In this post, we'll talk about the different institutions that offer internationalization support for SMEs, so you're aware of the opportunities available to you to grow your business!
Internationalization aid for SMEs is a real possibility!
Currently, there are organizations that offer support for the internationalization of SMEs, so the international projection of this type of company is becoming an increasingly real possibility.
If you have an SME, Startup or entrepreneurship, which has developed satisfactorily in your sector, and you want to opt for any of the aid and subsidies offered by these organizations to help it grow, you should take note.
The internationalization process of a company occurs organically, when the conquest of local markets and the need for expansion push the owners to turn their eyes towards foreign markets.
It is fortunate for SMEs that there are organizations, both public and private, that have established economic aid and subsidy programs to facilitate the internationalization process of small and medium-sized enterprises.
Internationalization grants for SMEs: where to go?
The internationalization process is one of the objectives desired by SMEs, in principle, because it offers them great advantages, such as the strengthening of their brand.
In the current global climate of uncertainty, it is vitally important for SMEs to know where they can go to request internationalization support.
In this article, we will mention the most representative entities that offer internationalization support for SMEs in their programs :
Spanish Institute of Foreign Trade ICEX
The Spanish Institute of Foreign Trade has been, throughout its history, the reference entity for the internationalization of Spanish companies.
Within its multiple aid and subsidy programs, we find the ICEX NEXT, whose main objective is to provide advice to SMEs in the structuring and design of a business plan abroad.
In addition to the technical advice they provide, ICEX also offers them financing of up to 50% of the costs of the process, up to a total of 13.270 euros per company.
They also have another program called ICEX CONSOLIDA2, which provides support to SMEs in their actions, concentrated in three countries, for each company.
This subsidy can reach 50% of the expenses of the process, up to the amount of 20.000 euros per company.
The requirements to apply for ICEX internationalization grants are as follows:
- Being an SME
- Have a product or service that can be marketed abroad.
- Have your own brand, recognized in the local market.
- Not be a subsidiary of a foreign company.
- Have a turnover in euros, which exceeds the figure of 100.000. This requirement does not apply to startups that already have a marketed product or service.
- Have the logistics infrastructure to address its international growth. Specifically, they must have a person in charge of the project and their own brand website.
- Not having previously participated in the ICEX PIPE or ICEX NEXT initiation programs.
- Being solvent with the ICEX
Chamber of Commerce of Spain
The Spanish Chamber of Commerce currently has three subsidy programs aimed at promoting the internationalization of companies.
These programs, XPANDE, XPANDE DIGITAL and PIP, have the financial backing of the European Regional Development Fund (ERDF).
XPANDE
XPANDE is a one-year program that provides advice on strategic planning for Spanish SMEs that wish to start in the field of export, or access a specific international market.
This program can also be extended to those SMEs that are already internationalized and seek to consolidate themselves in foreign markets.
In its first phase, XPANDE offers training in the areas of market selection, market access, communication and marketing, economics and finance.
Once the first phase is completed, in the Second Phase , economic subsidies are processed, covering 80% of the total expenses of the process, up to a maximum sum of 9.000 euros (15.000 euros for SMEs in Andalusia).
DIGITAL XPAND
This program is directed, in its entirety, to provide help to improve the positioning and digital marketing strategies of SMEs that have entered international markets.
Like the XPANDE program, XPANDE DIGITAL is divided into two stages. The first stage comprises training and advice on designing a digital marketing plan for the company.
In its Second Stage , the allocation of economic subsidies is carried out, representing 80% of the total expenses of the process, up to a maximum sum of 4.000 euros.
PIP International Promotion Program
The International Promotion Program (PIP), developed by the Spanish Chamber of Commerce, is aimed at all those SMEs that wish to start their export process.
Although it does not have economic financing, the PIP plan offers, free of charge, the organization of fairs, business meetings and other promotion activities for companies, aimed at improving their international image.
Center for Technological and Industrial Development (CDTI)
The Centre for Industrial Technological Development has developed a program called INNOGLOBAL , which aims at international technological cooperation among Spanish business organizations located in the Innovation, Development and Research sector.
These internationalization grants are aimed at promoting international industrial research or experimental development projects.
In 2018 alone , INNOGLOBAL offered €400.000 in subsidies to companies, provided that this amount did not exceed 50% of the total pre-approved financeable budget.
European Union
The European Union's internationalization aid is also aimed at companies in the Innovation, Development and Research sector.
Through its SME INSTRUMENT sub-program , encompassed within the framework of the European Horizon 2020 program , it has a general subsidy exceeding 76.800 billion euros.
It is divided into three phases:
- Phase I: Concept and feasibility evaluation, with a subsidy of 50.000 euros for the development of the business plan and the potential of the new idea.
- Phase II: Demonstration and commercial replication, which finances the research, development and testing processes.
- Phase III: International Marketing. In this phase, the company does not receive direct economic subsidies, but training, coaching and advice.
Autonomous Communities (CCAA)
The Autonomous Communities also offer internationalization aid and economic incentives for SMEs in their localities.
In the Ministry of Industry, Commerce and Tourism; They can provide you with the necessary advice to access the CCAA of your productive sector.
Other organizations that offer internationalization aid to SMEs
There are other organizations that also provide institutional financial support to small and medium-sized enterprises through their internationalization aid programs.
- Official Credit Institute: The ICO has an internationalization catalog, made up of financing lines for companies, up to an amount of 12,5 million euros, per company.
- National Innovation Company (ENISA): Through your program ENISA Young Entrepreneurs, grants economic subsidies to newly established SMEs (up to 24 months after being founded), with entrepreneurs under 40 years of age, and for amounts up to 75.000 euros.
- National Innovation Company (ENISA): In another program called ENISA Entrepreneurs, receives financing requests for internationalization projects of up to 300.000 euros, with a maximum return period of seven years.
- Spanish Development Financing Company (COFIDES): It also grants financing to Spanish companies that operate abroad.
- Also, on a smaller scale, the Export Credit Insurance Company (CESCE), and the Spanish Guarantee Company (CERSA), offer internationalization aid to SMEs in Spain.
Internationalization aid for SMEs is a fundamental economic support, both for businesses and for entrepreneurs.
Public aid, normally granted by the different Autonomous Communities, also constitutes an invaluable resource in the internationalization process of a company.
Some private companies also plan to make financial contributions to SMEs, startups or enterprises that wish to start the process of international marketing of their products and services.
Whichever option you decide to follow, having the necessary tools and knowledge to be able to apply for one of the internationalization grants , which we have already mentioned, can result in great benefits for your business.
If you want to learn about free trade zones , be sure to read this fascinating article, where we discuss the topic in detail.
And to finish, we invite you to watch the following video that will give you more information about the internationalization of Spanish companies.