The dynamics of trade firms during the COVID-19 pandemic: the case of Via Padova, Milan

ABSTRACT

This paper investigates trade firms’ dynamics in the Via Padova neighbourhood at the end of 2020. The COVID-19 pandemic has stressed local economies and it has resulted in economic downturns, income inequalities and increased unemployment. While the current literature analyses widely its impacts on international trade, little attention has been given to the resilience of trade firms at the urban level. The containment measures to limit the pandemic have caused temporary closings of non-essential goods firms, while forcing other firms offering essential goods to stay open, albeit the many difficulties encountered. Since the Via Padova neighbourhood has one of the highest densities of trade firms in Milan, this makes it an interesting study area to test the effects associated with the containment measures. Exploring the data about trade firms’ survival rates related to the period 2019–20 demonstrates a certain resilience of local firms. The number of firms closing down decreases in 2020, while the variation in the active ones tends to become insignificant compared with the previous year. The negative effects on non-essential goods firms persist during the first wave of the pandemic, whereas during the second wave essential goods firms are especially affected. These dynamics of resilience towards hostile economic and social conditions caused by the pandemic are a useful clue for reconsidering and developing new recovery policies.

KEYWORDS:

• firms’ dynamics
• trade sector
• COVID-19
• creative resilience
• Milan

ACKNOWLEDGEMENTS

This study was conducted as part of the ‘Milano City School’ project promoted by the Municipality of Milan which was financially supported by the Municipality and the IULM University. The authors thank the editor and reviewers for their timely and constructive feedback.

AUTHOR CONTRIBUTIONS

Conceptualization: G.F.; Data curation: V.C., G.F.; Formal analysis: V.C.; Investigation: V.C., G.F.; Methodology: V.C., G.F.; Validation: V.C.; Writing – original draft: V.C.; G. F.; Writing – review & editing: V.C., G.F.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Notes

1 The choice is given by the fact that the study was directly financed by the Municipality of Milan, which wanted to study this neighbourhood specifically.

2 The survey system of the Chamber of Commerce provides for the quarterly survey of terminated firms, while it does not provide for an equal survey of inactive and active firms according to the same calendar. It offers a snapshot of their dynamics at the time of the survey. Therefore, the Chamber of Commerce provided data on the latter firms at the time of the request. Since it does not have a planned survey, it is unable to provide a complete historical data series.

3 For the essential and non-essential commercial businesses according to the mentioned Italian government decree, see Appendix A in the supplemental data online.

4 NoLo’s boundaries are marked by the east side of Milan’s Central Station, a section of Viale Monza and the Martesana canal. Its name is an acronym for North of Loreto, a formula also used in New York for the SoHo district, or ‘South of Houston Street’. In recent years, this area has undergone a population boom and numerous urban regeneration and social innovation projects. It is a neighbourhood with a thriving culture and identity. Cultural interference is strong, but it does not alter the local identity. Urban regeneration speaks a universal language that allows different cultures and people to meet.

5 The remaining 11 firms are not classified (Milan Chamber of Commerce, 2020).