Culture plays a significant role in international as well as local businesses. It has been defined in several ways. Culture could be defined as a collective encoding of the mind that differentiates an individual, a member of a group, a nation or a state from the others. Individualism and collectivism have defined the economic as well as cultural structures of the societies in which we live. Individualism-collectivism describes the connection between the individual and the group to which he belongs. In this dimension stress is laid on personal goals over group goals.
A culture which is individualistic renders the society to perceive personal achievements. On the other hand, collectivism renders the society perceive there thinking in terms of group achievements. It has been noticed that societies which used to practice collectivism as a culture are getting transformed to practice individualism. Part of this change has been attributed to modernization.
Italian culture is greatly described as an individualistic, meaning that it holds much emphasis on close family ties and individual responsibility. This means that Italians tend to care of their immediate family first and themselves. With respect to business context, individualism affects Italians preferences to do business with individuals there are already familiar with. Collectivism as a culture is not preferred in Italian business hence investors should consider not to take this concern. For individual or groups intending to invest in Italy one should consider individual preferences and needs before starting businesses.