Rome, August 31, 2023 – The total rate started a few days ago: what will be decided in Frankfurt in September 2023 and in the near future? Meanwhile, after 8 consecutive increases since July 2022, which have seen inflation almost halved since October 2022, rates have reached their highest level in decades and the majority of experts expect a further increase in September 2023.
Even if there is the fear that to contain inflation, the economies of the eurozone could face a recession, Lagarde did not rule out “further increases in the near future, if the increase in prices does not return to sustainable levels” .
Even the head of the American central bank (FED) has not ruled out an imminent increase in the interest rate and, as is known, Europe is closely following what is happening overseas.
The increase in interest rates has a significant impact on the economy, because it causes higher financing costs for both businesses and citizens, who see the cost of loans and mortgages increase considerably. A factor that causes a slowdown in turnover and economic growth, with a consequent increase in unemployment.
How to protect yourself from high interest rates
With this scenario on the horizon, how should Italian entrepreneurs behave?
“Italy is the country of SMEs (companies that have fewer than 250 employees, an annual turnover of no more than 50 million euros), many of which have been negatively affected by the Covid19 effect.
For the Italian entrepreneur it is essential to cut all the unproductive costs that do not have a positive return, and above all to be very attentive to cash flows, carefully studying the management numbers and trying in every possible and legitimate way to arrive at a negative monetary cycle, that is, cash in before paying the debts”, says Pasquale Abiuso, president of the cooperative credit bank of Gambatesa and expert in business management strategies.
A forecast by Confcommercio sees 120 thousand companies at risk for 2023 with a potential loss of 370 thousand jobs.
“The urgency on the part of Italian companies to structure themselves can no longer be derogated from” – continues Abiuso – “the idea of having a company centered on the owner can no longer pass even though he created it, but there is a need to reorganize the business context by establishing who does what, in order to be able to face the challenges that will arise in the near future.
Hence the need to implement an effective delegation process to allow human resources, after appropriate coaching, to contribute to the consolidation and triggering of growth strategies”, concludes President Abiuso.
Pasquale AbiusoPasquale Abiuso has been President of the Gambatesa Cooperative Credit Bank since 1996, Vice President of the Federation of Cooperative Credit Banks of Abruzzo-Molise, Senior Guerrilla Marketing Coach, business management strategy consultant. In 2013 he managed the incorporation of the BCC Molisana di Credito Cooperativo into the Gambatesa BCC.
