Low growth drags down euro-zone prospects

The traditional network of small family companies that put this city on the map after World War I as the self-proclaimed chair capital of the world has become a burden, presenting the kind of challenge that lies at the heart of Italy’s — and southern Europe’s — economic struggles.

After a century in the furniture-making business, for example, the Constantini family has its connections wired, with a network of neighbors it relies on to bend wood for chair frames, craft metal parts and upholster the final product. At its peak, Manzano’s guild-like system involved perhaps 1,200 family firms.