New supports
The real implementation of the programs and the distribution of funds are not always precisely identifiable by year, however, it is evident that the support of LIAA in stimulating the economy tends to increase. In terms of overall support, Jānis Kovalevskis, Deputy Director of LIAA’s Communication and Information Department, explains that funding for business support programs in 2022 was significantly higher than in 2021, both in connection with the lifting of restrictions imposed during Covid-19 and the initiation of new programs. For example, the demand for international marketing events was very low in 2021, as various exhibitions did not take place, but in 2022, with the resumption of various activities, the demand for support for the implementation of export activities increased significantly. In 2022, the implementation of a new business support program of the Norwegian financial instrument was also launched. Within the framework of the mentioned program, financial support last year reached less than 2.15 million euros, but this year it is expected to increase to 3.45 million euros.
Meanwhile, the amount of support has decreased in business incubator programs, which is largely explained by the adjustment of development plans of incubator companies in connection with the consequences of war, the increase in the prices of resources and services. The companies needed time to replan their activities and implement their plans already in 2023, the agency explains. Last year, the amount of funding for regional business incubators was 3.5 million euros compared to 4.76 million euros a year earlier, but this year this figure is expected to increase to just under 6.57 million euros. LIAA business incubators provide support for business start-up and development for natural persons and newly established merchants. The agency states that most of the currently active LIAA support programs will end this year, as well as new programs from the EU Renewal Fund and ERDF will be launched. At the moment, only the Digitization Voucher Program has been approved by the Cabinet of Ministers, with a budget of 40.5 million, and in this program entrepreneurs will be able to receive support of up to 100 thousand euros. Regarding this support section, J. Kovalevskis states that the program “Support for digitization of processes in commercial activity” is not yet open for applications. Tentatively, this program will be available to entrepreneurs at the end of February. Start-up companies also apply for support, which is rapidly increasing both in percentage and nominal terms. For example, in connection with attracting highly qualified employees. In 2021, less than 222.8 thousand euros were allocated for this purpose, last year it was almost 951 thousand, but this year’s forecast indicates more than 1.2 million euros.
Will increase competitiveness in foreign countries
LIAA states that support has grown most rapidly in the “International Competitiveness Promotion Program” for export and tourism marketing activities, which is related to the lifting of restrictions and increasing the intensity of support from 50 to 80%. On the other hand, speaking of specific numbers, in a program focused on promoting international competitiveness. the amount of funds allocated for export increased from 976 thousand in 2021 to more than six million euros last year, but this year the amount of support could reach eight million euros. At the same time, the information found on the agency’s website shows that in connection with the military conflict in Ukraine caused by the Russian Federation, the LIAA will not support the market reorientation activities applied by the companies, which are aimed at transactions in Russia and Belarus, in order to ensure the efficient and economically justified use of the financial resources of the European Structural Funds. Supported activities include participation in international developments and forums, adaptation of products and services to foreign markets, including trademark and design development, as well as other activities. Also, LIAA support can be obtained to certify that the relevant production plant, product, process, service meets the requirements set in the target markets, in accordance with regulatory enactments, the requirements of competent institutions or cooperation partners whose turnover exceeds 150 million euros per year. International competitiveness is also promoted in the tourism industry. Last year, almost 1.1 million euros were allocated for it compared to less than 232 thousand a year earlier. On the other hand, one and a half million euros could be allocated for raising the international competitiveness of tourism this year. Also in this program, support is directed to participation in international exhibitions, forums, contact exchanges, assessment of accommodation suitability, etc. activities.