Review On Types & Beneficiaries Of EU Funding For StartUps

The EU gives funding in the shape of loans and grants for a large array of programs and projects that fall into the ambit of education, health, consumer protection, environmental protection and humanitarian aid. Funding is managed as per strict guidelines which help to assure that there is tight control over how funds are utilized and that funds are spent in a lucid and responsible way.

EU funding for StartUps is intricate because there are several & varied types of programs managed by various bodies. More than 76 percent of the EU budget is managed by the Member States. This contains the structural funds, which finance regional policy, social and training programs, and in addition agribusiness (that comprise support for agriculturists).


Two principal kinds of funding

Grants for special projects, normally following a public announcement called a 'call for proposals'. Some portion of the financing originates from the EU, apart from extra sources.

Public contracts to purchase services, goods or works to assure the functioning of EU establishments or programs. Contracts are granted through calls for tenders (public procurement) and cover a wide array of areas: researches, technical help and education; consultancy, conference organization, IT equipment purchases, and so on.

Working as a team, the 28 EU Chiefs have an utmost political responsibility for assuring that EU funds are spent appropriately. But since most EU funding for StartUps is managed at a national level, national governments are in charge of performing checks and yearly reviews.

Who are the main beneficiaries?

Small Commercial Establishments

Can get EU funding via grants, loans, and guarantees. Grants give direct support, whereas other funding is got through programs managed at national level.

Non Governmental & Civil Society Associations

Usually, qualify for funding if they are active in EU policy territories on a non-profit basis.

Youngsters

Two fundamental kinds of funding:

Lifelong Learning Program - educational opportunities through Erasmus, support to school going children who are approaching the end of secondary education, and vocational training in an international destination.

Youth in Action Program - co-funding of ventures which promote civic involvement, humanitarian effort, and a wider multicultural outlook.


To conclude, this brief review provides a basic insight into what actually is EU funding all about.

Importance Of Business Plan When Seeking Funds

It isn't unusual for small businesses with modest resources to be worried at the thought of facing their bank manager, to apply for business financing. Why it is so is obvious; no matter how long you have been with your bank, you will need to conform to formalities with regards to funding your business start-up or business growth. Basically, you will be asked to document a business plan for financing, which must be presented with your application form.

You may be curious as to why you have to present a business plan to lenders or investors when seeking innovation funding. To find that out just ask yourself - Why banks require that you should formulate a business plan? Then you will make sense of why investors demand this valuable document that will cost you some time and money to assemble. However, at the end of the day, if done well, it will allow you to raise the required finance.

Why Banks Require A Business Plan

Through innovation funding of your business banks are taking a risk and want to fathom that risk and, compare it against the expected reward from your venture. Do you know how banks create wealth for their shareholders? They do it by investing their capital (money, usually investors' funds and borrowed funds) in your enterprise. And doing so they hope to earn higher returns than the costs they need to pay, for borrowing or raising capital on their own. If you are unable to provide the desired returns on their investment, they will eventually become a casualty of your problems, which will cost them their business.


Banks want to fully understand the management team you have picked, to manage the funds invested in your business. This is a concept most enterprises don’t discern fully. They may believe their business ideas or superb products are good enough ingredients for business success. This is far from the truth. An enterprise consists of integrated functional activities created to achieve a coveted target. These integrated activities must be handled ably by various individuals inside or outside the organization to realize the desired successful results.


Conclusion

To conclude, the banks or investors want full assurance that your business model is strong.