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5.3.3.1.2 SUPPORT FOR THE DEVELOPMENT AND CREATION OF MICRO-ENTERPRISES (Rural Priorities)
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 to 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; and
- 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; and
- Provision & upgrading of tourist accommodation, 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;
- the development or upgrading of services or other infrastructural elements;
- new machinery or equipment including information technology; and
- general costs related to these expenditures e.g. 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.
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