Call for Proposals: Procedure “Support for Family Businesses, Creative Industries and Crafts”

Indoor shot of creative female painter with beautiful appearance sitting at table surrounded with colorful oils, looking with glad expression into camera being happy to creat great masterpiece

Application period: May 31, 2024 – September 16, 2024.

Total budget: BGN 117 514 155

The current procedure is in fulfillment of Priority 1: Innovations and Growth under the program “Competitiveness and Innovations in Enterprises” 2021-2027.

The purpose of the procedure is to encourage investments to improve production capacity and optimize business processes in family businesses, enterprises from the creative industries and crafts, and thus contribute to increasing their competitiveness and strengthening their market presence.

Eligible candidates:

1) To be merchants within the meaning of the Commercial Law or the Law on Cooperatives.

2) To be registered no later than 31.12.2021.

3) To be micro or small enterprises within the meaning of Art. 3 and Art. 4 of the Law on Small and Medium Enterprises and the Recommendation of the Commission of May 6, 2003 regarding the definition of micro, small and medium enterprises.

4) To have an average staff for 2023 that is ≥ 1 employed person.

5) To have realized net revenues from sales TOTAL for the 2021, 2022 and 2023 financial years depending on the category of the candidate enterprise:

  • Micro enterprise – ≥ BGN 30 000 and ≤ BGN 1800 000
  • Small enterprise – ≥ BGN 75 000 and up to ≤ BGN 7 200 000

6 ) To meet AT LEAST ONE of the following requirements:

  • To be family business when:
  • more than half of the capital (property) of the enterprise is owned by the natural person who created the enterprise or acquired its capital (property) AND at least one other (different) natural person is officially involved in the management of the enterprise, and there is a family relationship between the two persons,

OR

  • more than half of the capital (property) of the enterprise is owned by two or more natural persons who created the enterprise or acquired its capital (property), with a family relationship between them AND at least one of these persons or at least one other (different) natural person, with which all persons owning more than half of the capital (property) of the enterprise are related, officially participates in the management of the enterprise,

OR

  • more than half of the capital (property) of the enterprise is owned by the natural person who created the enterprise or acquired its capital (property) AND at least one other (different) natural person is assigned to an employment contract in the enterprise, and there is a family relationship between the two persons,

OR

  • more than half of the capital (property) of the enterprise is owned by two or more natural persons who created the enterprise or acquired its capital (property), with a family relationship between them AND at least one of these persons or at least one other (different) natural person, with which all persons owning more than half of the capital (property) of the enterprise are related, is assigned to an employment contract in the enterprise.

IMPORTANT: To be considered a family enterprise, the applicant must meet one of the above four conditions (hypotheses) in 2023 AND on the date of submission of the project proposal under the procedure (cumulative).

  • To be enterprises with a main economic activity (four-digit numerical code according to the Classification of Economic Activities – KID-2008 based on data for 2023) in the field of creative industries, as follows:

Printing activity (group 18.1 according to KID-2008) – permissible codes:

18.11 – Printing of newspapers

18.12 – Printing of other publications and printed products

18.13 – Pre-press preparation

18.14 – Binding and similar printing activities

Playback of recorded media (group 18.2 according to KID-2008) – permissible code: 18.20 – Playback of recorded media

Publication of books, periodicals and other publishing activities (group 58.1 according to KID-2008) – permissible codes:

58.11 – Publication of books

58.12 – Issuance of directories, directories and address lists

58.13 – Publication of newspapers

58.14 – Publication of magazines and other periodicals

58.19 – Other publishing activities

Issuance of software products (group 58.2 according to KID-2008) – permissible codes:

58.21 – Publishing of computer games

58.29 – Release of other software products

Production and distribution of films and television programs (group 59.1 according to KID-2008) – eligible codes:

59.11 – Film and television production

59.12 – Technical activities related to film and television production (post-production)

59.13 – Distribution of films and television programs

59.14 – Projection of films

Sound recording and publishing of music (group 59.2 according to KID-2008) – permissible code: 59.20 – Sound recording and publishing of music

Creation and broadcasting of radio programs (group 60.1 according to KID-2008) – permissible code: 60.10 – Creation and broadcasting of radio programs

Creation and broadcasting of television programs (group 60.2 according to KID-2008) – permissible code: 60.20 – Creation and broadcasting of television programs

Architectural and engineering activities (group 71.1 according to KID-2008) – permissible code: 71.11 – Architectural activities

Advertising activity (group 73.1 according to KID-2008) – permissible code: 73.11 – Activities of advertising agencies

Specialized activities in the field of design (group 74.1 according to KID-2008) – permissible code: 74.10 – Specialized design activities

Activities in the field of photography (group 74.2 according to KID-2008) – permissible code: 74.20 – Activities in the field of photography

Translation activity (group 74.3 according to KID-2008) – admissible code:

74.30 – Translation activity

Other educational activities (group 85.5 according to KID-2008) – permissible code:

85.52 – Non-formal education in the field of culture

Artistic and creative activity (group 90.0 according to KID-2008) – permissible codes:

90.01 – Performing arts

90.02 – Ancillary activities related to performing arts

90.03 – Creative activity in the field of literature and arts

90.04 – Operation of performance halls

Other activities in the field of culture (group 91.0 according to KID-2008) – permissible codes:

91.01 – Activity of libraries and archives

91.02 – Activity of museums

  • Preservation and management of cultural and historical monuments and places

6.3. To be enterprises carrying out an activity included in the List of Crafts pursuant to Appendix No. 1 to the Law on Crafts and whose owner(s) is/are registered with the same activity in the National Register of Craftsmen, maintained by the National Chamber of Crafts.

