On Friday, the Ministry of Economy and Sustainable Development announced a call for “Grants for digitalization” intended for micro, small and medium-sized enterprises.
According to a statement from the Ministry, the call provides funds for the introduction of digital solutions in business through investments in digital tools and equipment for the introduction of a new way of doing business, or new or significantly improved production procedures, delivery of services or organizational practices and strengthening digital skills.
A total of HRK 206 million was provided for the call, with the lowest individual grant amount of HRK 150,000 and the highest of HRK 750,000.
When and how are applications received?
Applications are accepted from July 1 at 11 a.m. to August 12, 2022, until 11 a.m. in the “temporary call” modality. This means that the call does not close before the last day of application, regardless of the number of registered projects.
Project proposals are submitted electronically, through the eNPOO system on which all information and call documentation are published.
Who are the eligible applicants?
Eligible applicants are micro, small, and medium enterprises with at least 3 full-time employees in the previous calendar year. SMEs must be established by 2021 at the latest and were not allowed to end the previous financial year with a loss.
In the project proposal, the applicant must state its capacities for project implementation, ie explain the financial, human, technical, and/or technological resources required for the organization of the subject activity, as well as for the implementation of post-project activities.
The total available amount of grants for the award under this Call of 206,000,000.00 HRK (27,340,898.53 euros), is provided in the State Budget of the Republic of Croatia at source 581 Mechanism for Recovery and Resilience.
The lowest or highest amount of grants that can be awarded to an individual project is:
- lowest amount – 150,000.00 HRK (19,908.42 euros)
- highest amount – 750,000.00 HRK (99,542.11 euros)
Activities that will be eligible for funding under the call are the development, development, or procurement of digital solutions and technologies for the digital transformation of business processes or production, implementation, adaptation, or integration of digital solutions and technologies, and strengthening digital skills of employees related to the above activities.
It is important to note that the applicant has the right to submit only one project proposal under the said Call.
What is the intensity of the support?
The maximum aid intensity depends on the unit of regional self-government in whose territory the applicant has its registered office, ie on the group in which the respective POE (R) S is classified by the Decision on the classification of local and regional self-government units according to the level of development (OG 132 / 17):
- Up to 70% of eligible costs for applicants based in the area of POE (R) S classified in the I. development group
- Up to 65% of eligible costs for applicants based in the area of POE (R) S classified in II. development group
- Up to 60% of eligible costs for applicants based in the area of POE (R) S classified in III. development group
- Up to 55% of eligible costs for applicants based in the area of POE (R) S classified in IV. development group
What are the eligible project activities?
Eligible activities that can be funded under this Call include the introduction of new or significantly improved production processes, service delivery methods, or organizational practices through:
- development/development/procurement of digital solutions and technologies intended for the improvement of digitalization for the digital transformation of business/business processes/production
- implementation, adaptation, and integration of digital solutions and technologies with existing/new internal/external systems that contribute to digitalization for digital business transformation
- Strengthening the digital skills of employees, including skills related to cloud technologies, related to the activities.
Another very important piece of information is those project activities should be completed within 24 months.
Detailed instructions around the entire Call, such as eligible and unacceptable cost categories, can be found in the Ministry’s Instructions, which are available by clicking the button below.
Digitalization Vouchers – announcement
The digitalization voucher aims to strengthen the capacity of SMEs to implement digitalization and start the process of digital transformation. It has been announced for the first half of 2022 and will be funded based on investment vouchers in the development of digital transformation strategies, digital marketing, complex digital products and services, digital skills, and cyber resilience.
The target group is SMEs who want to develop their digital business model with an emphasis on innovative projects. It is important to note that using one voucher is not a prerequisite for using another. SMEs can use a maximum of two vouchers per tender.
| VOUCHERS’ NAME | GOALS | ELIGIBLE COSTS | AMOUNT OF AID |
|---|---|---|---|
| Digital Transformation Voucher | This voucher aims to help SMEs test the potential for digitalization, examine the viability of the idea and design a strategy for digital transformation. | Development of digital transformation strategy, general costs, and external services. | The maximum amount of vouchers per project proposal: HRK 76,000 |
| Digital Skills Voucher | The purpose of this voucher is to assist employees in acquiring the skills needed to carry out digital transformation, which may include one or more education and training programs. | Artificial intelligence and security, training of software design experts, training of data management experts, and development of new digital skills related to cloud computing. | The maximum amount of vouchers per project proposal: HRK 75,000 |
| Digital Marketing Voucher | This voucher aims to enable the development and implementation of digital marketing strategies for SMEs following the relevant factors necessary for the digitalization of their businesses. | Website development, development, and testing of mobile applications, development of online stores and booking platforms, and use of data to improve interaction with customers. | The maximum amount of vouchers per project proposal: HRK 75,000 |
| Voucher for the development or application of complex digital products and services | This voucher aims to support research and development pilot projects for the introduction of complex digital products and services. This includes a wide range of services, and some of them are the Internet of Things (IoT), smart services, automation, projects involving Big Data, virtual and augmented realities, and the like. | Services of research and development entities that may include material costs incurred as part of development services, (eg prototyping). | The maximum amount of vouchers per project proposal: HRK 150,000 |
| Cyber Resistance Voucher | The goal of the voucher is to increase cyber security by introducing system security checks. | Preparation of safety and technical reports, data security checks, and penetration tests. | The maximum amount of vouchers per project proposal: HRK 110,000 |
If you require more information or need help with this Call and voucher, feel free to contact us. The CONFIDA team of experts is at your disposal!
Source: Ministry of Economy and Sustainable Development
