Do you want to develop your business with the help of external financing? Does opening a business involve high costs for you? Or are you planning further new investments? If so, you are in the right place. Whether you already have your own company and are running a business or are just thinking about opening one, grants and other types of financing, can significantly accelerate development. Check out my article to learn what grants are available today, but also what to expect in the coming years. You may also be interested in alternative ways to finance your business. Have a great read!
You can look for information about subsidies in many scattered sources. These include among others. websites such as: fundseuropejskie.gov.pl ; parp.gov.pl or gov.pl/web/ncbr ; These are just examples of sources of information, as information about grants appears in a wide variety of places and, unfortunately, as often as it appears - it disappears. The problem for many entrepreneurs, busy running their businesses, is the lack of knowledge about ongoing and planned calls for proposals. Simply checking the news on the European funds portal is unlikely to have the desired effect.
Subsidies are also not only programs implemented by the Polish Agency for Enterprise Development. Do you know about competitions implemented by private companies, grants awarded by entities such as the Visegrad Group, for example, or support programs for entrepreneurs implemented by the National Fund for Environmental Protection and Water Management or the Social Insurance Institution? There are also a great many other national or local sources (Local Action Groups, municipal, county and provincial programs). It's impossible to check dozens of sources every day, especially when you don't know how or where to look.
There are many potential sources of financial support for companies, and it is not true that "there are no subsidies" for today. The problem is that few people have the knowledge, but most of all the time to look for information on grants on an ongoing basis. At the same time, these programs change so often that checking the sources on your own once every few months does not guarantee "catching" a matching program.
Recruitment for a given program usually lasts only a few weeks. At the same time, the grant application itself, if it is to be developed in a professional manner usually requires a minimum of one to two weeks of work by a specialist or a whole team of experts. Therefore, if you do not find out about a given call well in advance, the chance that you will submit a properly completed grant application on time is slim. This is especially important in the case of grants, which are relatively easy to obtain by which competition is very high. The granting institution often stipulates that if there are an unusually large number of applications it will close the call earlier, i.e. before the initially announced deadline. Therefore, information on a given program should be followed not only before the announcement and before the opening of the call, but also during the call. And it is best to have a grant application drawn up and ready for submission at the very beginning of the call. You will then avoid unpleasant surprises.
It is for this reason that we have created grant guide, in which we monitor all business support programs available in Poland at any given time and inform enrolled entrepreneurs about these programs. All you have to do is sign up and you won't miss any more new business support programs. As of today, this is the only such solution in Poland, which is already used by nearly 100 entrepreneurs, regardless of the subject of activity, stage of development or location of the business.
To begin with, let's dispel a myth again. It is not true that "there are currently no subsidies in Poland." Anyone who says so has not bothered to verify the subject in detail. It is true that for today there are relatively few programs, the reasons for which I write later in the article. However, there will be more subsidies in the coming months, and there are some opportunities today as well. Below is a sample listing. This is not a full list, but only a sample (full lists are given to recipients of our guide from the website https://dostepnedotacje.pl).
In addition, there are also funds available all the time for the so-called "new" money. consulting services (see "Development Services Database") or various types of vocational courses. These are usually not so much grants as full or partial reimbursement of costs that the employer incurs for employee training.
Grant programs from the 2014-2020 perspective are nearing completion or have been closed. New support programs will be distributed from the 2021-2027 budget pool. As per preliminary announcements and available information, special attention will be given to the following areas:
Your industry is not on the above list? Nothing lost. This is just an example of the general enumeration. Nearly half of the funds will go to local governments, which have or will develop their own programs. You can always apply for a grant from the labor office or for support for non-agricultural activities offered by ARMA. In addition, there will be programs implemented, for example, through Local Action Groups or entities not directly connected with European funds. There is, therefore, a chance that obtaining a grant will be possible.
Even if at first glance your business doesn't fit the above list, it's worth keeping track of grants, as you may find that programs such as "Internationalization of SMEs," for example, are being implemented in practice once again. - funds for foreign expansion, Industry 4.0 - support for the development of manufacturing companies (e.g. funds for the reconstruction of a production line), "Go to brand" - financing participation in foreign fairs or other programs subsidizing the establishment of a new company or the development of an existing one.
So far, there have often been programs that did not exclude any particular industry, so virtually all entrepreneurs meeting certain other criteria had a chance. Details of the programs will be published when the new financial perspective is launched.
