If you own or work in a SME you know that times are tough for this type of businesses. That’s why the European Union has set up several schemes to financially support SMEs. This article will provide an overview of the most prevalent EU funding opportunities open for SMEs in the first quarter of 2023.
Why SMEs need financial support from the EU
SMEs are the backbone of European industry and economy. They represent 99.8% of all enterprises in the European Union (EU) non-financial business sector and two-thirds of employment. According to the latest estimates, there were 23.1 million SMEs in the EU in 2022; most of them being micro-sized firms which employ fewer than nine people.
The last years have been particularly difficult for SMEs. Businesses have been hit hard by the economic fallout and market disruptions caused by the COVID-19 pandemic. In addition, the Russian invasion of Ukraine, initiated almost a year ago, continues to have many indirect consequences that are often disproportionately harmful to European SMEs. These challenges come at a crucial time when ICT SMEs are playing a crucial role in advancing Europe’s digital and green transitions and tackling strategic challenges, such as resilience and the energy crisis.
Due to the above-stated importance of SMEs in the European economy and the current harsh economic context, it is no surprise that the EU intends to support SMEs financially. Facilitating access to finance and skills is one of the three pillars of the Relief Package for SMEs, which was announced in September 2022 by Ursula Van der Leyen during her State of the Union Address. In her speech the President of the EU Commission stressed the need to support SMEs:
“We must remove the obstacles that still hold our small companies back. They must be at the centre of this transformation – because they are the backbone of Europe’s long history of industrial prowess. And they have always put their employees first – even and especially in times of crisis. But inflation and uncertainty are weighing especially hard on them”
Ursula Van der Leyen, President of the European Commission
Why your company should try to get EU funding
This might sound strange, but there is more to acquiring EU funds than getting your hands on the money. In most cases, answering a call for projects will require you to apply in a consortium. This can be with other SMEs or with various kinds of organisations (Ministeries, local authorities, schools/universities, NGOs etc). Therefore, applying to different EU funding schemes is a formidable opportunity for you to expand your network, create alliances and get to know your SME and area of work known to relevant stakeholders at the EU level and, in some cases, also at the national, regional or local level.
Besides, it is also common that having previously received EU funding will make it easier for your company to benefit from other funding opportunity in the future, as this can be seen as a mark of confidence in your business from the EU institutions.
Every year, the EU supports more than 200,000 businesses.
In the last years, the EU Research and Innovation Programmes granted 23.3 billion euros to 98 756 SMEs. When we look at figures on the country level, the top 3 countries in which SMEs received grants from the Research and Innovation Programmes were Germany which 3.04 billion euros, Spain with 2.37 billion euros and the United Kingdom with 2.29 billion euros.
It is important to note that the same company can apply to multiple calls and receive multiples grants from the EU and that companies who are outside the EU are also eligible to some EU funding (usually under a consortium with entities located in the EU).
Many different European funding opportunities for SMEs exist but are often hidden in a jungle of information. Lykke Advice can help you navigate this jungle: this article will provide an overview of the most prevalent EU funding opportunities open for SMEs in the first quarter of 2023.
Large Scale Funds
1. The Recovery and Resilience Facility
The Recovery and Resilience Facility (RRF) finances reforms and investments in EU countries from the start of the pandemic in February 2020 until 31 December 2026. Its aim is to mitigate the economic and social impact of the COVID-19 crisis and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
One of the pillars of the RRF promotes smart, sustainable and inclusive growth, entrepreneurship, competitiveness, industrialisation and reindustrialisation, renovation of buildings, improving the business environment, fostering research, development and innovation, and supporting SME.
According to Thierry Breton, Commissioner for the Internal Market, the RFF makes unprecedented levels of funding available for greening, digitalisation, and upskilling in SMEs. It amounts to 44 billion euros of measures to support SMEs directly in 22 national plans. And SMEs can benefit from broader measures worth 109 billion euros, such as loans or equity support open to all companies.
More information about this funding opportunity here.
2. InvestEU Fund
The InvestEU Fund combines thirteen centrally managed EU financial instruments and the European Fund for Strategic Investments into one instrument. It is expected to mobilise at least 372 billions euros of public and private investments. The Fund has a policy window on SMEs. SMEs should apply to their local commercial or public banks whose financial products are covered by the EU guarantee in their country or region. The local intermediary will inform them if a particular financing programme is covered by the InvestEU Fund.
More information about this funding opportunity here.
Innovation Specific Funds
3. European Innovation Council
The European Commission adopted the 2023 work programme of the European Innovation Council. It opens 3 funding programmes worth over 1.6 billion euros in 2023 for breakthrough innovators to scale up and create new markets: EIC Pathfinder, EIC Transition and EIC Accelerator. Each programme has 2 types of calls: “EIC Open”, which consists of open calls with no predefined thematic priorities and EIC Challenges” to provide funding to address specific technological and innovation breakthroughs.
EIC Accelerator is the call targeting SMEs and has an overall budget of 1.13 billion euros.
The following table summarises all the open calls:
More information on this funding opportunity here.