7) To have applied for support only for their main economic activity according to KID-2008 based on data for 2023 – applicable to family enterprises and to enterprises with a main economic activity in the field of creative industries, 

OR

8 ) To have applied for support for an activity according to the List of Crafts – Annex No. 1 to the Law on Crafts, with which the owner/s of the enterprise is/are entered in the National Register of Craftsmen, maintained by the National Chamber of Crafts – applicable to enterprises, carrying out an activity included in the List of Trades according to Appendix No. 1 to the Law on Trades.

Eligible activities:

  • Activity 1. Improving the production capacity of family enterprises and enterprises from creative industries and crafts (mandatory activity) by means of the acquisition of assets for the production process/service provision process (tangible and intangible assets), as well as tools and equipment below the value threshold of materiality for tangible assets, ensuring improvement of the enterprise’s production capacity.
  • Activity 2. Improving the market performance of family businesses and businesses from the creative industries and crafts (optional activity) through the creation of a new online store for the products/services of the enterprise, for which support has been requested under the procedure.

IMPORTANT: Activity 2 is not admissible for candidates who, by the deadline for applying under this procedure, have a contract concluded (which has not been terminated) under procedure BG-RRP-3.005 “Solutions in the Field of Information and Communication Technologies and Cyber Security in Small and Medium-Sized Enterprises” under Investment “Economic Transformation Program” from NPVU, including costs for creating an online store.

  • Activity 3. Improving management, production and logistics processes in family businesses and businesses in the creative industries and crafts (optional activity) by means of the introduction of the following ICT systems/modules to improve management, production and logistics processes in the enterprise:
  • Resource management system (ERP system);
  • Customer relationship management system (CRM system);
  • Supply chain management system/module;
  • Warehouse management system/module (WMS system/module);
  • Production management system/module (MOM/MES system/module);
  • System for business analysis (Business Intelligence system).

IMPORTANT: Applicants are not entitled to receive funding under the current procedure for the introduction of ICT systems/modules to improve management, production and logistics processes in the enterprise (under Activity 3) if, by the deadline for applications under this procedure, they have concluded a contract (which does not has been discontinued) under procedure BG-RRP-3.005 “Solutions in the Field of Information and Communication Technologies and Cyber Security in Small and Medium-Sized Enterprises” and/or under procedure BG-RRP-3.004 “Technological Modernization” under PIT from NPVU, including costs for the performance of the same activities (the same ICT systems/modules).

  • Activity 4. Consulting services for the preparation of the project proposal under the procedure (optional activity) in the period after the announcement of the procedure and until the submission of the project proposal under it.

Eligible expenses:

1 ) Activity 1 costs (mandatory):

  • Costs for the acquisition of tangible assets, representing machines, equipment for the production process/ the process of providing services, which ensure the improvement of the production capacity of the enterprise.
  • Costs for the acquisition of tools and equipment for the production process/service provision process below the value threshold of materiality for tangible assets, which ensure the improvement of the production capacity of the enterprise.
  • Costs for the acquisition of intangible assets – specialized software that ensures the improvement of the production capacity of the enterprise.

IMPORTANT: When acquiring specialized software eligible under the procedure, ensuring the improvement of the production capacity of the enterprise (including through a license for a certain period), the costs for it are permissible for the period from the date of conclusion of the contract with the selected contractor to the expiration of the deadline for the implementation of the project.

2) Activity 2 costs (optional):

  • Costs for creating an online store for the products/services of the activity for which support is requested – should not exceed BGN 10

3 ) Activity 3 costs (optional): 

  • Costs for introducing the above-mentioned ICT systems/modules to improve management, production and logistics processes in the enterprise – should not exceed BGN 15

4 ) Activity 4 costs (optional):

  • Costs for consulting services for the preparation of the project proposal under the procedure – should not exceed BGN 3

Amount of the grant:

  • Minimum amount of BFP: BGN 15
  • Maximum amount of BFP: BGN 150

In addition, the maximum amount of the requested grant for a single project proposal should NOT exceed:

  • for micro-enterprises: 100% of the applicant company’s average annual net sales revenue for the three-year period 2021, 2022 and 2023.
  • for small businesses: 60% of the applicant company’s average annual net sales revenue for the three-year period 2021, 2022 and 2023.

Important: The aid under this procedure is provided under the conditions of the “de minimis” regime. 

Funding percentage:

  • Family enterprises and enterprises with a main economic activity in the field of creative industries – 75%
  • Enterprises carrying out activities included in the List of Crafts according to Appendix No. 1 to the Law on Crafts – 85%

Duration of projects: up to 12 (twelve) months

For advice on eligibility, required documents and assistance in applying under this procedure, contact our team of professionals through our contact form: www.tetra-solutions.eu/en/contact or by phone +359 898 573 914.

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