This paper draws on a new survey to assess the level of financial and digital competences of Italian micro-entrepreneurs and to investigate whether these skills help them cope with unexpected shocks, such as the pandemic-related crisis. The survey, which involved about 2,000 non-financial Italian enterprises with less than 10 employees, was part of a larger initiative promoted by Italy’s G20 Presidency in 2021. It was undertaken in cooperation with OECD/INFE.
After controlling for several business characteristics, micro-entrepreneurs' greater financial literacy is significantly correlated with the transition to more digitalized business models and with firms’ greater resilience to external shocks. Overall, however, both the financial literacy and digital skills of Italian micro-entrepreneurs are rather limited, especially for sole proprietorships and owners with a lower level of education.
