Government Subsidies

Government or institutional subsidies can help your business develop and grow. But even experts can find it difficult to keep track of the hundreds of different subsidies schemes which keep appearing and then disappearing. 

On the other hand, you must be ready to put some of your own money. It is extremely rare that the subvention will finance 100 per cent of the costs of any project. Subsidies typically cover 15 to 50 per cent of the total finance required for a certain project. Even if a larger proportion of the project cost is available, you will still need to invest time and resources in researching and applying for the subsidies.

Subsidies are usually only available for specified projects. For example, developing a new product, or by  demonstrating that the project would not take place and achieve the same benefits without the subsidies.

Professional Services Subsidies for Translation service

No matter how good the product or how successful export sales teams is, businesses that take international commerce seriously know that language differences can be a significant barrier to increasing their export markets. Recent research has shown that customers are up to four times more likely to make a purchase when they are addressed in their native language.

Most Chambers of Commerce in UK provide subsidised translation services and internationalisation consultancy. Contact your local chamber of Commerce for more details.

UK Nationwide Subsidies

Exports

Support is often available for businesses looking to export. The Department of Trade and Industry's Trade Partners UK offers funding to help exporters, as well as a range of charged, but subsidised, services.

Contact your local Business Link or Trade Partners UK:
(020 7215 5444
www.tradepartners.gov.uk.

Joint Research Projects

There are various sources of funding  for joint research projects undertaken by businesses and academic institutions. UK Government's LINK programmes support partnerships between UK companies and research organisations which develop products and processes in a range of technology and market sectors. Visit www.ost.gov.uk/link or call 020 7215 0053.

The European Commission's CRAFT programme provides funding to small and medium-sized businesses wanting to take part in EC research framework programmes in the field of science and technology. Visit www.cordis.lu/sme.

Innovation

There are subsidies designed to help companies innovate. A range of funding is available under the Small Business Service's R&D Project Subsidies scheme, which replaces the Smart scheme. The scheme's awards process places increased emphasis on proving your company's financial health. An associated subsidies to investigate an innovative idea, to help businesses prepare for innovation has also been launched.

Call 0845 600 9 006 or visit www.businesslink.org. Businesses in Wales wanting to develop new products and processes can apply for subsidies of up to £25,000. Contact Regional Innovation Subsidies: 029 2082 8730.

Environment

Some subsidies are designed to help protect the environment by reducing pollution or waste. For example, the LightSwitch programme provides rebates of up to £6,000 against the cost of energy-efficient lighting equipment. Call 0800 58 57 94

Training and Skills Development

You may be able to get funding for training and skills development. Assistance is generally provided through Business Link and the Learning and Skills Council.

Special subsidies

Location

The location your business operates in may entitle you to subsidies. You may be eligible for a range of special subsidies and support from both the UK Government and the European Commission if your business is in an economically depressed area, especially if it is one with high unemployment.

These areas include those in general industrial decline, those where major traditional industries such as steel, coal, textiles and fishing have collapsed, and some rural areas and inner-city areas. There are several different tiers of funding which reflect the relative economic needs of different regions. For more information, contact the Government Office for your region.

Sector

Although many subsidies are available across most sectors, some sectors may be specifically targeted for extra funding. Industries that may receive specific support include rural diversification, crafts, tourism and agriculture.

Employment

Some subsidies are intended to help new businesses and boost employment.  Local support (e.g. subsidised rent and rates) is often available to encourage small businesses to start up in particular areas. A project to build a new factory on barren land in a depressed area, with the potential to create new jobs and boost exports, might qualify for several different subsidies.

International Subsidies 

European businesses can get important subventions to back-up their projects from institutions such as the European Commission and the World Bank.

The EU

The European Commission and the European Investment Bank together spend some €13 billion ($17 billion) outside the EU each year. There are opportunities for consultants, suppliers and contractors who undertake EU development aid projects or participate in economic co-operation in developing countries.

Visit:
http://europa.eu.int/grants/info/introduction_en.htm
http://www.eib.org/projects/

MEDA

MEDA is the European Commission's development programme in the Near East and North Africa, promoting economic and social development and working towards a free trade area between the MEDA countries and the EU by 2010. Priority sectors include private sector development, health, education, rural development, civil society and cultural heritage programmes, environment, energy and transport.

Visit:
http://europa.eu.int/comm/external_relations/euromed/meda.htm

Tacis

Tacis is the European Union's assistance programme for the newly independent states of the former Soviet Union (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgystan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine) and Mongolia on both a national and regional basis.

Assistance is to be focused on six areas of co-operation :

• Support for institutional, legal and administrative reform
• Support to the private sector and assistance for economic development
• Support in addressing the social consequences of transition
• Development of infrastructure networks
• Promotion of environmental protection and management of natural resources
• Development of the rural economy.

Visit:
http://europa.eu.int/comm/external_relations/ceeca/tacis/

The World Bank

The World Bank is a consortium of organisations known officially as the World Bank Group. Almost every country in the world is a member of the Bank, either as a donor or borrower of funds. There are five agencies in the Group, each with its own set of programmes and protocols. Winning business through World Bank funded aid programmes can be relatively straightforward if you know where to look for opportunities and what rules to follow.

Visit:
http://www.worldbank.org/

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