Subsidies to Business
Subsidies is a perfect way to attract funds to the business during the crisis. Today, primarily, within the state programs subsidies are granted by the Ministry of Economic development, Monpromtorg, profile ministries (for example, Mintrans, Minselkhoz or Minkomsvyaz”). Besides, support to business in such a way is provided by the regional and local power authorities.
What subsidies can be provided on?
Subsidies to business are differentiated on use purposes. Generally, they can be structured as follows:
- a part of credit percent repayment,
- leasing payments part compensation,
- utility bills payment compensation,
- research and development carrying out,
- activity development.
Import substitution is the most crucial
A great number of subsidies granted today are aimed at import substitution, and today different branches are supported: from agriculture and food industry to shipbuilding or power.
A special place in this issue is taken by innovations – the sphere with the most perspective opportunities for scaling. Thus, within the Federal Target Program "Researches and Development" projects are granted 130 billion rubles a very good prospect for startups. In the middle of October, 2015 applications collecting started in the direction of researches support with the EU countries cooperation, for example.
A part of the state subsidies can be received during the whole year (depending on the schedule of order taking) in a declarative format. These subsidies are provided on a constant basis to the enterprises which correspond to the criteria of the considered support measure, and it is supported by all necessary documents. The enterprises need to prepare and certify documents and to bring them to profile department. The subsidies provided within the "Industry Development and Increase of Its Competitiveness" program of Minpromtorg can be an example.
The key feature of subsidies in principle is a gratuitousness of the received funds. Unlike business angels or venture funds, the state will not take the project share and will not begin "to get into management".
Subsidies is a care of those who needs them
In its turn, complexity of subsidies receiving consists in really big document flow – beginning with the stage of a suitable support measure search and finishing with the monthly or quarterly report on subsidies distribution and this data adding into accounting reports..
For this reason, subsidy competitions collect not so many applications. All the great number of documents which are not simple for collecting, the competitions criteria written in formal language are very clear to experts, but are not always clear to businessmen, and instead of numerous applications submission businessmen simply choose the solution of further work on the project instead of papers collecting and "bringing" of the project, a feasibility report or a business plan to the requirement of a certain competition which they could find.
For small, medium-sized and large business profile consultants cope with these purposes perfectly.