What are start-up subsidies?

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

According to experts, the government of our country is trying to constantly support businesses, including start-up entrepreneurs.

So, relatively recently, a law was adopted, which stipulated such an issue as subsidies to start-up entrepreneurs. What does this document imply? Below we will consider the issue in as much detail as possible.

First of all, it should be noted that a start-up entrepreneur is usually understood as such a subject of a certain small business, the period of direct activity of which from the first day of state official registration to date does not exceed twelve months.

As a rule, support in the form of a subsidy to start-up entrepreneurs is provided by the regional government. So, annually, the regional budget should include financial resources to provide subsidies to start-up entrepreneurs in an effort to reimburse their direct costs of organizing their own business. It should be noted that all costs must initially be spelled out in the relevant business plan.

The state provides reciprocal financial support, while reimbursing no more than 70 percent (maximum 200,000 rubles) of the actual costs incurred without fail by bank transfer.

So start-up subsidies cover the following specific types of costs:

• rent of an object for doing business;
• cost of purchased additional tools and materials;
• production and subsequent placement of advertising;
• software cost;
• cost of reference books needed for doing business;
• copyright/patent registration;
• the cost of all services for obtaining a license.

To purchase a subsidy, start-up entrepreneurs will need to collect a certain regulated package of documents and submit it to the appropriate commission for consideration. The latter must consider the application and make its decision. As a rule, it is accepted by the head of administration. Then, in case of a positive verdict, between the administration of the locality and the entrepreneur himself, a subsidy agreement is concluded, which specifies force majeure circumstances, payment conditions, etc. in as much detail as possible

According to experts in this field, subsidies really help entrepreneurs in practice. It is thanks to this independent financial support that small businesses withtime becomes productive and cost-effective.

In general, the development of small business in Russia is currently undergoing dramatic changes. The state has modified its policy towards this sector. Now even a novice entrepreneur with a business plan and a great desire to work can achieve serious success in the market.