Digital Transformation of Small and Medium Enterprises: Complete Guide.
The start of the new NSRF 2021-2027 is marked by the execution of three programs related to the digital transformation of small and medium-sized enterprises and will be completed in the coming period. The overall action "Digital Transformation of Small and Medium-sized Enterprises" has a budget of 300 million euros and is part of the new "Competitiveness" Program.
The funding application for participating businesses starts at 18,000 euros and reaches up to 1.2 million euros and the subsidy rate can reach up to 50%, while in some regions of the country it can reach 60%. The evaluation of funding applications will be done immediately and will be based on the order in which they are submitted until the Action's budget per region category is exhausted.
The first action of the program is aimed at small and medium-sized enterprises that have a low level of digital maturity and aims to develop basic digital infrastructure and applications, such as the creation of a website, the use of electronic tools for managing business processes and the use of cloud services.
The second action is aimed at businesses with a medium level of digital maturity and concerns the development of innovative digital solutions, such as the application of Artificial Intelligence technologies, the development of advanced software, the use of Big Data and the application of Internet of Things technologies.
Finally, the third action is aimed at businesses with a high level of digital maturity and aims to promote digital transition through the strengthening of services and the production of digital content, and the development of innovative business plans.
What is digital transformation of small and medium-sized businesses?;
The “Digital Transformation of Small and Medium-sized Enterprises” Program is one of the individual actions of the National Recovery and Resilience Plan Greece 2.0. It is funded by the European Union and its purpose is to contribute through financing to the digital maturation of small and medium-sized enterprises (SMEs) in Greece. The enterprises that will participate in the Program will manage to upgrade their commercial, administrative and production functions through a series of actions and support. Therefore, if there is an existing small and medium-sized enterprise, it may be eligible for the program.
Action first.
Medium, small and micro enterprises, which have not yet integrated significant information and telecommunications technologies (ICT) into their operations, can apply for funding. The budget of the funding application to be supported ranges from 18,000 euros to 30,000 euros. The duration of the investment does not exceed 9 months from the date of issuance of the Approval Decision. Expenditures may cover the following main categories:
- Equipment Expenses, which concern the purchase of digital equipment used to improve the functionality and upgrade the company's services.
- Software Expenses, which concern the purchase and installation of software to improve the management and upgrade of the company's services.
- Expenses for the Provision of Services related to the Digital Upgrade, such as:
- Software design and development services.
- Website design and development services.
- Installation and maintenance services for information technology and telecommunications networks and systems.
- Cloud infrastructure and solution provision and management services.
- Technical support and application maintenance services.
- Services for reviewing and updating the company's digital presence on various platforms and social networks.
- Training and education services for company personnel in the use of new technologies and applications.
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Second action: Advanced Digital Transformation of SMEs.
Small, medium and micro enterprises that aim to improve their competitiveness in international markets by enhancing their technological maturity can apply for financing for integrated investments in new technologies by meeting one of the following criteria: Creation of a new business establishment, expansion of an existing unit, diversification of production into new products or services, or fundamental change in the production process of an existing unit.
The budget of the selected investment projects ranges from 50,000 to 650,000 euros, while the longest investment completion period is 15 months from the date of issuance of the Inclusion Decision.
The selected expenses cover:
- The provision of advanced equipment for facility operations and personnel, including robotic production automation systems and upgrades to internal data transfer networks, offers greater efficiency and improved performance to the business.
- The procurement of modern software applications, such as resource and process management applications, customer and supply chain management applications, and artificial intelligence tools, can significantly improve work processes and increase business performance.
- Services related to digital upgrading can help the business achieve a competitive advantage, such as data security services, equipment and software maintenance and support services, as well as training services.
Third Action: Cutting-edge Digital Transformation of SMEs.
The aim of the funding application is to implement integrated investments in cutting-edge technologies or 4th industrial revolution solutions by medium, small and micro enterprises that have already integrated ICT into many of their functions. The total budget that can be supported ranges from 200,001 to 1,200,000 euros and the duration of the investment completion will not exceed 18 months from the date of issuance of the Inclusion Decision.
The criteria for investment projects must be met in terms of initial investment. Specifically, at least one of the following criteria must be met:
- Creation of a new business establishment.
- Expansion of the capacity of an existing unit.
- Diversification of a unit's production into products or services that have never been produced there.
- Fundamental change of the entire production process of an existing unit.
The total budget allowed to be financed for investment projects ranges from 200,001 to 1,200,000 euros. Furthermore, the duration of the investment completion will not exceed 18 months from the date of issuance of the Inclusion Decision.
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What is the application process for funding through the SME Digital Transformation program?;
Beneficiaries of the Program will need to follow a simple process to submit the application.
First of all, the application must be submitted by a representative of the business who legally holds the company's access codes (username & password) to the tax services of the AADE (taxisnet information system) and who must confirm the identity of the business. Then, and to start the process:
- The user goes to the secure environment of the General Secretariat for Public Sector Information Systems (GSIS) to register the corporate credentials in the user authentication service.
- Once the credential check is successful, the user enters the system for the first time and the process of creating the Grant Application begins.
- Finally, before completing and submitting the application, the user is also asked to declare and confirm a personal mobile phone number, which will also be the means of communication and sending vouchers in the event of approval of the Grant Application.
It is worth mentioning that applications for the Vouchers have already been completed and there is only time to redeem them until March 31, 2023. The detailed application schedule:
Category 1: (1-5, and 6-10 employees)
- Deadline for submitting funding applications: Wednesday, October 31, 2022
- Deadline for using Vouchers and making purchases: Wednesday, November 30, 2022
- End of transition period: Friday, December 30, 2022
- Completion of Program and all types of payments: Tuesday, January 31, 2023
Category 2: (11 to 250 employees)
- Deadline for submitting funding applications: Wednesday, October 31, 2022
- Deadline for using Vouchers and making purchases: Wednesday, March 31, 2023
- End of transition period: Friday, April 28, 2023
- Completion of Program and all types of payments: Wednesday, May 31, 2023
To redeem the Voucher and develop digital media for the evolution and growth of the business, one can consult the team. Fixit.gr. Creating a professional and successful e-shop is crucial in today's competitive business environment.
Epilogue.
In today's era of the digital revolution, small and medium-sized enterprises face significant challenges and opportunities for their digital transformation. However, the costs required for the development and upgrade of their infrastructure and the training of their staff are significant and can be offset by the NSRF subsidy for digital transformation.
The 2021-2027 NSRF subsidy is an opportunity for small and medium-sized enterprises to develop innovations and improve their competitiveness in the digital era. Through this subsidy, businesses can invest in the acquisition of new technologies, the development of new products and services, as well as in the training of their staff to meet new market demands.