The proposed new aid scheme offers additional possibilities for the Ministry of the Economy to accompany and support SMBs, in order to encourage the creation, development, conversion and redirection of businesses that are influential in the country's economic development. The new aid scheme would make SMBs more competitive on the national and European markets.
SMBs - a driving force in the Grand Duchy's economy
SMBs play a major role in economic growth and the creation of jobs. The SMB sector comprises nearly 32,000 businesses and currently employs nearly 210,000 people, which represents more than half the country's jobs.
At the press conference, Secretary of State of the Economy Francine Closener said: "For the next five years, we have earmarked a budget envelope of 89 million euros for supporting SMBs; this represents an increase of 27% compared with the period from 2012 to 2016. […] The new measures provide more support for investment and the continuous development of SMBs in the Grand Duchy, thereby contributing to implementation of policy in favour of the active diversification of the country's economic fabric."
The current aid measures to be adjusted by the proposed legislation are:
- aid for investment in favour of SMBs;
- aid for consultancy services in favour of SMBs;
- aid for the participation of SMBs at trade fairs.
These four new measures are in addition to the aid that already exists:
- aid in covering the cost of cooperation borne by SMBs participating in cooperation projects on a European scale;
- aid in favour of young businesses;
- aid intended to make good damage caused by certain natural disasters;
- aid regarding the financing of risks.
By granting a total of 70 million euros in aid to SMBs over the period from 2012 to 2016, the Ministry of the Economy mobilised investments amounting to 665 million euros.
(Source: Press release from the Ministry of the Economy)