Good news for entrepreneurs eager to develop their businesses strategically and promote them abroad. We also find the initiative of state institutions to promote healthy business practices delightful.
In this regard, the Internationalization Program was launched in May 2017—a program aimed at SMEs looking to increase their number of customers beyond borders and seeking an integrated branding and promotion strategy.
Why is such a program needed?
Currently, only 25% of European SMEs export to other countries. Given this low share, the European Commission has prioritized stimulating European SMEs in international markets.
Romania joins the effort to support courageous entrepreneurs who wish to increase their number of customers abroad through funding programs. Like most European states, the Romanian government will assist the development of SMEs by granting aid from the state budget.
In this sense, an instrument for the individual promotion of Romanian companies on foreign markets has been designed. The program facilitates the promotion of SME products and services in foreign markets, stimulating business communication and partnerships, and preparing entrepreneurs in the field of promotion techniques for new markets.
The aid scheme was adopted through Government Decision no. 8/2017 and can be consulted in full here.
Market research: essential for an expanding business
This initiative is commendable in a context where managers make decisions without relying on market research, claiming they do so because they do not consider it necessary or lack the budget.
According to a study conducted internally by our team, 61% of the responding SMEs use market research as a source of information for decision-making. Of these, only 15% conduct consumer studies once every 3 months and 5% on competitors.
Most companies conduct market studies once a year (42% on consumers and 38% on competition) or once every six months (26% on consumers and 40% on competition).
Through research, we look closely at what is happening in the market: what consumer needs are, what competitors look like, and what opportunities and trends exist. Thus, the importance of market documentation is undeniable for an expanding business.
The Internationalization Program supports entrepreneurs with a budget of 10,000 RON intended for documentation and market research.
Who are the beneficiaries of the non-reimbursable funds?
The funds can be accessed by micro-enterprises and small and medium-sized enterprises (SMEs) whose business activity involves the production of goods and/or the provision of services, except for companies active in the fishing and agricultural sectors.
Small and medium-sized enterprises (SMEs) will be able to receive non-reimbursable state funds worth 50,000 RON (approximately 11,000 EUR) for business internationalization efforts, through participation in trade fairs abroad and the development of websites and promotional applications.
What amounts will be granted within the funding?
The Ministry for the Business Environment has launched a support program for the internationalization of Romanian economic operators that will take place between 2017-2020, with a budget of 71 million lei, as follows:
- in 2017 – 5 million lei;
- in 2018 – 20 million lei;
- in 2019 – 22 million lei,
- in 2020 – maximum 24 million lei.
Within the program, each beneficiary will have the possibility to obtain a maximum of 50,000 lei within a year, non-reimbursable financing covering 90% of the investment value, with the remaining 10% being covered by the investor.
Within the limit of 50,000 lei, acquisitions can be made for business internationalization, but respecting the ceilings per expenditure category. Thus, according to the annex of the Government Decision, we can speak of the following financing thresholds:
- 30,000 lei for individual participation in international fairs and exhibitions;
- 15,000 lei for participation fees for economic missions organized abroad;
- 10,000 lei for creating a website or mobile application, in Romanian and English;
- 10,0000 lei for documentation and market studies;
- 10,0000 lei for promotion and advertising with the obligation to participate in an international fair;
- 5,000 lei for creating visual identity;
- 5,000 lei for training courses in the field of product and service promotion techniques on new markets.
The decision is yours
If you have decided to exploit this opportunity and want to take the step of growing your business abroad, do not forget how important it is to know your potential customers, competitors, and even the new environment in which you intend to expand.
MKOR specialists can offer you the best advice in terms of business and increasing the number of customers. We are waiting for your message here to discuss more!
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