EU Funds 2026: Calls More Favorable to Small and Medium Enterprises

Written by: Karla Žeželić, supervisor (EU funds) at Forvis Mazars

The year ahead in the world of European funds clearly profiles itself as a year of innovation. Although the European Union has been investing in research and development for decades, recent global changes, driven by a new paradigm of the American administration, have further sharpened the focus on its own capacities for knowledge, technology, and security.

Europe, faced with a changing geopolitical balance, has decided to return to its roots – the role of the Old Continent as the cradle of enlightenment, science, and technological progress. It is therefore not surprising that there is increasing investment in research and development (R&D), as well as a rise in allocations for dual-use technologies, which simultaneously strengthen economic development and security.

Interestingly, while Europe benefited from the comfort under the American shield, it could act almost pacifistically, but it quickly realized how thin and fragile that shield could be, so it decided to take responsibility for the security of its own citizens, as well as its own competitiveness, into its own hands.

Support for Bolder Steps

The year 2026 brings several calls covering almost the entire innovation cycle – from the initial idea and prototype to market application, scaling, and commercialization, and is particularly favorable to small and medium enterprises (SMEs).

In this context, calls such as Proof of Concept (PoC) stand out, which are intended for the early stages of development, when not all aspects are clearly shaped, but there is potential. This is often the moment when many good ideas get stuck. Entrepreneurs feel they have a good idea, but they are unsure whether it is worth investing limited financial resources into it or if they want to stay in the safe zone of everyday business.

This is precisely where the PoC calls come into full play because they take on part of the risk that would otherwise fall entirely on the entrepreneur. Previous call rules allowed for funds not to be returned if project activities were carried out according to plan, even when the innovative concept did not prove feasible. This opens up space for many entrepreneurs to take bolder steps.

Market Entry

What follows after successful testing and development is often an even greater challenge: market entry. Here, the call Innovations in S3 comes into play, which is aimed precisely at SMEs ready for the next step – the commercialization of innovative products and services in priority areas of smart specialization. This is a phase where innovation ceases to be a temporary project and becomes a long-term business tool for growth, export, and strengthening competitiveness.

However, it should be noted that this call is primarily focused on the innovation of internal processes and business organization because the European Union assumes that stable and efficient processes are the foundation of successful commercialization and strengthen sales channels and placement for future innovations.

Collaboration and Sustainability

One of the more interesting calls announced on Christmas Eve (read: the state never sleeps) is certainly the Integrator, which once again suggests that sustainable growth is increasingly less likely to occur in isolation, and partnerships and involvement in global value chains are becoming key tools for survival.

In fact, for SMEs, this is an opportunity to connect with other SMEs and larger systems (so-called integrators), innovate internal processes to increase the chances of successful commercialization; test and refine their (almost finished) products in a real environment and establish long-term supplier relationships with integrators and penetrate new markets.

The call aimed at the circular economy once again confirms that the European Commission has taken a clear stance on sustainability – sustainability is no longer an option but a final goal. It is becoming increasingly clear that sustainability must become an integral part of business models, production processes, and investment decisions.

For entrepreneurs, this means that green initiatives no longer need to justify themselves (although this type of call could also be administratively less demanding, but that is a topic for itself) and that the EU wants to encourage SMEs, as well as large enterprises, towards sustainable models of production and consumption by reducing pressure on the environment and increasing the efficiency of natural resource use through the development of environmentally friendly production processes and circular innovations.

Startups, Spinoffs, and Knowledge

A particularly interesting segment of the announced calls relates to startups and spinoffs of young researchers. This call clearly shows that scientific and research knowledge is increasingly recognized as the foundation of entrepreneurial growth.

For young researchers, this is an opportunity to transfer their ideas and results from the laboratory to the real sector, and for the economy, an opportunity to receive fresh, technologically advanced projects with high potential. The intensity of co-financing, which can reach up to one hundred percent, further emphasizes the intention to remove the financial barrier in the most sensitive phase of starting a business.

Regional Development

The impression is that for initiating industrial transition and strengthening regional economies, and consequently decentralization, it is essential to create a culture of innovation and establish hubs for the development of innovative products and services.

Calls such as SPIN STEP show that this process is no longer viewed abstractly, but very concretely – through product and service innovations within STEP technologies and thematic areas S3 that shape the future of regional economies. Overall, this approach aims not only to attract quality talent but also to provide them with concrete opportunities for professional and personal development, thereby revitalizing and stimulating economic growth beyond the ‘capitol’.

This is one of the rare announced calls in which large enterprises can also be applicants, but exclusively in collaboration with SMEs (a consortium of at least three entrepreneurs is required for the application, of which at least two must be SMEs), and given the regional character of the call, it is necessary that all partners are outside the City of Zagreb. Although at first glance these conditions may seem restrictive and discouraging, this is one of the most financially generous calls for the development of serious, technologically ambitious R&D projects at the regional level, with the possibility of securing up to three million euros in non-repayable funds.

Digitalization as a Tool

Digital vouchers and related calls remind us that digital transformation is not an end in itself, but a tool that should solve concrete problems – from process efficiency to business security. Successful projects in this area must clearly demonstrate why the digital solution is necessary and how it will improve business, not just what will be purchased or introduced.