The various kinds of businesses/undertakings have access to funding from the European Union depending on the nature of their activities or project. Small and medium-sized enterprises, larger businesses, micro companies, entrepreneurs, etc. can benefit from obtaining funding from the European Union in support of a new idea or an existing business.

Several options of financing are available at the Union level:

- business loans;

- microfinance;

- guarantees;

- venture capital.

Two funding options have been established at the Union level: direct and indirect. The access to funds depends on the activities of the enterprise or the project prepared.

Direct funding

In this case, the allocation of funding is managed by the EU institutions. In direct funding, you can apply for grants and contracts.

Grants

Grants are provided on application for specific projects that relate to Union policies. Enterprises that prepare a project that contributes to the implementation of a particular Union policy or furthers the fulfilment of a particular programme can apply for a grant which they do not have to repay afterwards.

Contracts

This type of funding requires entering into a contract with EU institutions to buy services, goods or works that the enterprises need for their operations. These operations can be studies, training, organising workshops or conferences, technical equipment, etc.

Indirect funding

Indirect funding is managed by national and regional authorities and comprises nearly 80 % of the EU budget. This finance is accessible mainly through five separate stand-alone funds that come under the umbrella of the European Structural and Investment Funds.

European Regional Development Fund – regional and urban development

European Social Fund – social inclusion and good governance

Cohesion Fund – economic convergence by less-developed regions

European Agricultural Fund for Rural Development

European Maritime and Fisheries Fund

Applying and reporting under the funding programmes

Enterprises have a huge number of funding options at their disposal which, in turn, would contribute to the resilience and growth of their business. On application, the best opportunities are definitely available to innovative ideas. Innovation projects stand significantly stronger chances of being approved and allocated finance.

Enterprises are recommended to implement their business plans, to prioritise their ideas and to locate suitable programmes for funding them.

At the next stage, business entities should check the conditions for applying to the relevant programmes/funds and whether they are eligible. Only then enterprises or entrepreneurs should go ahead with writing a project. Attention needs to be paid to every detail, so that the project cannot be disqualified.

When the project is approved and funding is obtained, actual work on the project will follow, with a focus at this stage on spending and correct reporting of the funds received. Complying with the requirements of the programme and with the steps set forth in the project is absolutely essential because the European Union may impose sanctions and recover the amount disbursed in case of incorrect cost estimates and misreporting.

EU funding programmes