New businesses – it’s not just about credit

What if the problem with youth entrepreneurship in Italia were not so much a lack of incentives as an excess of disincentives and red tape? According to research carried out by the ING People Insight Lab on a sample of VAT-registered individuals, more than half of Italians, when considering setting up their own business, regard bureaucracy as one of the main obstacles.

It is therefore no surprise that, even amongst those who have taken the psychological leap and actually become entrepreneurs, there is a widespread need for support in dealing with the numerous administrative tasks. Consequently, there is also a growing number of banking offers that combine current accounts with support services for the day-to-day activities of freelancers, small business owners, start-up founders and professionals. This is achieved not only through bespoke financial terms, but also through the provision of digital services designed to simplify specific aspects such as invoicing, administrative organisation or regulatory compliance. There are numerous options available, which may even include ancillary services, such as discounts on co-working spaces or on the organisation of business travel.

A service that is tailored to start-ups but also supports their growth journey, because new entrepreneurs often begin with a single requirement, such as accepting payments or managing expenses, and over time these needs expand to include international payments, team expenses, cash management and working capital management.

The players making the most decisive moves in this area are digital banks and fintech companies , which target young people as their main customer base, or banks that started out online and have only recently begun planning to open a number of branches across the country.

The pioneer of this type of account in Italia is Hype Business, launched by Banca Sella back in 2022 to cater for sole traders, freelancers and VAT-registered individuals. Among other features, the solution includes the ‘Tax Manager’ function, which allows VAT-registered individuals on the flat-rate scheme to estimate taxes and social security contributions in advance and to set aside the necessary funds in a dedicated, unrestricted savings pot to manage tax deadlines. Then there is the ‘Radar’ service, which consolidates various accounts (both personal and business) into a single dashboard accessible via the app, providing visibility and control over finances. But smart budgeting tools for money management and advanced expense tracking tools are also part of the offering from the digital bank N26, which is divided into Business Metal, Go, Smart and Standard.