Businesses and their employees are an important source of wealth creation and tax revenue. This is why the European Union, the UK government and other bodies provide targeted support programmes, including for SMEs. Here is an overview of the most important ones.
Major EU support programmes for SMEs
The EU Single Market Programme 2021-2027
The EU Single Market Programme 2021-2027 is a central programme provided by the European Union with the aim of strengthening economic integration in the EU and making European businesses, especially SMEs, more competitive.
Horizon Europe
Horizon Europe is the main EU programme for research and innovation. It will run until 2027 and offers large-scale funding opportunities for SMEs wishing to participate in international research projects. Support includes grants for research and development work, innovative projects and the roll-out of new products. Horizon Europe aims to strengthen cooperation between European businesses and research institutions and improve the EU’s competitive position.
COSME
The EU’s COSME programme supports the competitiveness of SMEs through various measures, including improving access to finance, promotion of internationalization and support for entrepreneurial initiatives. COSME also offers advice and support for businesses wishing to attend international trade fairs or expand into new markets.
Main support programmes for businesses in the UK
Start Up Loans
Start Up Loans of up to £25,000 from the British Business Bank can help UK small businesses get off the ground or expand and have already helped thousands of businesses in the UK. The British Business Bank’s Finance Hub has additional finance options for small businesses.
Innovate UK
Innovate UK is the UK’s innovation agency, which helps businesses translate their ideas into reality through funding and collaboration. Innovate UK Business Connect provides an extensive support network for innovative UK businesses and businesses wishing to start up in the UK.
Venture Capital Schemes
Venture capital schemes are designed to help SMEs grow by offering investors tax relief to encourage investment in businesses.
Support schemes at local level
Local Growth Hubs
Local Growth Hubs help English businesses access the advice and support they need. They have been especially beneficial for those facing challenges caused by the cost-of-living crisis and have helped two million businesses in the past year alone.
Scottish Enterprise
Scottish Enterprise offers support for new and existing businesses in the form of funding and grants, as well as help and advice.
Business Wales
Business Wales provides support and advice for starting, running and growing a business in Wales. Topics include navigating funding, business taxes, technology and sustainability.
More support for SMEs
These are just a few examples. There are many opportunities for SMEs to receive support from the EU, the UK government and at a local level.
Tips for applying for SME support
Applying for funding can be complex and time-consuming. Conditions vary according to the programme, but some general criteria often apply:
- Size: businesses are normally not allowed to exceed a certain size (e.g. number of employees, annual turnover).
- Financial health: businesses must often prove their creditworthiness and financial stability.
- Project-specific conditions: some programmes require projects to achieve certain levels of innovation or pursue specific goals.
Applications can require extensive documentation, and these documents are essential for success. Typical examples of documents required include:
- Business plan: this should contain detailed information about the concept, an analysis of the competitive situation, the market and financial projections.
- Annual accounts and economic assessments: to illustrate the financial position of the business.
- Grant scheme description: this sets out how the funding will be used and what the project will bring to the business and, if applicable, society.
Depending on the programme, other documents may also be necessary, e.g. evidence of previous funding or detailed investment plans.
Here are a few tips:
- Thorough research: business should find out everything about the various SME support schemes and their requirements.
- Careful preparation: a complete and well-structured application is more likely to be approved. Following requirements and meeting deadlines is essential!
- Advisory services: many institutions offer free advice to help you find funding and get the application right.
- Long-term thinking: support schemes often have long processing times, plan projects and applications well in advance.
Source from Europages
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