Scheme for the enhancement of Youth Entrepreneurship 

 

(I) Purpose of the Scheme

The Scheme’s purpose is to develop, support and promote the work of entrepreneurs aged between 20 and 40 years who wish to operate a business in any sector of the economy.

(II) Subsidy amount

The programme offers a subsidy amounting to 50% of the approved expenditure, up to a subsidy limit of 70,000 euros for companies in the manufacturing sector and 50,000 euros for companies in the service sector. The limits for the expenditure that can be approved for the 50% subsidy are detailed below.

No. Expenditure Category Limits of eligible expenses in each category
Manufacturing E-commerce – Services – Tourism
1. (a) Equipment

(b) Special installations

(c) Buildings – Development of spaces

€115,000 €80,000
2. Training €3,000 €3,000
3. Promotion €5,000 €5,000
4. Other Expenditure €5,000 €5,000
5. Working capital €12,000 €7,000
  MAXIMUM EXPENDITURE COVERED €140,000 €100,000
MAXIMUM SUBSIDY €70,000 €50,000

 

Applications from companies making a proposal for the use of new technology and of innovative production and promotion methods for their goods and services (e.g. e-commerce) are favored.

The scheme will be applied from 2014 to 2020.

(ΙΙΙ) Programme eligibility – Participation requirements

The following may participate in the programme:

  1. Young people who have been legal permanent residents in the regions controlled by the State for at least six (6) months prior to submitting their application.
  2. The applicants must be between 20 and 40 years old.
  3. They must be unemployed or salaried employees when their proposal is submitted.
  4. They must not have had any entrepreneurial activity for at least six (6) months prior to submitting their proposal.

(IV) How the subsidy is paid

Public Financing can be provided in three (3) stages, according to the following table.

Project implementation stages Requirement Public financing
1st STAGE Signing the Public Financing Agreement Advance payment covering up to 40% of the approved state support
2nd STAGE After the implementation and verification of expenses over 30% and 60% of the project. A subsidy corresponding to the verified eligible expenditure, after deducting any advance payment and provided that the eligible expenditure exceeds the minimum investment amount of €10,000
3rd STAGE After the project’s physical and financial subject-matter has been completed and verified, its objectives have been met and the company has started operating A subsidy for the remaining eligible expenditure which has been made and verified

(V) Feasibility Study

Presenting a feasibility study is not necessary in order to apply. It is, however, recommended because it can provide evidence of the company’s sustainability.  One-third of the grade awarded to each application relates to the company’s sustainability.

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