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FAME – BEJA GLOBAL PROGRAMME
Published on 24 January 2019
Portugal
Alentejo
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About this good practice
The programme was based on integrating local policies and agencies to attract and support start-ups, micro firms and SMEs. It aimed to attract entrepreneurial projects, particularly those most likely to export goods or services from the Beja region.
BEJA FAME was a financial instrument aimed at supporting new businesses in innovative sectors with lead partners; Beja City Council and a National Mutual Guarantee Association providing loans at a preferential interest rate in comparison to those available from other institutions. Key benefits of the program ranged from extended repayment terms, on-going support in addition to subsidised interest rates. SMEs benefited from a mutual guarantee and a tailored package of support, rather than a specific program.
To benefit from the Mutual Guarantee System, companies needed to meet the EU definition for an SME. Funding was aimed at micro and small enterprises operating in industry, commerce, tourism and tertiary sectors, priority was given to innovative projects, particularly high tech companies and companies most likely to export their products and services .
BEJA GLOBAL main mission:
• local strategic and operational endeavour to support investment attractiveness
• SME internationalization
• Local entrepreneurship
• access to innovation and investment financing and economic mobility
BEJA FAME was a financial instrument aimed at supporting new businesses in innovative sectors with lead partners; Beja City Council and a National Mutual Guarantee Association providing loans at a preferential interest rate in comparison to those available from other institutions. Key benefits of the program ranged from extended repayment terms, on-going support in addition to subsidised interest rates. SMEs benefited from a mutual guarantee and a tailored package of support, rather than a specific program.
To benefit from the Mutual Guarantee System, companies needed to meet the EU definition for an SME. Funding was aimed at micro and small enterprises operating in industry, commerce, tourism and tertiary sectors, priority was given to innovative projects, particularly high tech companies and companies most likely to export their products and services .
BEJA GLOBAL main mission:
• local strategic and operational endeavour to support investment attractiveness
• SME internationalization
• Local entrepreneurship
• access to innovation and investment financing and economic mobility
Resources needed
The Banco Espírito Santo (BES) provides 80% of the loan and the municipality the remaining 20%. Eligible companies can borrow up to 100% of the investment needed up to a maximum value of €45,000 per project. Partner administrative costs are estimated at 7% of investment costs.
Evidence of success
Legacy benefits arising from the project include jobs created and contribution to economic growth. The simplicity of the programme, ease of access to finance and the mutual guarantee scheme have been the most successful aspects of the program; with the least successful aspect its limitation to small firms.
Key measures in 2011:
Applications Submitted 15
Applications Accepted 10
Funding Granted to successful SMEs € 0,5M
SME investment € 0,3M
New Enterprises Started 10
Jobs Created 40 appro
Key measures in 2011:
Applications Submitted 15
Applications Accepted 10
Funding Granted to successful SMEs € 0,5M
SME investment € 0,3M
New Enterprises Started 10
Jobs Created 40 appro
Potential for learning or transfer
Beja is reinventing itself as a “service city”, increasingly oriented towards the knowledge and sustainability economy. The regions strategy of driving up growth by collaborating with all the stakeholders involved to develop its infrastructure, attract inward investment, focus on new technologies as well as encouraging and supporting SMEs through a mutual guarantee scheme is a similar approach adopted by other European cities and The program is transferable to other regions.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Municipal Council of Beja
Portugal
Alentejo
Contact
senior project manager