Tekes Funding
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- Duane Dickerson
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1 Tekes funding services for small and medium-sized enterprises
2 Did you know? More than 70 per cent of Tekes funfing for companies is allocated to development projects of small and medium-sized enterprises. Tekes funding services for small and medium-sized enterprises Do you want to see your company renew, develop and grow? Tekes can provide companies operating in Finland funding for projects involving the development of products, services, production methods, business concepts, competence or the organisation of work. Tekes encourages companies to network with other companies and expert and research organisations. The funding is targeted at development activities carried out in the form of projects and can cover part of the project's expenses. Costs arising from development activities of the company as well as external purchases and services are eligible to be covered by the funding. In addition Tekes offers funding for young innovative and growing companies for overall development of business. The purpose of the funding scheme is to substantially accelerate the growth and internationalisation of the most promising small businesses. The Growth Channel is a service and funding model intended for growth-oriented SMEs aiming at rapid growth and internationalisation. Funding and services SMEs 3
3 Why turn to Tekes? Where to start? Tekes shares the risks involved in development activities. With Tekes funding your company can implement the project on a larger scale, with more challenging targets and within a tighter time frame. Tekes experts provide you with assistance in evaluating and processing your idea. They have a broad view of the industry and business in their area of responsibility as well as an excellent cooperation network. Tekes staff also give advice on how to use other channels of funding and help open up opportunities for international cooperation. All contacts remain confidential. When planning a development project, you should contact Tekes at an early stage of the process. It is recommended to present the idea to an expert at Tekes or your local Centre for Economic Development, Transport and the Environment before drawing up the application. An application for funding is easy to fill in and submit in internet. The eservice includes all the information necessary. When filling in the application, please identify yourself as customer of our online services. The online service enables you to monitor the status of your funding application and the cumulative data of the funded project. It also includes features for the making of cost statements and other reporting. 5
4 For what purposes is funding available? Tekes can help you develop the following aspects of your business: Customers and markets Analysis of customers and markets Business model and strategy business model and strategy Partnerships and networks Identification of funding sources Products, services and production products and services production or service processes Research and development cooperation Management and personnel competence processes and organisation Tekes services available to you Funding Expertise Tekes and SHOK* programmes International cooperation Publications, events and news For growth companies Vigo Accelerators Growth company service for SMEs Funding for young innovative companies to support small businesses * Strategic Centres for Science, Technology and Innovation (SHOK) 6 7
5 How much funding is available? Tekes funding covers part of the project's expenses. Tekes contribution is determined based on the novelty of the project, market distance and the size of the company. The company must be able to show that it has the prerequisites to cover the self-funded proportion of the project. In addition to Tekes funding, no other public financing can be included in the project. Grants will typically be awarded to research and development projects that generate know-how that can be utilised in the long term. The project as such does not produce a directly marketable product. Instead, product development will be done on later phases utilising the results of the research project. one is produced later utilising the expertise developed in the project. The loan is intended especially for projects that produce a marketable product or service or create a new business concept. Tekes funding for SMEs consists of either a grant of 35 or 50 per cent or a loan of a maximum of 70 per cent of the total costs, depending on the nature of the project. The funding may also be granted as a combination of a loan and grant. The loan is a risk-bearing loan that is granted without a quarantee. The Centre for Economic Development, Transport and the Environment can grant preparatory funding for feasibility studies to prepare research and development work by SMEs. Maximum funding for SMEs (per cent of the expenses of the development project) Management s skills in international interaction Organisation of regeneration and growth Willingness to grow and plans for internationalisation Customers 3 Current status and capabilities How we evaluate our customers Customer profile for SMEs Product portfolio and possibilities to expand it Opportunities Customer insight Market potential Reforming operating models in the market Utilisation of partnerships and networks Evaluation supports our decision-making. We use the profile to identify strengths and development needs in cooperation with the customer. Nature of the project International joint projects and their preparation Challenging research and development projects Challenging development projects related to products, business operations, methods and services Productisation, pilots, demonstrations, test production and validation work organisations Grant % or 50 or and Loan % Further information: Funding and Services 8 9
6 Which costs are eligible? Acceptable costs include items such as salaries relating to project and the related indirect personnel costs and overheads, travel costs, materials and supplies costs and, under certain conditions, machinery and equipment costs as well as services purchased from external suppliers. Costs relating to the planning of production, marketing, internationalisation or internal training can be accepted as a part of the project. These costs precede the commercial stage and enhance the competence needed in the development of the business. Costs relating to preparation for market entry and verification of the functionality of development work may constitute only a part of the costs of a project funded by Tekes. The costs must be in accordance with the project plan. Only costs incurred on the day of submitting the application or later are deemed as eligible. However, purchases made based on a binding contract established prior to submitting the application are not acceptable as project costs. SME development project Competition in the food industry is intense. Today s consumers are interested in the healthiness, purity and high quality of food. The objective of a development project of a small family business focusing on specialised food products was to invest especially in additive-free products with future export potential. Tests on the product under development were carried out in collaboration with the Allergy and Asthma Federation of Finland, among others. As a result of the development work, the special products gained a shelf-life comparable to that of conventional products. Tekes funded the development of the first special product. After one product series had established its position, distribution channels for the next series opened up more easily. Currently, the sale of the special products accounts for more than 30 per cent of the company s turnover. Internationalisation study An SME development project funded by Tekes had just ended, resulting in a healthcare service concept with success potential in international markets. With Tekes funding, the company had comprehensive market surveys conducted in the UK and Germany. In addition, the company purchased legal studies from a law firm specialised in international business. Based on results obtained, the company is now continuing the research activities to find a suitable cooperation partner in the UK. Case studies Work organisation development project New, clearer working arrangements improved the result of a joinery shop by a fifth and efficiency by almost 30 per cent. There were also fewer sick leaves. The project was used to update operational processes. At the same time, job descriptions and responsibilities were clarified, and teams were given more freedom in terms of planning the work. Morning meetings between the management and team leaders and the introduction of new radio phones improved the flow of information. Unnecessary activities decreased, thanks to improved production control. The flow of workpieces in the production chain became smoother. In addition, improvements were made to the payment-by-results system and the work-time bank
7 Tekes the Finnish Funding Agency for Technology and Innovation tel (0) new clients +358 (0) registry Kyllikinportti, Länsi-Pasila, P.O. BOX 69 FI Helsinki Further information: web/enterprise-finland January 01 Print: Markprint Oy Images: istockphoto, Tekes
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