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5.3.3.1.2 SUPPORT FOR THE DEVELOPMENT AND CREATION OF MICRO-ENTERPRISES (Tier 3)
Article 52 (a)(ii)
Measure Code (312)
Rationale for Intervention
The Strategic Plan emphasises the challenges in creating the right conditions for rural businesses and communities to flourish, particularly in many remoter areas. Axis 3 of the Plan includes a strategic goal to support a progressive rural economy and business community based on a culture of entrepreneurship. This measure will help to promote entrepreneurship and develop the economic structure in rural areas, thus contributing to the overarching Lisbon strategy encourage the creation of employment opportunities. The need to respond to market demand is also likely to mean that successful projects will provide benefits, improve access to or widen the available range of services and facilities in the local community as well as the wider population.
By sharing the cost of the capital investments required to set up or develop small scale businesses outwith agriculture we can pump-prime individual entrepreneurs to create, extend or diversify their sources of income.
Objectives of the measure
This measure has two objectives:
- to encourage land managers (other than farmers) to diversify or add value to their existing land based enterprises to complement or supplement their income from traditional land management activities, with the intention of keeping the family within the rural community at the same time as reducing the household's on-going reliance on public sector subsidies.
- to encourage other entrepreneurs to set up or develop businesses which will contribute to the vibrancy of the rural community and/or meet market demand for the provision of facilities and services in rural areas.
Scope and actions
Potential beneficiaries can receive support for the set up or expansion of any non-agricultural enterprise where it can be shown that there is a demonstrable market for the proposed product or service and that the potential beneficiary has or can acquire the skills and resources to provide these on a commercial basis.
Support will be provided under this measure for non-agricultural land managers and others to undertake the same types of diversified activities as funded under the 'non agricultural diversification measure' for farmers and their families. These include the categories listed below, although it should be recognised that this is not an exhaustive list but is for illustrative purposes:
- Provision of leisure, recreation and sporting facilities
- Retailing of processed agricultural products
- Residential letting
- Provision of rural services.
- Provision & upgrading of tourist services or facilities
Definition of beneficiaries
Entrepreneurs (including non-agricultural land managers) setting up or expanding micro enterprises as defined in the Commission Recommendation 2003/361/ EC (fewer than 10 workers and turnover of less than 2M Euros).
Type of investments
The capital investments eligible for funding will include tangible or intangible costs related to:
- new or upgraded buildings or structures,
- changes in land use,
- the development or upgrading of services or other infrastructural elements,
- new machinery or equipment including information technology,
- general costs related to these expenditures eg architects', engineers' or consultants' fees, marketing and promotional costs.
Type of aid
Capital grant
Aid intensity
Variable, dependent on requirement to allow the project to go ahead, with a ceiling of 50% of eligible costs.
Financing
Total Public Support for Measure 312: 30.0 M Euro
Total EU Contribution for Measure 312: 9.9 M Euro
Quantitative Indicators and Targets
Measure Code 312: Support for the creation and development of micro-enterprises |
|---|
Indicator Type | Indicator | Indicative Target |
|---|
Baseline |
Objective 28 | - Employment development in the non-agricultural sector | 400,000 persons |
Objective 29 | - Economic development of the non-agricultural sector | €35,467 |
Objective 30 | - Self-employment development | 79,000 persons |
Input | - Amount of expenditure (total) | €26m |
Output | - Number of micro-enterprises supported (division according to status, age category and type of micro-enterprise) | 600 enterprises |
Result | - Gross number of jobs created (division according to, gender age, and on-farm/off-farm jobs) | Increase from baseline.* |
- Increase in non agricultural gross value added in supported businesses | No target set. |
Additional Result | - Number of new micro-enterprises supported that remain in business each year | No targets set. |
- Number of people made self employed |
Impact # | - Economic growth (net value added in Purchasing Power Standards | Increase. No specific target Increase. No target set. |
- Employment creation (division according to age gender and on/off farm) |
*As per guidance, the proxy for Gross Value Added is to be profit (revenue minus costs). The baseline value for this result indicator will be established once information on revenue and costs in supported enterprises becomes available.
# Impact indicators will be estimated based on output and result indicators
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