H2020’s SME instrument benefits small businesses

Horizon 2020 is offering huge benefits to tech and manufacturing SMEs, including €3bn ring-fenced solely for projects put forward by SMEs. This makes up 7% of the €47bn Horizon 2020 industry-focused budget covering the next six years.

Now that the first calls for projects have been opened, SMEs across Europe will now compete to take their share of the money, each being able to receive between €1 and €3m in addition to €50,000 lump sum for an initial market viability assessment. Products can then be taken to the European market.

Paul Tranter, CEO of Pera Technology, which is helping companies to develop products and projects in order to gain EU funding, told Engineering and Technology Magazine: “The new dedicated SME instrument, part of Horizon 2020, is designed to encourage SMEs and help them to overcome obstacles, such as the lack of financial or technical resources, in order to be able to develop their products and get them into the market.”

SMEs are now able to apply alone for funding, without being forced to enter larger consortiums. They are also entitled to receive expert advice and free coaching.

Tranter concluded: “The European Commission has rightly identified SMEs as the key engine for economic growth. There are 20 million SME businesses in the EU and 4.8 million in the UK alone; growing each of these businesses by even just one or two employees will have a significant impact on the economy.”

Assistance to SMEs is provided under the Industrial Leadership pillar.