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Accessing EU funding for your business
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
Small and Medium Enterprises (SMEs) are an integral part of Europe’s economy and the European Commission provides information, supports and funding sources to help them develop and grow.
They employ two out of every three employees and create 85% of all new jobs so it’s also important to use the EU’s strength to protect small businesses when economic challenges emerge.
There’s lots of advice and support available from Your Europe Business, the EU portal designed to help SMEs do business cross-border and take advantage of the European Single Market.
The portal provides information on everything from starting up and developing a business to finance and funding opportunities.
There are also links to national contact points in all Member States as well as assistance services for more personalised help and advice.
The Enterprise Europe Network Ireland (EEN) is there as well, to help Irish companies make the most of business and technology opportunities in the EU and other major global markets.
EEN Ireland can support SMEs to grow through tailored support, new business and technology partnerships, commercial opportunities, licensing deals and by finding partners for EU funded R&D.
Services are delivered by a partnership between Enterprise Ireland, Cork Chamber of Commerce, Dublin Chamber of Commerce and Local Enterprise Offices (LEOs).
The Executive Agency for Small and Medium-sized Enterprises (EASME) is another information source as it manages several EU programmes that help with funding and support on behalf of the European Commission.
SMEs interested in testing and implementing digital innovations can apply to open calls from EU projects related to Digital Innovation Hubs (DIHs).
These hubs act as one-stop-shops where companies, especially SMEs and start-ups, can get access to technology-testing, financing advice, market intelligence and networking opportunities.
The EU SME Strategy for a sustainable and digital Europe, launched in March 2020, aims to create more DIHs, accelerate growth of high tech SMEs and provide them with information on solutions to sustainability challenges.
There are also opportunities being created through the European Green Deal, the EU’s roadmap for tackling climate change and making the economy sustainable.
The Green Action Plan (GAP) has been set up to help SMEs take advantage of these new opportunities being created by the EU’s transition to a green economy.
If you’re just starting out with a small business venture you might be able to take part in the EU’s young entrepreneur exchange scheme.
Erasmus for Young Entrepreneurs is a cross-border exchange programme that gives new or aspiring entrepreneurs the chance to learn from experienced entrepreneurs running small businesses in other Member States.
Businesses looking to grow and develop need to be familiar with consumer regulation as it boosts confidence and trust in products and services as well as encouraging spending.
To help businesses comply with EU and national consumer law, the European Commission has set up the Consumer Law Ready programme.
Entrepreneurs or SME staff can learn how to provide the key pieces of information that must be given to consumers before a sale or contract is completed.
They can also attend training courses, watch videos and take tests to help them understand and comply with the EU Consumer Rights Directive.
Accessing funding is an issue all SMEs face during their development, and there are many potential sources available.
Every year the EU supports more than 200,000 businesses through business loans, microfinance, guarantees and venture capital.
The decision to provide EU financing is usually made by local financial institutions such as banks, venture capitalists or angel investors.
Under the EU Capital Requirements Regulation credit institutions are obliged to provide feedback on their lending decisions.
This helps businesses that are unsuccessful in a funding application to understand their financial position and see how they might get financed in the future. The European Commission website has links to institutions where Irish businesses of all sizes can apply for capital.
Europe’s programme for SMEs, COSME, is also designed to make it easier to access finance in all phases of business development, from creation to expansion.
Innovative Irish companies can also apply for EU funding and support for breakthrough projects with a market-creating potential under the EIC Accelerator (previously called the SME Instrument).
The EIC Accelerator allows Europe's brightest and boldest entrepreneurs to step forward and request funding for breakthrough ideas with the potential to create new markets or revolutionise existing ones.
The European Fund for Strategic Investments(link is external) (EFSI) has a dedicated SME window offering up to a total of €5.5 billion of either funding resources or guarantee capacity.
Financing tools and advisory services for innovators are also provided by InnovFin, a joint initiative launched by the European Investment Bank Group (EIB) and EIF in cooperation with the European Commission under the Horizon 2020 programme for research and innovation.
The Employment and Social Innovation (EaSI) programme is another EU financing instrument that’s designed to combat social exclusion and poverty by supporting vulnerable groups, micro-enterprises and social enterprises.
SMEs involved in creative enterprises can find support through the Cultural and Creative Sector Guarantee Facility (CCSGF).
More funding opportunities will soon be available for companies that support the European Green Deal through breakthrough innovations.