UMBRIA EXPORT Change in legal framework: from consortium to non-profit limited liability consortium
ITALY
Introduction Umbria Export was originally founded in 1974 as a non-profit export consortium. It was promoted by Confindustria Perugia (the then provincial branch of the leading Italian association of entrepreneurs) in order to assist local companies export to and promote business on foreign markets. The export consortium was created under the provisions of Italian law which, as in most other countries where consortiums are legally recognized, only allowed the consortium to offer its services to its own members. This often constitutes the consortiums strength. It can, however, in time also become a restraint to growth and development of the consortium’s scope of activity. Nonetheless, the consortium operated with great success. In collaboration with the regional government of Umbria and with the Italian Trade Commission, missions abroad were organized across the world and prospective businessmen and women were regularly invited to visit Umbria. Promotion regarded all traditional industries of Umbria: from mechanics to food and wine, from interior decorating to tourism, from furniture to general contracting and building. In order to perform these services, Umbria Export relied on small membership quotas (the equivalent of approx. euro 1.000 per annum) from the 150 circa companies within the consortium and, moreover, public funding. Under a series of Italian legal provisions, public funding was granted to non-profit export consortiums under specific terms. Umbria Export not only benefitted from this line of public funding, it constituted its main budgetary reference. The workings of this framework was further established and consolidated un the provisions of Italian Law n. 83/1989 that allowed non-profit export consortiums to request public funding which covered expenses sustained for promotional activities. Needless to say, Italy suddenly witnessed the birth of a great number of export consortiums.
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