By : Emily Thompson
Source : http://www.praguepost.com
Category : Small Business Grant
It takes money to make money, as the adage goes, and small businesses often have gaps in their cash flow that can put expenditures necessary for growing their business just out of reach. But in a country where small and midsize entrepreneurs represent 99 percent of all business owners and employ two-thirds of workers, they are not without support. Myriad grants are available to entrepreneurs registered in the Czech Republic, but unfortunately the bureaucracy involved can be quite overwhelming for the average small business owner. The Prague Post sat down with Luděk Hanáček, director of the Tax & Legal Department at Deloitte Czech Republic, to talk about the kinds of grants that are available and how to make the most of the money.
The Prague Post: What are some of the best grants available for small businesses now?
Luděk Hanáček: The most attractive cash grant for small and medium entrepreneurs is the grant for training employees and implementing processes for company development. This grant is attractive not only as a cash grant of up to 100 percent of total costs, but also because small and medium companies are growing quickly, and growth usually requires adaptability and the development of people, along with changes in processes.
Also, grants for marketing support are very likely to be used by small and midsize businesses. Granting up to 60 percent of costs for local or international marketing, Web presentation, attendance of fairs including the printing of marketing materials and other marketing costs can significantly help companies target new clients.
Both of these grants are focused on operating costs for small and midsize companies. There are also cash grants for investment costs related to purchasing new production machinery, reconstructing industrial buildings, creating new jobs in IT or outsourcing services.
TPP: Does the government show preference to particular types of companies in awarding grants?
LH: The majority of grants are provided for projects realized outside of the Prague region. It is due to the fact that the Prague region is so well developed compared with the rest of the Czech Republic that the seat of the entrepreneurial business may be in the region of Prague, but the realization of the project is more likely to be outside of this region.
TPP: Do you find that entrepreneurs in this country really take advantage of the grants available, or is there a lack of awareness about how they can get grant funding?
LH: If one looks at how many projects and entrepreneurs get grants, it seems like there is a great awareness about grant opportunities. From January 2007 to August 2011, more than 30,000 projects were granted EU funds, while thousands of other projects benefited from local funds.
What small and medium entrepreneurs need to see are real cases of how they can use grants. The texts of grant programs are sometimes very general, describing support for entrepreneurs' competitiveness or support for employees' adaptability. Entrepreneurs need to hear that they can get grants for printing marketing materials, stands at fairs, Web pages, language or manager training.
TPP: How can small businesses do more to maximize grants once they receive them?
LH: This is a very important question, and thank you for this. Many entrepreneurs think the decision of a ministry to give a grant is the end product. As we usually say to our clients at Deloitte: You can buy a bottle of champagne and put it in the fridge when you sign the contract with the ministry. After fulfilling all of the conditions and completing the final grant project report, you can open it and drink.
Unfortunately, I see cases where the entrepreneur has to return the grant as some conditions were not fulfilled. In many cases, it is only an administrative mistake like sending the report to the ministry late or in too short a time for potential providers to give the proposal for services financed from the grant.
TPP: How can entrepreneurs make sure they actually get to drink the champagne?
LH: Using grants means keeping to some rules and conditions to which entrepreneurs normally do not keep. There are guidelines and other documents from grant providers describing these conditions; however, most entrepreneurs are far too busy to read all of them.
Many entrepreneurs attempt to correct mistakes ex post facto, when it may already be too late in some cases. In many cases, entrepreneurs say they didn't understand what exactly they should have done as the guidelines were not clear.
TPP: What kinds of grant opportunities lie ahead?
LH: The Czech Republic is extensively spending EU funds for the period 2007-13. At this time the government is also setting its priorities for the coming period 2014-20. The main priorities are supporting innovation, cooperation, competitiveness on the job market, ecological approaches, energy saving, using renewable sources and things like that.
