Access to finance

In Slovakia, there is a wide range of programmes, funds and loans available for the support of enterprise, which may be divided into public sector financial instruments and private sector financial instruments.

Public sector financial instruments - the range of such instruments and the volume of finance provided by them has gradually increased since the accession of the Slovak Republic to the EU. For the 2007-2013 programming period, Slovakia will be able to take full advantage of the possibility to make use of EU funds. The greatest contribution to the increase in available finance has come from structural funds (European Regional Development Fund and the European Social Fund) and the Cohesion Fund.

As an EU Member State, Slovakia also plays a role in Community Initiatives, the aim of which is to assist the mobility of students, life-long learning, innovation, culture, the media, tax policy, growth in competitiveness and other areas. After receipt of financial support from public finances, public procurement procedures must be used when awarding public contracts.

Benefiting from public contracts — Slovakia

Private sector financial instruments - a wide range of enterprise credits, loans, etc. are available for the support of enterprise. Compared with the majority of public sector financial instruments, the majority of private sector financial instruments are applied in a repayable format.

Funding from public sources

Structural funds

For the 2007-2013 programming period, a total of 11 operational programmes are available from the structural funds, of which the Operational Programme 'Competitiveness and Economic Growth' (CaEG) is directly aimed at the support and development of enterprise. Further operational programmes complement CaEG and indirectly support the development of enterprise, for example through education and research and development.

National strategic reference framework - operational programmes [SK]

The Operational Programmes for Agricultural and Rural Development and Fisheries are aimed at entrepreneurs active in the field of agriculture and pisciculture. An outline of the operational programmes together with links to their administrative and mediatory bodies can be found at:

Agricultural Payment Agency (Pôdohospodárska platobná agentúra) - forms of assistance [SK]

Competing through innovation — European Union

Setting up a new business — Slovakia

Supranational operational programmes and bilateral co-operation programmes

In contrast to the aforementioned operational programmes, one of the conditions set by the supranational and bilateral programmes is the creation of a supranational or bilateral partnership. Supranational programmes which, either directly or through the provision of assistance for the support of the development of innovation, give aid to enterprise and which territorially pertain to Slovakia, include the following operational programmes: INTERREG IIIC, INTERREG IVC, Central Europe, South East Europe. More information on bilateral cooperation programmes and the INTERREG IIIC, and INTERREG IVC operational programmes can be found in the links on the Ministry of Economy of the Slovak Republic in the European Union section.

Operational Programme Central Europe and Operational Programme South East Europe

Keeping to environmental rules — Slovakia

Community initiatives

The community initiative is a European Union instrument used for deepening cooperation and resolving the common problems of EU Member States in relation to particular EU policies. For the programming period 2007-2013, 21 community initiatives are available, of which the 2nd Competitiveness and Innovation Framework Programme and the 7th Framework Programme for Research and Development are considered to be key with regard to the support and development of enterprise.

Conducting research — Slovakia

State assistance

The regulations governing State assistance for the support of enterprise is set out in the Act passed on 1st January 2008 on investment aid, pursuant to which investment aid for the support of initial investment and the creation of jobs is provided in the following forms:

• subsidies for the acquisition of long-term tangible assets and long-term intangible assets;
• income tax relief pursuant to special regulations; contributions for newly-created jobs;
• transfer of non-movable assets or the exchange of a non-movable asset at a price lower than the general asset value.

Act on Investment Aid [SK]

Slovak Investment and Trade Development Agency - rules for State aid provision

In the Government Department of Agriculture, State assistance is provided in the form of grants and subsidised goods and services. These are mainly support measures for small and medium enterprises. The legal framework for the provision of State assistance is set down in the Slovak Governmental decree no. 369/2007 Coll. on Certain Agricultural Support Measures.

Agricultural payment agency - State aid [SK]

Other

In addition to the aforementioned options, the public sector offers a range of other instruments for the support of enterprise development, such as for example loans at improved rates under the Micro-loan Programme or the use of the services of an incubator during the initial stages of a business start-up, and similar schemes.

Setting up a new business — Slovakia

Private investments

In addition to public sector financial support, a wide range of private sector instruments is available to entrepreneurs.

Slovak Guarantee and Development Bank (Slovenská záručná a rozvojová banka), a.s. provides various guarantee, contributory and credit programmes for entrepreneurs. It also has a great deal of experience in the provision of financial support related to EU funds, especially in the form of long-term investment loans. The SGDB is a member of the European NEFI organisation (Network of European Financial Institutions for SMEs).

Slovak Guarantee and Development Bank

In addition to the services of the Slovak Guarantee and Development Bank, entrepreneurs can choose from a wide range of banking products from other banks in order to finance their business activities.

An alternative to bank financing is the use of risk capital which is where an investor, usually by increasing basic capital, or in combination with a loan, provides a company with the necessary financial resources. In doing so, he is granted the temporary status of partner. The fund of funds ensures the functioning of all risk capital funds using different types of investment strategies.

Fund of funds - risk capital funds

Source: European Commission