Subsidies for companies are a form of financial support that allows entrepreneurs to make investments and develop their business. The purpose of this article is to present the different types of grants available to companies in Poland, the process of applying for a grant and examples of grants dedicated to specific industries.
The use of subsidies allows entrepreneurs to develop their business by making investments that would be difficult to finance without financial support. Subsidies allow businesses to modernize and modernize, which contributes to improving their competitiveness in the market. In addition, subsidies for companies can help develop new products or services, which positively affects the development of the company.
The article will also outline the different types of subsidies available to companies in Poland, such as EU subsidies (international programs), national (nationwide) and regional (usually provincial), which will allow entrepreneurs to choose the right source of funding for their needs. It is worth noting that grants are not the only source of investment financing, so the article will help in choosing the right form of financing. Tailored to the individual needs of the company.
Subsidies to companies are a form of non-refundable financial support, provided by the state, local governments or EU institutions, to entrepreneurs for the implementation of specific projects or activities.
Grants can be used for various purposes, such as investment in new or upgraded machinery and equipment, development of new products or services, research and development, or energy efficiency or environmental protection measures. Subsidies can be provided on the basis of diverse programs and competitions, which are organized by different institutions and subject to different conditions.
Funds from the European Union are dedicated primarily to micro, small and medium-sized companies. This status is judged by the number of employees and annual turnover. A company to fit this definition should not have more than 250 employees and an annual turnover of up to 50 million euros.
Importantly, EU grants for companies are not the only way to obtain financing. Other entities can also be a source of funding for the company. It is worth checking, for example, the offer of the Norwegian Funds, but also organizations as unobvious as the Visegrad Group. Support is also provided by District Labor Offices (establishment of a company).
Grants are not the only solution available. Your company can also apply for funding from private investors (business angels, venture capital funds) as well as a bank loan.
You can search for funding announcements yourself on the Internet. Examples of sites on this subject are parp.gov.pl or funduszeeuropejskie.gov.pl ; However, importantly, in order to stay up to date with the programs provided by the above-mentioned entities, you should check these sites regularly (preferably daily). Don't count on them to send you a notification saying "entrepreneur, a call for proposals tailored to your needs is just coming up!".
In addition, these are not the only sources of EU grants in Poland or more generally of financing for companies. It is worth knowing that it is also possible to obtain funding from such sources as the ARMA or the National Fund for Environmental Protection and Water Management. For example, if you plan to thermo-modernize your company's buildings, it is worth calling the National Fund for Environment and Water Management.
As mentioned above, EU funding is not the only option. Starting a business or growing a company can also be financed from sources such as the Norwegian Funds and even the Visegrad Group. Or maybe you've heard of entities such as local action groups? That's where you can also look for startup funding. These are just examples, not a complete list.
There is one place that aggregates both EU funds and other types of grants for companies. It's a guide that we create as part of the service DostepneDotacje.pl ; You will find there both information on funding calls for business development and startups.
As mentioned above, European funds are most often available to micro, small and medium-sized enterprises.
Programs from EU funds usually concern support for new companies or those in the development stage. Therefore, it is important to demonstrate your own contribution or financial security (e.g. past financial performance, owned assets).
Details of the programs from the new perspective are not yet known. However, it can be assumed that the new grants for small businesses will cover topics such as:
In addition, it is worth noting any solutions related to R&D (company research and development) or environmental protection.
It should be remembered that grants from the EU are not the only option. Moreover, funding is available not only from PARP, but also, for example, from NCBiR. Often also, for example, at the IDA (Industrial Development Agency).
Large private companies are also implementing their programs. For example, in recent years competitions with financial prizes for mature companies or startups have been organized by Orlen, ING Bank and Huawei, among others.
An entrepreneur who is interested in EU funding should know the sequence of actions in obtaining it.
The first step is to obtain information about the planned recruitment matching the company's needs. To achieve this, you need to monitor (on a constant basis!) all programs implemented in Poland. Our company does just that, for entrepreneurs enrolled in the guide (website: DostepneDotacje.pl). You can also do it on your own, but answer the question of whether you will do it several times a week and whether you can locate all sources of potential grants. This is a lot of hours of work, which you can outsource to us for 50zl per month.
The search for the right financing can take many months and usually takes that long. It is important to know this and be patient. Finding it early (as soon as it is announced) gives you a high chance of success.
Once you have found a program, you should read the grant regulations in detail. This will allow you to confirm that its assumptions match the assumptions of our company. In other words, we will check whether you have a real chance of receiving financing and whether such financing makes sense for you. Remember that you cannot allocate EU funds for any purpose, but only for those specified in the regulations (the so-called eligible costs).
