March 15, 2012
A greater chance of survival for Newly-Created
Realities faced by small business start-ups usually indicate that money is scarce and costs are high. Coupled with such realities is the significant competition existing in most areas of business wherein new start-up enterprises encounter higher costs per unit to develop an initial offering and to adequately position themselves in the market. One of the most critical phases encountered by all start-ups is the interval between the initial investment and the financial inflows generated through sales.
The ERDF Small Start-Up Scheme attempts to support the formation of new enterprises by part-financing their initial operational costs with a view to give them a greater probability of survival.
Aid intensity for start-ups supported under this scheme is set at 25% of the eligible costs. In addition, funding is provided for a maximum of twenty four (24) months and for an application to be considered for co-funding, the project value (based on eligible expenses) must be of at least Euro 50,000 while the maximum grant value is capped at Euro 100,000.
The following are costs considered to be eligible:
" Wage Costs (25% of cost for up to two years)
The beneficiary must retain the jobs assisted for a minimum of thirty-six (36) months from the date of recruitment. This type of support is capped at Euro 20,000 per person over the 24 month project period.
" Renting / leasing of equipment and production facilities (25% of cost for up to two years)
Support will be awarded for renting or leasing of equipment that is required by the enterprise to operate and also private production premises.
" Utilities (25% of cost for up to two years)
Support will be offered in the form of part-financing of water and electricity costs.