The programme “YOUNG ENTERPRISES” includes support for enterprises younger than 5 years, which due to the specifics of the development and no track record, have difficulties in obtaining the necessary financial resources on the market. The purpose of the programme is to provide the initial financial support for entrepreneurial ideas and / or for already established young enterprises that have a guaranteed market and demonstrate the potential increase in value added per employee. Favourable incentives will especially target enterprises with high share of own knowledge, innovation and potential of creating products or services with high value added.
Young enterprises represent a very important group of companies and therefore appropriate and development cycle adequate financial support is necessary for rapid and intensive development of business ideas or projects. Despite the fact that the programme covers the entire group of young enterprises, we have, on one hand, enterprises or entrepreneurial teams with high growth potential and the need for entering foreign markets and on the other hand, enterprises or entrepreneurial teams which develop their own entrepreneurial idea and show an average growth dynamics.
For YOUNG innovative enterprises SEF has designed a series of products from start-up, preparation of MVP (minimum viable product), to examining market potential, first entry into market and expansion to new markets. This concretely means that YOUNG ENTERPRISES are offered products in all four stages of development.
Figure 1: Comprehensive financial support with product adapted to development phases for YOUNG enterprises
This picture shows that SEF begins with the start-up financial support solely through public funds. As the development activities in enterprises become more demanding and financially more extensive, than SEF is approaching a combination of public-private resources. This is the main focus of the European Commission also for the new Financial Perspective 2014-2020.
The primary purpose of phase support is that new innovative enterprises take advantage of financial incentives for each life cycle stage separately. Of course also unforeseen situations can arise. Therefore, applicants may choose to skip any of the phases and apply for financing in the next phase. However each product has its own specifics taking into account the principle of financial incentives following the life cycle or development cycle of new innovative enterprises.
However, young enterprises face significant risks, which don’t allow them to succeed in the market. Therefore it is essential that young enterprises, particularly innovative, rapidly growing and with potential of entering the global market, have at their disposal adequate environment of “thinkalikes”, most advanced business knowledge, as well as advisors and mentors to help them through the most turning points of growth of the young enterprise. Therefore, the SEF already implements “SPS TWIN” at certain individual products for young enterprises that in addition to adequate financial incentives also enable enterprises the access to necessary skills and experience of mentors or other advisors and experts.