Maras: The State Will Support Competitive Products, Not Loss-Makers

Non-repayable grants in the competition for the measure “Strengthening the Business Competitiveness of Entrepreneurs and Craftsmen”, as part of the “Entrepreneurial Impulse” program, have been awarded for 103 projects, totaling 71.5 million kuna, reported today at a press conference by the Minister of Entrepreneurship and Crafts, Gordan Maras.

A total of 414 applications were submitted for the competition that closed on July 22.

The lowest amount of granted support is 250.7 thousand kuna, while the highest is 1.4 million kuna. The average amount is 701 thousand kuna. The share of entrepreneurs in financing the projects for which grants were approved is between 50 and 85 percent.

Maras expects that the implementation of the projects for which grants were approved will result in 1,001 new jobs by the end of 2014, with 519 in this year and 482 in the next year.

Among the expected effects is an increase in the income of grant recipients by 13.8 percent, and the grants are expected to influence the creation of 83 new products, services, or business processes, as well as an increase in exports among 82 recipients.

Maras emphasizes that the “Entrepreneurial Impulse” is an example of the Government’s policy of abandoning grants whose value was measured in billions of kuna, which did not yield results.

“This is also a message to those who are seeking grants these days. If you have a competitive product, the state will help you, not for production that generates losses,” said Maras.

In terms of the number of grants, the leading sector is metal production and metal products with 19 grants, totaling 12.9 million kuna.

Following is electronics, devices, and equipment production with 18 grants valued at 11.8 million kuna, while the wood industry received 15 grants worth a total of 11.1 million kuna.

For projects in the production of rubber and plastic products, 11 grants were approved, totaling 8.5 million kuna, and 10 grants were allocated to the food industry, with a value of 6.7 million kuna.

The most grants went to entrepreneurs and craftsmen in the city of Zagreb, Zagreb County, Međimurje County, and Virovitica-Podravina County, while no applications were received from three counties: Dubrovnik-Neretva County, Lika-Senj County, and Požega-Slavonia County.

Minister Maras believes that the supportive entrepreneurial institutions in those counties have failed, especially the branches of the Croatian Crafts Chamber and the Croatian Chamber of Economy.

According to him, the chambers are lagging behind in activities to support entrepreneurs and craftsmen, who benefit more from regional development agencies and consultants.

Therefore, he emphasizes, it might be worth considering opening up the possibility for entrepreneurs and craftsmen to choose whether they want to finance the chambers or other organizations.

Today, contracts for the disbursement of funds were also signed with representatives of ten companies that received funds from the “Entrepreneurial Impulse”. Among them are the metal company Midi, the pharmaceutical packaging manufacturer Piramida, Uniweld Machines, the software company Business Intelligence, etc.