Innovation and investment: what course are Italian SMEs charting?

A look at 2025 shows an interesting picture of the Italian SME market, where the watchword remains resilience, against a not always easy economic backdrop. We explore the topic and the possible solutions to support businesses with Annalisa Capitanio, Strategic & Marketing Research at Banca Ifis.

What were the main trends shaping the Italian SME market over the past year?

In a context heavily affected by uncertainty stemming from geopolitical tensions and US trade policy, the turnover of Italian SMEs has proved resilient. It has certainly been weighed down by high production costs and still-uncertain demand, but it has also benefited from product competitiveness and the skills of their people. Within this overall picture, however, sector differences are significant: Technology and Machinery are the main growth engines in 2025, while Fashion and Automotive show clear signs of weakness.

Further evidence of the resilience and competitiveness of Made in Italy can be seen in export trends in 2025, which have rebounded strongly after the downturn in 2024: in the first nine months of 2025, exports grew by 3.5%, driven by the pharmaceutical and agri-food sectors. International markets are a strategic channel for Italy’s production system: 44% of SMEs export part of their output, and for these companies overseas sales account for just over 40% of turnover.

Lastly, another sign of the dynamism of Italy’s production system is the intense level of M&A activity on the domestic market: 6% of SMEs are planning to acquire new businesses over the next three years, with uptake increasing as company size grows.

What are SMEs’ investment prospects, and what role does sustainability play in their growth strategies?

Despite the uncertainty in the wider environment, Italian companies’ approach to investment remains positive, with investment increasing for almost one in four Italian entrepreneurs both in 2025 and, looking ahead, in 2026. In this area, Machinery and Chemicals–Pharmaceuticals are leading the adoption of advanced solutions, with figures well above the national average.

Investment analysis also highlights the increasingly decisive role of sustainability: 62% of SMEs said they have invested or intend to invest within the next year in measures in this area, up from 60% in 2024 and 55% in 2023, with a focus on renewable energy and reducing waste. Awareness is also strengthening across supply chains: the share of businesses excluding suppliers without sustainable policies has risen from 16% to 26% in two years.

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What tools and solutions can support SMEs in this context?

Banca Ifis offers targeted solutions to meet SMEs’ different needs. On the export front—key for many businesses—Banca Ifis provides a range of options, both to support liquidity through factoring and import/export financing, and through documentary credits, international guarantees and documentary collections, to protect companies in international markets. Investments in specific projects, or those supporting innovation and sustainability, are backed by financing supported by the Guarantee Fund and SACE Growth. In addition, specific solutions are available for sustainability-related initiatives, such as leasing for EV charging points and removable photovoltaic systems, as well as mobility-focused offers such as leasing electric or hybrid cars and hiring fleets of e-bikes.

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