Supporting SMEs in response to the COVID -19 pandemic

By project UpGradeSME

Published on 29 September 2022

Romania

About this good practice

The program aim is to support the capacity of SMEs to grow in regional, national and international markets and to engage in innovation processes.

Thus, some SMEs need a grant for working capital in order to pay current debts, build up stocks of raw materials, goods, consumables, but also to purchase medical equipment necessary for their employees. At the same time, as a result of the COVID-19 crisis some SMEs must reallocate their activity by creating new production capacities, by carrying out new activities or by implementing new investment projects, and for this they need grants for low value investments so as to create small production capacities and to be able to obtain new products and services adapted to the consumer requirements.

Given that there is a substantial risk of economic recession and in this context many segments of the European economy are blocked due to COVID-19, supply chains and global trade are severely affected, support measures are needed to unblock them. and restarting economic activities.

In this context, the Ministry of Economy in partnership with the Agencies for Small and Medium Enterprises, Investment Attraction and Export Promotion will manage the following forms of support for SMEs:
1. microgrants for micro-enterprises with associate/sole administrator, without individual employment contracts;
2. working capital grants: for micro-enterprises and SMEs;
3. investment grants to SMEs: for investments in productive activities in SMEs.

Resources needed

a) Technical assistance for the management of the contracting and monitoring;
b) MICROGRANT in fixed amount for working capital (2,000 EUR/beneficiary);
c) Working capital grants (15% of turnover for 2019);
d) Investment grants in productive activities (50,000-200,000EUR).

Evidence of success

The program will support the capacity of SMEs to grow in regional, national and international markets and to engage in innovation processes:
• Maintaining SMEs in Romania in the market;
• Maintaining / increasing the number of employees;
• Diversification of the activities of Romanian SMEs;
• Supporting economic activities for reducing the negative balance of trade;
• Providing the opportunity for SMEs to make partnerships abroad easier.

Potential for learning or transfer

As the COVID-19 crisis has affected SMEs at European level (and even worldwide), we consider that some measures taken to support the recovery of this SMEs and their further economic development are welcome. Thus, every region can and should learn from this program aiming to strengthening the market position of SMEs affected by the COVID-19 pandemic by supporting the capacity of SMEs to grow in regional, national and international markets and to engage in innovation processes.
Transferable practices for other regions include:
- Creating opportunities for SMEs in order to facilitate their development and access of SMEs to foreign markets as well as reducing the market gap.
- The strong commitment to collaboration and a joined up offer from public authorities and decision makers