The instrument supports projects that are in the phase of proof-of-concept, up to the close-to market phase.

Micro, small and medium-size enterprises (MSMEs) from all business sectors are eligible to apply for funds under this instrument.

The following eligibility criteria apply to the applicants:

  • To be an enterprise established in accordance with the Trade Company Law and registered in the Central Registry of the Republic of Macedonia,
  • The period from the establishment of the applicant to the date of submission of the project proposal to the Fund shall not have exceeded 6 (six) years,
  • To be a micro, small or medium sized enterprise (up to 250 employees),
  • To be with majority Macedonian ownership structure (of 50,1% or more) 3 ,
  • To be in ownership of a natural person/s and/or micro, small or medium sized enterprises (with a Macedonian ownership structure of 50,1% or more), and/or a higher education, i.e. scientific-research institution (of up to 20% ownership in the applicant),
  • To not have annual revenues exceeding 1,000,000.00 (one million) EUR, according to the financial reports for the previous two fiscal years,
  • To not have capital connection (according to the Company Trade Law) to another enterprise where the total annual revenues of both enterprises exceeds 1,000,000.00 (one million) euros in the previous two fiscal years, except in case of a capital connection with a higher education, i.e. scientific-research institution,
  • To not have accumulated over 200,000.00 (two hundred thousand) EUR aid of minor importance in the last three fiscal years, including the amount requested from the Fund in accordance with the Law on State Aid and the Regulation on the Conditions and Procedures for Granting Aid of Minor importance (de minimis),
  • To not have accumulated over 100,000.00 (one hundred thousand) EUR aid of minor importancein a period of three years, including the amount requested from the Fund, if the enterprise is active in the road transport sector, in accordance with the Law on State Aid and the Regulation on the Conditions and Procedures for Granting Aid of Minor Importance (de minimis),
  • To not be in difficulty (an enterprise in difficulty is an enterprise that is unable to meet its obligations from its own resources or funds that it can obtain from its owner/ shareholders or creditors, to end losses which without outside intervention of providers of aid, will certainly lead to short-term and long-term cessation of operations of the enterprise),
  • To not be engaged in coal production.

Goals

The instrument is aimed at encouraging the innovation level in newly-established enterprises by providing the necessary support for research and development activities. The grant is expected to encourage a culture of risk taking and innovation, to provide support for the enterprises that aim to develop new or improved products, processes, and/or services, as well as to encourage the commercialization of research results obtained in higher education institutions, i.e. scientific-research institutions.

Duration

Projects under this instrument will have a 12 month duration with the possibility of extension for up to 6 months.

Evaluation criteria

  • Level of innovativeness
  • Project quality
  • Capacity of the project team
  • Market potential
  • Impact

Royalty payments

Following successful commercialization, the revenue (not only the profits) derived from the sales of the product/service and any subsequent products/services based on the technology developed within the project financed by the Fund, will become the basis for the royalty payments towards the Fund. All royalty payments shall be made at a rate of 5% (five percent) of the annual revenue generated from the sales of the product or the service derived from the project, up to a return of 120% (hundred and twenty percent) of the amount of financing received from the Fund or for a period of up to 5 (five) years after project completion, whichever condition is achieved first

For additional information, please refer to the Instrument Rulebook.

The instrument shall provide financing of up to 85% of the total budget of the project, in maximum amount of 30,000 euro.

The remaining 15% of the total project budget should be provided by the applicant.

„Innovation“ is an application of a new or a significantly improved product, technology, process or service, including significant improvements of technical characteristics, components and materials, built-in software, user orientation or other functional characteristics, or marketing methods or new organizational methods in operations, organization of work relations or relationships between a legal entity and environment

„Product innovation“ is the application of a new or significantly improved product, but which is not a change of aesthetic nature or only sales of innovated products, manufactured or developed by another natural person or legal entity.

„Process innovation“ is application of a new or significantly improved method of production, delivery, storage and transportation, including significant changes in the technique, equipment or software, but not solely organizational and managerial changes.

„Technology innovation“ is application of new or significantly improved technology.

„Organizational innovation“ is application of new or significant changes in management structure or methods, for the purpose of improving the application of knowledge, quality of products or services, or increasing the efficiency of business processes in the relevant legal entity or entry into new markets.

„Marketing innovation“ is application of new marketing methods, including significant changes in the product design, packaging, distribution and promotion of such product and charge thereof.

„Service innovation“ is application of a new or significantly improved service.

„Newly established micro, small and medium start-up trading company‘“ is a company established by one or more natural persons and/or legal entity(ies), from the establishing of which till the moment of its applying for funding from the budget of the Republic of Macedonia, a period of over six years has not elapsed.

„Newly established trading company spin-off“ is a trading company established by one or more natural persons who are either employed/engaged at or students of an institution of high education, i.e. scientific and research activity, and/or legal entities established by organizations performing scientific and research activities and/or by economic entities, for the purpose of commercial exploitation of the innovation, transferred to the newly established trading company.