuck” for ages because of the liquidation procedure and allow him to start a new business project as soon as possible without suffering reputational and financial cost.
Given that the majority of startups fail – a figure of nine out of ten is often quoted, although the actual data is more optimistic – policymakers sought to make it easier to proceed with and, more importantly, to bounce back from, insolvency. Thus one of the key components of the Italian Startup Act is the introduction of a ‘fail fast’ procedure, which aims to prevent entrepreneurs being encumbered by lengthy liquidation procedures and instead ‘allow them to start a new business as soon as possible without suffering reputational and financial cost’.
Excerpt about the overall Italian Startup Act in Nesta's ‘Idea Bank’ for Local Policymakers:
The Startup Act has won praise from many in the business community who felt it was time the Italian law caught up with the rapid pace of technological and other forms of innovation. But critics have claimed that certain provisions are too restrictive (for example, the definition of what counts as an ‘innovative startup’) and that there are not yet enough incentives for investors to make it worth their time and money.
The Italian Startup Act – whose creation was described by policymakers as a laudable but laborious process – was guided by the Minister of Economic Development. It was the culmination of a national strategy that involved sourcing recommendations from a 12-member expert panel and a broader consultation with over 2000 people from the startup ecosystem. It involved designing a new industrial policy at then ational level which brought together several departments to work cohesively to embed favourable conditions for establishment of innovative enterprises.
See more at https://www.genglobal.org/snap/italian-startup-act.
About the Italian Startup Act
The Italian Startup Act is a wide-ranging act containing a raft of provisions to make it easier to register, operate and wind-up an ‘innovative startup’. Measures include: providing exemptions from stamp duty; a public guarantee (up to 80 per cent) on bank loans; free online company registration; flexible application of Italy’s notoriously rigid labour laws; an Italian Startup visa (with evaluation of CV and business model within 30 days); a number of tax relief incentives for investors; and new rules to allow certified portals to offer equity crowdfunding.
Read more about the Startup Act in Nesta's ‘Idea Bank’ for Local Policymakers, as well as via the SNAP entry by its main leaders: https://www.genglobal.org/snap/italian-startup-act.
