From Generation to Generation: Why Family Businesses Keep Italy Thriving

Italy’s cities and towns are full of stories passed down through generations. Behind many of these stories are family-owned businesses, the lifeblood of the Italian economy and culture. From independent pet shops to anchovy producers to neighborhood tabacchi, family enterprises are everywhere, quietly shaping the communities they serve. 

With 85% of all Italian businesses under family ownership, these companies play a critical role in both local and national prosperity. Unlike many large corporations focused on short-term monetary returns, family businesses operate with an eye to the future, thinking more in terms of generational success. This mindset fosters stability, deep-rooted loyalty, and a company culture that prioritizes people as much as profit.  

During a recent visit to Italy, I had the opportunity to meet some of the people behind these enterprises, each with a story that reflects the strength and spirit of family business. In the city of Arco Felice, independent pet shop Puppy’s Market, owned by Luigi, embodies the deeply personal relationships that define so many small Italian businesses. As a local independent pet shop owner, Luigi often sees his customers every other week or more, guiding and advising them on pet purchases that align with their values. Luigi’s kindness and connection to the local community speak to the trust and loyalty that sustain family-run enterprises over decades. 

In Cetara, I visited Nettuno, a world-renowned, family-owned producer of anchovies and traditional anchovy sauce. Owner Giulio walked me through the meticulous, step-by-step process of sauce production—a recipe his family has perfected over generations. The process to make the Nettuno anchovy sauces takes multiple years and the price reflects this value at $8.71/ounce. While visiting with Giulio, one of the most significant moments came as he proudly stood beside an old wooden barrel once used by his grandfather more than a century ago. It was a great reminder that for many Italian businesses, products are commercial goods, but also  heirlooms of tradition, craftsmanship, and pride. 

Back in Arco Felice, the Scamardella Tabacchi, the local tobacco shop, has served the community for over 100 years, still owned and operated by the Scamardella family. Staying with the sister of the current owner gave me a deep appreciation for how these businesses are woven into the fabric of daily life; acting as gathering places, community anchors, and living links to the past. 

These stories reflect what data also shows: family-owned businesses are not just cultural cornerstones, but economic powerhouses. Beyond their cultural importance, family-owned businesses contribute substantially to national GDP and employment. Small, family-run businesses are often responsible for creating more jobs than larger corporations, demonstrating a positive impact on their communities. In addition, loyal employees, a strong sense of purpose, and a commitment to community all contribute to better retention and sustainable growth. 

Products coming from family-owned businesses are often a point of pride and embody tradition and craftsmanship honed over decades. While many companies prioritize mass production, family businesses often balance old-world techniques and strategic innovation, ensuring their offerings are both authentic and competitive. This combination strengthens their position in the market while preserving cultural identity. They embody resilience, innovation, and a commitment to community that is uniquely Italian, preserving cultural heritage while driving economic growth. 

The future of business leadership may very well lie in the principles honed by family enterprises: long-term vision, community trust, and sustainable growth that benefits both people and society. At BSM Partners, we share these values. As a family-operated firm, BSM Partners understands the balance between tradition and innovation, the importance of putting people at the center of every decision, and building for the long term. For European companies that see strength in family enterprises, BSM Partners offers a consulting partnership grounded in resilience, loyalty, and sustainable growth—helping you honor your heritage while positioning your business for the future. 

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About the Author

Ada-Miette Thomas is a senior analyst at BSM Partners. She received both bachelor’s and master’s degrees in food science with an emphasis on nutrition. Ada-Miette conducted research with a focus on human nutrition and studied the effects of carbohydrate sources on markers of Metabolic Syndrome in adults.