Source : http://www.praguepost.com/business/11106-granting-business-growth-in-cr.html
Source : http://www.praguepost.com
Category : Small Business Grant
It takes money to make money, as the adage goes, and small businesses often have gaps in their cash flow that can put expenditures necessary for growing their business just out of reach. But in a country where small and midsize entrepreneurs represent 99 percent of all business owners and employ two-thirds of workers, they are not without support. Myriad grants are available to entrepreneurs registered in the Czech Republic, but unfortunately the bureaucracy involved can be quite overwhelming for the average small business owner. The Prague Post sat down with Luděk Hanáček, director of the Tax & Legal Department at Deloitte Czech Republic, to talk about the kinds of grants that are available and how to make the most of the money.
The Prague Post: What are some of the best grants available for small businesses now?
Luděk Hanáček: The most attractive cash grant for small and medium entrepreneurs is the grant for training employees and implementing processes for company development. This grant is attractive not only as a cash grant of up to 100 percent of total costs, but also because small and medium companies are growing quickly, and growth usually requires adaptability and the development of people, along with changes in processes.
Also, grants for marketing support are very likely to be used by small and midsize businesses. Granting up to 60 percent of costs for local or international marketing, Web presentation, attendance of fairs including the printing of marketing materials and other marketing costs can significantly help companies target new clients.
Both of these grants are focused on operating costs for small and midsize companies. There are also cash grants for investment costs related to purchasing new production machinery, reconstructing industrial buildings, creating new jobs in IT or outsourcing services.
TPP: Does the government show preference to particular types of companies in awarding grants?
LH: The majority of grants are provided for projects realized outside of the Prague region. It is due to the fact that the Prague region is so well developed compared with the rest of the Czech Republic that the seat of the entrepreneurial business may be in the region of Prague, but the realization of the project is more likely to be outside of this region.
TPP: Do you find that entrepreneurs in this country really take advantage of the grants available, or is there a lack of awareness about how they can get grant funding?
LH: If one looks at how many projects and entrepreneurs get grants, it seems like there is a great awareness about grant opportunities. From January 2007 to August 2011, more than 30,000 projects were granted EU funds, while thousands of other projects benefited from local funds.
What small and medium entrepreneurs need to see are real cases of how they can use grants. The texts of grant programs are sometimes very general, describing support for entrepreneurs' competitiveness or support for employees' adaptability. Entrepreneurs need to hear that they can get grants for printing marketing materials, stands at fairs, Web pages, language or manager training.
TPP: How can small businesses do more to maximize grants once they receive them?
LH: This is a very important question, and thank you for this. Many entrepreneurs think the decision of a ministry to give a grant is the end product. As we usually say to our clients at Deloitte: You can buy a bottle of champagne and put it in the fridge when you sign the contract with the ministry. After fulfilling all of the conditions and completing the final grant project report, you can open it and drink.
Unfortunately, I see cases where the entrepreneur has to return the grant as some conditions were not fulfilled. In many cases, it is only an administrative mistake like sending the report to the ministry late or in too short a time for potential providers to give the proposal for services financed from the grant.
TPP: How can entrepreneurs make sure they actually get to drink the champagne?
LH: Using grants means keeping to some rules and conditions to which entrepreneurs normally do not keep. There are guidelines and other documents from grant providers describing these conditions; however, most entrepreneurs are far too busy to read all of them.
Many entrepreneurs attempt to correct mistakes ex post facto, when it may already be too late in some cases. In many cases, entrepreneurs say they didn't understand what exactly they should have done as the guidelines were not clear.
TPP: What kinds of grant opportunities lie ahead?
LH: The Czech Republic is extensively spending EU funds for the period 2007-13. At this time the government is also setting its priorities for the coming period 2014-20. The main priorities are supporting innovation, cooperation, competitiveness on the job market, ecological approaches, energy saving, using renewable sources and things like that.
Source : http://www.praguepost.com/business/11106-granting-business-growth-in-cr.html