As of today, the limited availability of subsidies is directly related to the conflict over the rule of law between the Polish government and the European Commission. Due to the failure to meet Brussels' expectations, the funds have been blocked (withheld).
In practice, this translates into the suspension of new subsidy programs. As a result, subsidies as of August 2022 are significantly less than they should be according to assumptions. It remains to be hoped that this situation will change in the coming months and funds will be released. According to unofficial information, this could take place at the end of 2022. Unfortunately, as of today, there is no guarantee or certainty on this subject. Polish companies are therefore currently at a disadvantage compared to foreign entities in our region. This largely applies to small and medium-sized entrepreneurs. Until the release of funds and the launch of the new perspective, one can follow grants and other support programs operating without the backing of European funds. Examples of such programs are indicated above.
Grants are not the only way to get financial support for your business. Their downside, for example, is that you can only use EU funds for predetermined purposes - you usually have no freedom of spending here. The most popular alternative to grants is a bank loan. Of course, it is not as attractive as a grant, since you have to pay it back. But for one thing, there are so-called preferential loans available, which have low, near-zero interest rates. Which, with inflation at an all-time high, seems a favorable solution. And secondly, obtaining a preferential loan is usually simpler than obtaining a grant. When you add to this the need to settle the subsidy, the case that the loan is not such a bad choice at all. It is worth checking the institutions operating regionally that are authorized to grant such preferential loans. You can also find examples of such entities and financing in our guide.
The unemployed, on the other hand, can seek support from the labor office. The subsidy from the District Labor Office, despite the fact that its amount is within the range of about 30 thousand zlotys (it is variable), has been very popular for many years. Especially among entrepreneurs who have no chance of funding from other sources.
In addition to loans and grants, it is also possible to obtain financial support from private investors. These are primarily so-called business angels as well as investment funds (VC funds). These investors usually risk their money, which means that if the business fails, these funds do not have to be returned. However, as a result, obtaining such financing is difficult and, for most companies, impossible.
Preference is given to businesses that are already operating and have first revenues (market proven demand). Ideally, they are additionally characterized by an innovative business model (development of modern economy), not easily copied by competitors. Professional investors, will also expect professional preparation for the interview. This includes business plan or what is more common - an investor presentation along with a professional financial model in excel. What grants, loans as well as financing from investors have in common is the need to develop an appropriate application or business plan or investor presentation. This is usually the main basis for obtaining financing in a project.
If you feel that your business may be of interest to potential investors, get back to us. We have a network of familiar angel investors and institutional investors to whom (if your business seems attractive to us) we will be happy to introduce you.
There are subsidies available for companies in 2022. This is a fact. There are fewer than expected, while some opportunities exist all the time. They are supplemented by loans and funds from private investors.
For our part, we always recommend that clients run their business on their own resources for as long as possible. Obtaining external financing, regardless of its source, always involves some complications. Therefore, first of all, try to use the so-called bootstrapping (and therefore own financing). Only in the second place external financing, which should ideally accelerate the development of the company. Grants are not only benefits, but also obligations. In extreme cases, when you fail to meet the objectives of the projects you have committed to, there is a possibility that you will have to return the funds you have received with interest, or you will not receive all or part of the funds, despite the commitment of your own contribution.
To stay up to date on business support programs, it's best to sign up for the newsletter we run. Since you are interested in this topic it is worth keep in touch, especially when there is a new budget perspective (EU funds) and interest in subsidies increases significantly. Then you will get a chance to develop your business on preferential terms compared to competitors who will not take advantage of this opportunity.
It is worth thinking today about solutions in the field of innovation (e.g. research and development, computerization, use of energy-saving technologies) or broadly understood environmental protection, which could be implemented in the company in the coming months or years. Business ventures implemented in eastern Poland will be promoted. It certainly won't hurt to develop a professional business plan in advance either. Remember that a detailed business plan can be drawn up for you by our company. This will increase the chances of obtaining financing. In addition, moving your company or at least setting up a branch in Eastern Poland can also increase your future chances.
Of course, as of today, these are only speculations, since the details of the new programs (it mainly concerns EU funds) are not yet publicly known. This topic should be monitored on an ongoing basis. Also, don't forget to get an idea of the alternatives. These are, for example, loans (preferential ones = symbolic loan interest rates) or venture capital funds that invest in companies. EU funds are just one of many possibilities. And if you have questions or concerns, you can always describe your case in an email. We will do our best to tailor an opportunity most suited to your individual needs.