4. Horizon Europe Programme: Preparatory action for setting up joint programmes among innovation ecosystems actors
Under this call projects are expected, amongst others, to:
– Open dialogue, prepare the ground and facilitate the agreement among Member States, Associated Countries, and/or their regions, in cooperation with the private sector and research and innovation actors, towards more dynamic, inclusive, gender diverse, and connected innovation ecosystems
-Prepare joint long-term programmes and action plans fostering collaboration, common innovation-support activities, and the creation of common knowledge assets among EU, national, regional and/or local level innovation ecosystems.
Budget: 15 000 000 EUR
Grants: 1 grant of 15 000 0000 EUR
Deadline for application: 23/03/2023
More information on this funding opportunity here.
5. Horizon Europe Programme: Boosting generation and diffusion of advanced technologies in SMEs based on a supply chain model
Under this call, projects are expected, amongst others, to:
-Build a model for each industrial ecosystem to identify disruptions and technological opportunities for the uptake of advanced technologies in a supply chain
-Alert on current disruptions and identify potential future disruptions
-Identify potential alternate suppliers of critical advanced technologies
-Explore concrete collaboration opportunities between different type of EU businesses, particularly tech-savvy SMEs and traditional SMEs
-Increase the adoption of advanced technologies in traditional SMEs, looking at skills shortages
Budget: 10 000 000 EUR
Grants: 4 grants between 2 000 000 EUR and 3 000 000 EUR
Deadline for application: 20/04/2023
More information on this funding opportunity here.
SMEs Specific Funds
6. SURE 5.0 project – Acceleration Programme 1
The SURE5.0 Acceleration Programme 1 aims to guide and finance SMEs operating in the Mobility, Transport & Automotive, Aerospace & Defence, and Electronics manufacturing value in need of adopting technologies or services for industry 5.0 transition. To do so, this program offers individual assessment and tailored services worth 10K euros. It will also deliver EUR 50K of equity-free funding per SME to implement Industry 5.0 within their company.
Budget: 1 850 000 EUR
Grants: individual assessment and tailored services worth 10 000 EUR for 50 SMEs + 50 0000 EUR for 27 SMEs
Deadline for application: 01/03/2023
More information on this funding opportunity here.
7. SecurIT Prototyping
SecurIT Prototyping will select projects aiming to develop new prototypes in the domains of security and cybersecurity. Projects must be submitted by a consortium of at least 2 SMEs and should address one of the SecurIT challenges: sensitive infrastructure protection, disaster resilience and protection of public spaces. Under this instrument SecurIT will support SMEs in translating their feasibility plan into a prototype.
Budget: 1 554 000 EUR
Grants: 21 consortia will receive a max grant of 74 000 EUR (max 60 000 EUR per SME)
Deadline for application: 14/03/2023
More information on this funding opportunity here.
8. SecurIT Demonstration
SecurIT Demonstration will select projects aiming to develop new demonstrators in the domains of security and cybersecurity. Projects must be submitted by the consortia of at least 2 SMEs and should address one of the SecurIT challenges: sensitive infrastructure protection, disaster resilience and protection of public spaces. Under this instrument SecurIT will support the piloting and validation of SMEs’ solution.
Budget: 1 848 000 EUR
Grants: 21 consortia will receive a max grant of 88 000 EUR (max 60 000 EUR per SME)
Deadline for application: 14/03/2023
More information on this funding opportunity here.
9. AMULET 2nd Open Call
This call will select consortia of minimum 2 and maximum 3 SMEs to develop lightweight materials (polymer-based composites, ceramic matrix composites and light metal alloys) for the automotive, aerospace and aeronautics, energy and building sectors.
Budget: 1 277 000 EUR
Grants: Stage 1: 26 SME consortia will receive 23 000 EUR. Stage 2: 7 consortia will receive 80 000 EUR. Stage 3: 7 consortia will receive 17 000 EUR. Maximum sum per consortia for the 3 stages: 120 000 EUR.
Deadline for application: 22/03/2023
More information on this funding opportunity here.
10. Green Offshore Tech – Second call
This call will select projects aiming to develop new products, processes, or services for Green Offshore Production and Transport and addressing at least one of the following topics:
– Advanced Materials
– Advanced Manufacturing & Digitalisation (IoT, AI, Big data)
-Environmental Technologies (Circular economy – Waste Prevention, Reuse, Recycle, Recovery)
– Green Shipping and New Energy Carriers (Hydrogen, Methanol, Ammonia, Lithium-ion Cell, LNG)
Budget: 1 560 000 EUR
Grants: Phase 1: 54 projects will receive 5,000 EUR. Phase 2: 26 projects of phase 1 will receive 45,000 EUR. Phase 3: 12 projects of phase 2 will receive 10,000 EUR.
Deadline for application: 24/03/2023
More information on this funding opportunity here.
How Lykke Advice can be useful to your company
As a Brussels-based consultancy, Lykke Advice can help your SME apply to EU grants and monitor relevant EU funding opportunities for your company. Besides, we provide advice to companies and associations regarding the latest developments in the European institutions. We help you identify how upcoming legislation might affect your organisation. Please contact us if you would like to know more about our services and influence the political process to make sure that the legislation benefits your interests.
by Farweb