The program aims to support sound start-ups that will be directly linked to the creation of new jobs. For this reason, this program aims at creating micro and small, sustainable businesses focusing on innovative plans, as well as fostering employment.
The program “Start-Up Entrepreneurship” is co-financed by the European Social Fund (ESF) in the framework of the “Competitiveness, Entrepreneurship and Innovation (EPAnEK)” Operational Programme of PA 2014 – 2020 and with the application of the flexibility clause for financing interventions that fall within the scope of aid under the European Regional Development Fund (ERDF).
Potential beneficiaries of the action, to establish a new enterprise, are natural persons born before 1/1/1991 or associations of persons, who:
- are unemployed and have registered in OAED’s unemployment registry at the time of submitting the application or
- pursue a professional activity of providing services and are not salaried employees.
In the event of a corporation being formed all partners must fulfill these preconditions.
The Program’s Call contains means test criteria for both categories of beneficiaries.
Conditions of participation
The enterprises to be established as part of the investment proposals are required to:
- Register the business at the Tax Office within the timeline and with the legal form set forth in the Program Guide (it should be noted that the change of Activity Code Number (KAD) for those already pursuing a profession does not constitute starting a new business).
- Each eligible natural person should participate in only one investment proposal filed (either alone or as part of an investment scheme).
- The business plan should pertain to the eligible business activity categories, throughout the investment.
- The total amount of de minimis aid received by the company in the past, including the aid from this Action, should not exceed the amount of €200,000 (or €100,000 for the transport sector) within a period of three years (current financial year and (2) previous financial years) prior to the date of proposal inclusion.
Supported Priority Sectors
The supported activities must concern the following Priority Sectors of the Competitiveness, Entrepreneurship and Innovation Operational Program (EPAnEK):
- Cultural and Creative Industries
- Information and Communication Technologies (ICT)
- Health – Medicines
- Materials – Construction
Activities not supported by the ERDF (ΕC. 1301/2013, article 3 par.2) and the requirements of the De Minimis Regulation (ΕC. 1407/2013, article 1), as well as activities with respect to the restaurant sector and retail trade are excluded.
The enterprises to be established can only take on one of the following business forms: Limited Liability Company, Partnership, Limited Partnership, Private Company, sole proprietorship, as well as the Social Cooperative Enterprise set forth in L. 4019/2011.
The eligible categories for business activities (Activity Code Numbers – KAD), which will be subsidised in the context of the Action are set out in detail in the Call for Proposals of the Program.
Project’s Budget – Geographical Distribution
In the context of the program, projects with a total investment budget (subsidised budget) up to €60,000 will be subsidised.
Aid rate for the investment proposals is set at 100% of the total investment budget.
Up to 40% of the corresponding Public Expenditure can be paid in advance by providing a letter of guarantee for the same amount by a bank or other financial institution established in one of the EU member states.
The funding is provided by the Greek State and the European Union and specifically the European Social Fund (ESF) by using the flexibility clause for financing interventions that fall under the scope of aid of the ERDF.
Action’s budget for public expenditure amounts to €120 million and will be allocated in two (2) cycles (1st cycle: 60% and 2nd cycle: 40%). The present program of the 1st cycle is financed with the total amount of €72 million (Public Expenditure) and is allocated to the regions throughout the country as follows:
- Eastern Macedonia – Thrace, Central Macedonia, Epirus, Thessaly, Western Greece: €43,440,000
- Western Macedonia, Ionian Islands, Peloponnese, Northern Aegean, Crete: €12,780,000
- Attica: €11,040,000
- Sterea Ellada: €2,760,000
- Southern Aegean: €1,920,000
Project Duration: twenty four (24) months from the date for the decision to include the business plan.
- The necessary professional productive equipment at a rate of up to 40% of the total budget of the plan (besides the cost of AWUs);
- The operational cost of an activity (rent for professional premises, insurance contributions, third party expenses, such as electricity, telephony, water, natural gas, mobile professional telephony bills);
- Expenses for hosting the company at an incubator for the first 2 years of operation (provision of secretarial and administrative support, use of equipment, specialised advisory services – market analysis, legal and accounting issues, development of a business plan, human resources issues, specialised education / training services, networking actions for the support of business groups, co-ordination and evaluation of implementation, etc.);
- Expenses for promotional activities and networking;
- Τhe cost of salaried work (in the event of hiring an employee) up to one annual working unit (AWU);
- General equipment (offices, seating, etc.);
- Accessibility interventions for people with disabilities;
- Third party fees.
It should be noted that enterprises that will be subsidized for their productive equipment should be maintained for at least three (3) years from the completion of the business plan.
The first day of the application period (17/03/2016) is set as beginning of expenditure eligibility.