European Union Structural Fund will invest €73,38M in Latvian small and medium-sized enterprises
European Union Structural Fund will invest €73,38M in Latvian small and medium-sized enterprises (SME). 1,5K companies developing their business projects will receive financing, of which at least 300 will be the authors of new ideas. The program aims to motivate companies to innovate, produce high-value-added products in the area of medium and high technologies and creative industries, and promote export growth in the supported enterprises. Latvian Investment and Development Agency (LIAA) proposed this initiative.
The program will include support for innovation motivation activity, business incubation support, and export support.
Support for innovation motivation activity will include, for example, launching new partnerships and cooperation projects and implementing training programs to promote entrepreneurship and innovation. The total funding of this activity will estimate at €4,82M.
Business incubation support aims to provide grants for starting a business, rental of premises, development of prototyping and technology, purchase of production equipment and raw materials, one minimum monthly salary established in the country, and the cost of related taxes and fees per employee once for 12 months. LIAA will provide pre-incubation aid to young entrepreneurs, organize business and export promotion events, etc. The total funding of the activity is €37,96M.
EU Structural Fund will allocate €28,94M to support export growth. The entrepreneurs will receive grants for participation in international events, development of publicity, advertising marketing materials, membership in international industry associations, adaptation of products or services to foreign markets, and other activities.
LIAA plans that the SME’s turnover will grow by 12%, and the exports of their products will increase by 20% or €0,6 Bln annually between 2024 and 2029. The Structural Fund will invest in 700 exporting companies by creating 1K new jobs.
