Phases 1, 2 & 3 of the SME Instrument

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Luke Cloherty, Editor

 

For the first blog post on our shiny new website, I feel it sensible to explain briefly and basically what the three main stages of the European Commission’s (EC) SME Instrument are and what they entail for applicants.

So, let’s start with some background information about why this special funding instrument exists…

The European Commission came together and realised that some stimulation across all sectors was needed in order to inspire innovative entrepreneurs to create the kinds of products and services that make life simpler, more interesting and ultimately more prosperous for all. Enter Horizon 2020, its unique directive for the years 2014 through 2020 to provide funding for innovative projects large and small within the EU and for certain selected no-EU affiliate states. The directive makes funding, mentoring and market release available for the right kinds of ideas, but maybe it’s best if we get the EC’s official word on it:

“Small and Medium-sized Enterprises that are EU-based or established in a country associated to Horizon 2020 can now get EU funding and support for innovation projects that will help them grow and expand their activities into other countries – in Europe and beyond”. (Source: European Commission Website)

Inno Today sme instrument graph

 

There are three phases of funding and mentoring available, which are simply explained on our SME Instrument page, but I’ll go into a little more detail below about amounts of funding available and mentoring opportunities:

 

  • Phase 1: Business innovation grants for feasibility assessment purposes are made available at Phase 1 and up to EUR 50,000 can be paid out in a lump sum per project under the proviso that this would be 70% of the project’s total cost at this stage. For those looking to get something off the ground and turn an idea into a reality, Phase 1 funding can be hugely helpful in making those first baby steps towards the next big thing. Free business coaching “in order to support and enhance the firm’s innovation capacity and help align the project to strategic business needs” (Source European Commission Website) is available at Phase 1.
  • Phase 2: Business innovation grants for innovation development & demonstration purposes can me made available at Phase 2 to the tune of up to EUR 2,5 million, with a minimum of EUR 500,000, again, under the proviso that this would cover 70% of the total project cost at this stage. Free business coaching “in order to support and enhance the firm’s innovation capacity and help align the project to strategic business needs” (Source European Commission Website) is also available at Phase 2.
  • Phase 3: Access to a wide range of innovation support services and facilitated access to risk finance can be made available to applicants at Phase 3, in which a proper market launch and accumulation of the funding and planning at Phases 1 and 2 are fully realised. Phase 3 is the point at which the applicant’s original concept becomes a genuine commercial enterprise and is thusly the point at which all the hard work and risks taken in Phases 1 and 2 can really pay off.

 

The EC’s SME Instrument is a truly unique and once in a lifetime directive that shows not only a commitment on its part to stimulate new ideas and innovative thinking, but also a genuine push to create and maintain growth throughout the EU and on the global market.

 


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