Access to finance
10 November 2009by Ina Dimireva -- last modified 11 November 2009
An overview of the sources of finance available to SMEs in Portugal.
New businesses
To support the establishment of a new business, IAPMEI created the Programme FINICIA, which facilitates access to financing and offers help with obtaining risk capital or guaranteed credit.
At the same time, the Professional Job and Training Institute (IEFP) has a programme to support Local Employment Initiatives which allows some categories of people to open their own business, with financing assured for the first two years of operations.
Support to Local Employment Initiatives [PT]
Contracting personnel or programmes of professional training
The IEFP also provides various financing programmes for contracting personnel or programmes of professional training. Worth mentioning is the Programme to Stimulate Employment Offers.
Support and incentives for contracting and professional training [PT]
General page on contracting and job maintenance [PT]
Merger operations
The Business Gateway provides information on mergers which might be entitled to tax benefits, through the Directorate-General for Economic Activities (DGAE).
Information on tax benefits granted to mergers and necessary procedures [PT]
Operations of internationalisation and modernisation
For operations related to internationalisation, various financial instruments have been developed: the AICEP proposes the possible attribution of tax benefits and the Fund for Internationalisation of Portuguese Companies, a public limited company established by the Portuguese government and some financial institutions wishing to participate in internationalisation projects and to assume the risks associated with such participation.
Tax Benefits to Internationalisation [PT]
Fund for Internationalisation of Portuguese Companies [PT]
The Business Gateway puts forward the Incentive System for Business Modernisation (SIME - International), which is a program that aims to support projects for micro and small enterprises with prospects of trading in goods and services internationally. Invitations to tender are called periodically within the scope of the Incentive Programme for Economic Modernisation (PRIME).
PRIME has another line of financing, measure 8 - programme of Support to the Internationalisation of the Economy, which is specifically focussed on market exploration (from attending fairs and events). However, this support is considered more for associations of companies - sectoral, regional or national.
Support to the Internationalisation of the Economy [PT]
AICEP supports companies who develop projects of direct foreign investment for values greater than 250 000 euros. These can apply for tax benefits.
Within the scope of the National Strategic Reference Framework (NSRF), a programme SME Qualification - System of Incentives to the Qualification and Internationalisation of SME was created to support various investment projects including internationalisation.
SME Qualification - System of Incentives to the Qualification and Internationalisation of SME [PT]
Innovation, research and development
The establishment of technology based companies is supported by the Initiative NEOTEC of the Agency for Innovation.
NEOTEC - Establishment of technology based companies [PT]
In 2008 a Fund to Support Financing to Innovation (FINOVA) was established and was presented as a new fund to support small and medium enterprises, aiming at reinforcing the instruments of financing concerning projects with an innovation component.
Fund to Support Financing to Innovation [PT]
Within the scope of the National Strategic Reference Network (NSRN), the SI Innovation Measure - Innovation Incentive System was created to support projects of investment for productive innovation via the production of new goods, services and processes.
SI Innovation - Innovation Incentive System [PT]
Also within the scope of the Incentive Programme for Economic Modernisation (PRIME), a system of tax benefits for the entrepreneurs who promote Research and Development was created.
SIFIDE - Tax Incentives to R&D [PT]
Frequently Asked Questions [PT]
Industrial research activities and/or pre-competition development are also supported by the Incentive System for Business Modernisation - R&TD, aiming at the reinforcement of productivity and competitiveness.
The Foundation for Science and Technology (FCT) is the institution that manages the grants programme to finance investigation projects.
Investigation and Development Projects from the Foundation for Science and Technology [PT]
Financial Difficulties
Companies going through financial difficulties may resort to the Incentives System for Business Restructuring and Modernisation (SIRME) of IAPMEI, which tries to integrate these companies into larger structures.
Those businesses already in a legal situation to ask for insolvency may activate IAPMEI's Out of Court Conciliation Procedure (PEC), in order to negotiate with part of the creditors, by sending a petition letter accompanied with a five year Business Plan.
Out of Court Conciliation Procedure [PT]
Personalised help and advice
The Enterprise Europe Network provides businesses with information and advice through its local partners.
Enterprise Europe Network – contact points – Portugal
Source: European Commission
Advertisement