Small and medium-sized enterprises (SMEs) are the backbone of the Valencian economy, and their role has not stopped growing in recent decades. According to data from the latest report ‘Business structure and dynamics in Spain’ published by the Ministry of Industry, Commerce and Tourism, there are approximately 375,000 SMEs in the Valencian Community, which represent 90% of the Valencian productive fabric. The report indicates that the Valencian Community is the fourth autonomous community with the highest number of SMEs, only surpassed by Catalonia (633,177), the Community of Madrid (557,138) and Andalusia (545,047). 59.1% of Valencian SMEs carry out their activity in the services sector (22.1% in commerce), 6.4% are industrial companies and 12.3% in the construction sector.
SMEs firmly contribute to economic growth and job creation in the Valencian Community. Despite this, small Valencian organizations, sometimes one-person, are going through a difficult situation, due to inflation, the high costs they have to face on a day-to-day basis, technological changes and difficulties in accessing bank financing. In the current context, aid and subsidies for SMEs are more important than ever so that Valencian entrepreneurs can start up their businesses and that the most consolidated companies can gain momentum. Luckily, Valencian SMEs can benefit from different aids, such as those offered by the Valencian Institute of Business Competitiveness (IVACE).
As usual every year, the IVACE, a public entity dependent on the Ministry of Sustainable Economy, Productive Sectors, Commerce and Labor, has launched different aid programs in the field of industrial research and experimental development, business innovation, digitization of SMEs, as well as the creation and growth of innovative companies. The objective of the IVACE aid is improve the competitiveness of small Valencian organizations so that they can achieve better results and boost their growth in these times of economic uncertainty. Next, we review the IVACE aid for SMEs in 2023.
SME Innovation Program (INNOVA-CV) 2023
The objective of the INNOVA-CV 2023 aid from IVACE is help finance innovative projects that result in greater competitiveness of companies and that can obtain tangible business results at the end of the project’s execution period. All SMEs with their registered office and production establishment located in the Valencian Community at the time of the application can benefit from these aids. Only one project per company can be submitted and it must meet the following requirements:
- Eligible budget of the project equal to or greater than 15,000 euros.
- The projects must start after January 1, 2023, and must not have been materially completed or fully executed before the application is submitted.
- The results of the projects must have a tangible impact in the Valencian Community.
- The costs associated with the project may not simultaneously receive aid within the framework of this call and others from this or another administration or public entity.
- The project must be framed in one of the specialization environments contemplated for the IVACE in the field of R&D and business innovation of the Smart Specialization Strategy of the Valencian Community (S3 CV).
Cooperation R&D Program (PIDCOP-CV) 2023
The purpose of the IVACE PIDCOP-CV 2023 aid program is economically support and launch industrial research or experimental development projects in cooperation between several companies. Small Valencian organizations interested in this type of aid must form a consortium, accredited through an agreement between the parties, with the aim of executing a common project. SME projects, which must have a registered office and production establishment located in the Valencian Community, must meet the following requirements:
- Eligible budget of the project greater than 80,000 euros and less than 500,000 euros.
- The projects must start after the date of submission of the aid application, so that the call for aid produces an incentive effect for the execution of the projects.
- The results of the projects must have a tangible impact in the Valencian Community.
- The projects must develop knowledge in order to increase competitiveness, the differentiation of products or services in the markets and the generation of quality employment.
- The costs associated with the project may not simultaneously receive aid within the framework of this call and others from this or another administration or public entity.
- The project will mean a new development for the applicant company and, therefore, not carried out previously, in whole or in part, by it or by any other company linked or contracted to carry out the project.
- It will be an essential condition to receive the aid to maintain the requirements that for the validity of the consortium are required in the Beneficiary Companies section of the annex to the call corresponding to this program.
It is a non-refundable subsidy that finances up to 50% of the projects of medium-sized companies and up to 60% of the projects of small companies.
Aid for SME R&D projects (PIDI-CV) 2023
The IVACE PIDI CV aid program pursues help finance R&D projects by SMEs, that have at least three workers or workers. SME projects must meet the following requirements:
- Eligible budget of the project greater than 30,000 euros and less than 175,000 euros.
- The projects must start after the date of submission of the aid application, so that the call for aid produces an incentive effect for the execution of the projects.
- The results of the projects must have a tangible impact in the Valencian Community.
- The projects must develop knowledge in order to increase competitiveness, the differentiation of products or services in the markets and the generation of quality employment.
- The costs associated with the project may not simultaneously receive aid within the framework of this call and others from this or another administration or public entity.
- The project will mean a new development for the applicant company and, therefore, not carried out previously, in whole or in part, by the company or by any other linked or contracted to carry out the project.
They consist of non-refundable grants and their objective is to finance up to 45% of the eligible costs of the project for small companies, and up to 35% in the case of medium-sized companies.
SME Digitization Program (DIGITALIZA-CV) 2023
The IVACE Digitaliza CV 2023 grants are one of the most successful calls published by the public entity of the Generalitat Valenciana. This aid program aims to increase the technological level of industrial SMEs and services to industry through the implementation of Electronic, Information and Communication Technologies (TEICs). Each company, as long as it has a registered office and production establishment located in the Valencian Community at the time of the application, can submit only one project when applying for subsidies for SME digitization projects in 2023. The project must meet the following requirements:
- Eligible budget from €15,000.
- The projects must start as of January 1, 2023 and must not have been materially completed or fully executed before the application is submitted.
- The results of the projects must have a tangible impact in the Valencian Community.
It is a non-refundable grant that finances up to 30% of the eligible costs of the project, regardless of company size. In any case, the amount cannot exceed 100,000 euros.
