Small Business: Growth Incentives Are Coming – Changing the Context for Synergies and Partnerships

Targeted incentives and other facilities for small and very small enterprises, in order to grow and finance their own business idea, the government promotes with a bill.

The new framework will provide for the first time increased tax credits and funding for small businesses in order to grow and enhance their competitiveness and productivity.

According to information, the tax deductions will essentially cover the costs incurred by the company, in order to ensure its entry into the Alternative Market of the Athens Stock Exchange.

With their inclusion in the Alternative Market and in the category “EN.A. ST.EP.” (Business Support), small and small and medium-sized businesses that are looking for resources to implement, develop, expand and commercialize or market their innovative business ideas, will be able to be part of a new financing ecosystem, which will be a springboard for the emergence of new dynamic companies.

This move can bring them cheap funds of up to 5 million euros, which will be offered to them through an Electronic Book of Offers, utilizing the network of AXA Members.

As regards the issue of cost – which in the case of small and very small businesses – can be prohibitive for the steps required, it is addressed precisely by the offer of incentives and above all, the increased tax deductions, which may even exceed 100% of the costs resulting in their development plans.

Always guided by fiscal cost and avoiding past experiments that failed miserably, incentives will be designed to ensure easier and greater access to funds and spending on technology, with increased depreciation which perhaps exceeds 100% of the cost. They will concern small businesses that will invest in industrial innovation and in key technologies, with the aim of turning technological innovations into sustainable products with real commercial potential.

Synergies and partnerships

In this direction, reform is being promoted in the context of incentives, for synergies and partnerships with industry and large companies. The plan envisages the expansion and strengthening of tax exemptions for mergers or absorption of small to large enterprises – and not only to medium ones. The new interventions come to complement and clarify the complex legislative framework that exists today to strengthen mergers, covering the “gaps” that have been identified. The current regime provides a 30% – 50% tax reduction in the new company that will be created for 9 years after the merger, but it is judged to be of limited efficiency and new higher rates are being considered tax-bonus.

In the “umbrella” of incentives, it is planned to include not only small and medium enterprises, but also freelancers (such as lawyers, <a … etc.) in order to become more competitive and develop further, as mergers and acquisitions pave the way for joining the NSRF and Recovery Fund subsidy programs.

It is worth noting that in Greece, there are approximately 800,000 small and medium enterprises of which 95% have up to 10 employees, while only 672 large enterprises have more than 250 employees.

Source: ertnews.gr