Then comes the time to draft a proposal. The best chances are for those entrepreneurs who enlist the support of experienced advisors. Applications are usually relatively complicated. You can use the support of many companies that operate in the market (including ours).
Once your application has been favorably evaluated, you sign a support agreement and start implementing the project. Importantly, you must stick to the assumptions (deadlines, expenditures, etc.) consistent with the drafted application. During and after the project implementation, you create an implementation report (e.g., confirmations of expenditures, photographic documentation of the completion of various stages, etc.).
Money for business development is at varying levels depending on where you do your business. This is not the case for all funding. However, this is how the system works when we specifically have the European Union in mind.
From this point of view, it is best to run your own business in the Eastern Polish provinces, such as Warmińsko-Mazurskie, Podlaskie, Lubelskie, Świętokrzyskie or Podkarpackie. There, the level of funding is the highest and can amount to 70%. In contrast, companies from Warsaw and neighboring counties are in the worst situation. Entrepreneurs from cities such as Wroclaw and Poznan can also count on limited funds.
If your company operates in Warsaw, for example, it is worth considering opening a branch office in eastern Poland. This will increase your chances of getting a favorable grant in future calls for proposals.
EU funds for company development can usually be earmarked for specific purposes. Examples of earmarked funds include the implementation of energy-saving technologies or grants for the purchase of new equipment. Often there is also funding for the reconstruction of a production line or internationalization activities or the use of renewable energy sources.
If you are planning to obtain subsidies in the coming years, pay special attention to buzzwords such as environmental protection, improved products, smart growth (startup platforms), innovative idea or purchase of fixed assets when planning the development of your company. Also remember that the most favorable financing conditions can be obtained if the project "involves" eastern Poland.
The exact purpose of European funds varies and depends on the provisions of the program regulations. Therefore, it is important to carefully read the documentation. Only then can you assess whether the company can apply for funding and whether it makes sense to obtain just such an EU grant.
Repayable instruments (in the form of loans) function differently, where the freedom to spend funds is usually greater.
The main advantage of using European funds is, of course, access to non-refundable capital. It can significantly support the development of an ongoing or planned business activity. Indirectly, EU funding also affects innovation or other benefits that are also important for the entrepreneur's environment.
Risks associated with obtaining EU funds can be divided into those related to the phase of applying for EU funding and those related to the phase after obtaining it.
When applying for European funds, it can be a problem to meet all the formal requirements and to draw up a complicated application. This usually requires hiring external specialists which means cost.
On the other hand, the risks after receiving a business development grant are primarily related to the need to strictly adhere to the guidelines contained in the application. If they are violated, it is possible to withdraw some or all of the support.
If you run a business, you certainly can't complain about an excess of free time. At the same time, you are aware that additional funds for can accelerate the development of your business.
Therefore, you should consider using the support of specialists. They will help you find the right program, draw up the application and fulfill other formalities, and finally guide you through the entire process once you have obtained financing.
If you want to take the first step, and as of today you still don't know if your company can count on financial support, start with the site DostepneDotacje.pl ; Subscribe to our newsletter to stay up to date on current support programs.
After matching the appropriate grant, we will talk about the details of developing the application. Its cost depends on the amount of the grant and the level of complexity of the documentation (the amount of work on our side). We usually charge a small initial fee + success fee.
If you are planning to start a business or already have a business, you can apply for support.
To increase your chances, think about the innovations you can implement in your company with support from the European Union.
Also, check out past support programs and those currently available to get a general idea of what EU funds and other grants are for.
Keep in mind elements such as the greatest support for micro, small and medium-sized enterprises, the benefits of doing business within Eastern Poland, or welcome activities related to, for example, environmental protection or the implementation of modern technologies (preferably based on research and development).
What are the formal requirements for obtaining a grant for a company?
Support programs for entrepreneurs vary. Consequently, the formal requirements also vary. Detailed criteria in each case can be found in the regulations of the given program (grant). Examples of criteria in the case of already established companies applying for support include good financial performance or a specific location.
What costs can be covered through business grants?
It all depends on the purpose of the particular program. Examples of eligible costs are, for example, salaries, marketing costs, costs for the purchase of fixed assets, costs for trips to trade fairs.
How is the settlement of an EU grant for a company?
It depends on the institution granting the funding. Most often, it is required to present relevant documents confirming the implementation of the project in accordance with the submitted application and the concluded agreement. These include accounting documents or photographic or audiovisual documentation of the project implementation.
