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Sotemapack, the courage to do business in the jungle of bureaucracy

The story of Sotemapack, a packaging company that has just inaugurated a new factory in the province of Bologna, is emblematic of the bureaucratic torments that stifle businesses. “When everything was ready, the fire brigade arrived: the water pressure from the fire vents was insufficient and we had to build a huge cistern”

Sotemapack, the courage to do business in the jungle of bureaucracy

Small Italian businesses grow even in times of crisis, but their life is an obstacle course. This is the denunciation of Giancarlo De Martis (ex CEO of Gd), shareholder of Sotemapack, a packaging company which recently inaugurated a new factory in Anzola dell'Emilia, in the province of Bologna, a platform which should allow it to take off and to seize various opportunities. Sotemapack today makes machines for shrink wrapping, what is needed, for example, for mineral water bottles. In this context, it generates around ten million in turnover, about 70% abroad, thanks to the work of 50 employees. But there are ideas and prospects in the field that should allow it to grow and start hiring again. Between saying and doing, however, there were almost two years of delay, during which the shareholders thought, more than once, of pulling the oars in the boat. “At one point – says De Martis – we were so tired and frustrated that we wondered if we were making an entrepreneurial blunder. The financial context is what it is and we were embarking on a new adventure, while everything seemed to suggest that we should stay put. But you don't do business if you don't move forward". But what were these problems?

"An endless series of permits - says the entrepreneur - ranging from construction licenses, with a very complex process, to multiple variations during construction, from the authorization of the provincial command of the fire brigade, to the free way of the commission for the architectural quality and the landscape, from the evaluations of the Local Health Authority, to those of the Arpa, from the environment service manager, to the area director, from the connections of Enel, Hera, Telecom, to the energy certification. A mass of rules and regulations which, only late on schedule, made us spend 10% more. This is why, in Italy, even small entrepreneurs at a certain point want to escape elsewhere". To get out of the tunnel it would be enough to take examples from other countries: “I've had the opportunity to build factories, in Germany, in England, in the United States, in Brazil – says the entrepreneur – and I have seen the simplicity of their building regulations. There were urban planning and environmental sustainability constraints, but the works were based on self-certifications, on trust in the entrepreneur who was sanctioned only in the event of non-compliance. I found efficient land managers and lots of building land, with industrial destination, prepared with utilities, services, primary and secondary urbanizations in a very short time. We still have the urbanizations finished after two years….”.

In this adventure there is no shortage of examples to think about: “When everything seemed ready, the firefighters, after inspecting the construction site, found that the water from the fire vents had insufficient pressure. So, instead of opening a shop, we had to build a huge underground cistern, a concrete container with various pumps and controls, to bring the water to the pressure required by the standards. The cost of structures, building practices, permits and everything else has practically reached one hundred thousand euros. In short, when the system opens the taps it does not give you the pressure required by other safety standards. It's amazing isn't it?"

Sotemapack's story is similar to that of many other companies, some of which lack the strength to finish the race. It is one example, among many, that can be done. What is missing is a way out at hand. For the Bolognese entrepreneur, it would be necessary to start by changing at least the cultural approach. “Today we are experiencing a financial crisis, but it is the economy that needs to restart and we must all believe in it more. Life doesn't begin after work, it is also and fully what we do, our activity. From politicians, to administrators, to entrepreneurs, we should all take this into account, it would be a first step towards looking ahead".

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