The European Union (EU) sets up programs to support businesses (I). These programs benefit primarily small and medium-sized enterprises (SMEs), which are the engine of the European economy (II).
I) The European definition of the SME
A. The European Commission defines an enterprise "as any entity, regardless of its legal form, engaged in an economic activity".
The primary factor is the economic activity and not the legal form.
This means that self-employed persons, partnerships and associations regularly involved in an economic activity can be considered as enterprises.
B. To qualify as an SME, 3 criteria must be met :
The thresholds are calculated differently for each of the following three categories of company: independent company, partner company and affiliated company.
C. Among SMEs, there are three different categories of enterprises
:
- The autonomous enterprise
: this is the one that is totally independent or has entered into one or more minority partnerships (less than 25% each) with other enterprises.
- The partner enterprise
: the enterprise holds a participation equal to or greater than 25% of the capital or voting rights of another enterprise or another enterprise holds a participation equal to or greater than 25% in the enterprise in question.
- Related company
: if the holdings with other companies exceed the 50% threshold, the companies are considered related. A subsidiary, a company whose capital is owned for more than 50% by another company, is therefore a related company.
The result of the calculation of the thresholds will determine whether the company complies with the European definition of an SME and therefore whether it is eligible for European aid specific to SMEs.
If you would like to know more about the European SME status, the criteria and thresholds to be checked, the data to be taken into consideration, the calculation of the number of employees, and how to calculate the thresholds according to the three categories of companies, do not hesitate to contact us.
II) Three examples of European funding
A. COSME: the program for the competitiveness of SMEs and enterprises
This program intervenes for the development of competitiveness as well as for the sustainable development of European companies.
For the period 2021/2027, the budget is 4.2 billion euros, 60% of which is distributed through financial instruments.
This program includes 4 objectives :
- Access to finance: "risk capital" and "loan guarantee" facilities.
- Access to the European Union market: support and advisory services to companies with, for example, the development of industrial policy cooperation.
- Improvement of the framework conditions for competitiveness.
- Promotion of entrepreneurship and entrepreneurial culture: e.g. the Erasmus program for young entrepreneurs.
This program is aimed at the 27 member states of the European Union, but also at third countries.
It is aimed at entrepreneurs, companies, SMEs, business support organizations, but also at financial intermediaries.
An example is
the Belgian group Technopolis,
a consulting firm for the evaluation of science, technology and innovation. The group received 11.33 million euros.
B. The Horizon Europe program for research and development
The Horizon Europe program mainly finances collaborative research, development and innovation projects in areas such as generic and industrial technologies, but also in societal challenges (health, food safety, clean energy, etc.).
This program can also fund more specific projects such as the "SME instrument" to enable SMEs to develop more easily on the market when they have a product or service project capable of stimulating growth.
Horizon Europe offers grants for companies with a co-financing rate of up to 70%.
One example is the consortium of five European academic and private partners and
the Canadian company Sernova. This is a regenerative medicine company that develops therapeutic technologies. It received 940,000 euros from the Horizon 2020 program in 2015 to fund the development of a therapeutic product for hemophilia.
C. Creative Europe
The Creative Europe program is divided into 3 strands.
- The first part deals with "culture" with, for example, the development of European platforms.
- The second part deals with the "media" aspect, which concerns the film, audiovisual and video game industries. It provides financial support for the development, distribution and promotion of projects led by European professionals.
- The last component is trans-sectoral and facilitates collaboration between creative sectors.
This program has a budget of 2.44 billion euros for the period 2021-2027, and for example the French company DK-BEL, in collaboration with the Greek company Quasi-Stellar and the Cypriot company Pelma have received funding to the tune of 199,990 euros for an underwater dance show with an immersed audience.
There are other European supports. We can help you define your needs for European support.