New Hungary Enterprise Development Programme Development funding for 100 000 small and medium size enterprises19 October 2007
The most significant and comprehensive enterprise development programme in Hungary’s history that is just about to be launched will promote the prosperity of several millions of people through over 100 000 enterprises, employees and family members.
Hungary is about to implement a second economic structural change. This is the moment when it will turn out whether we will be capable of rising above the European average, fundamentally reforming our entire economy and shifting towards a knowledge economy capable of producing high value-added products.
It is well evident that the development reserves of small and medium size enterprises hold the country’s greatest potential. These enterprises employ two-thirds of Hungarian employees and generate half of the country’s GDP. However, the way that these enterprises only make up one-third of total exports nevertheless represents a problem. The key objective of the Enterprise Development Programme is for small and medium size enterprises capable of standing their ground in the context of international competition to become the solid base of the new knowledge-based economy, hence providing a safe haven for the millions of employees they engage, as well as their family members.
The New Hungary Enterprise Development Programme launched by the government endeavours to provide comprehensive development opportunities by focusing on Hungarian small and medium size enterprises. The objective of the Programme is to increase the economic performance of SMEs by improving the regulatory framework, facilitating access to financing resources and developing the knowledge and infrastructure of enterprises. Coordination based on a sustainable programme and market mechanisms is needed. Market coordination, competition and the validation of coerced efficiency ensures the potential for value-added production increase to be used as a standard for measuring success, since enterprises will only be able to employ more people, be competitive and operate in a stable way if they are able to increase income generation.
It is essential that state interventions contribute to the development of missing markets, or markets operating in an unsatisfactory manner, and therefore improve the efficiency of the programmes and increase the number of enterprises that can be reached.
By implementing programme objectives, we envisage a future small and medium size enterprise sector capable of maintaining and enhancing its competitiveness, which in turn increases the level of employment and income generation in the overall macro-economy by growing in unison with the competition sphere, pursuant to which the Hungarian economy will become better integrated in the global economy and the single market. By building on a highly developed human and physical infrastructure, internationally competitive enterprises, also including small and medium size enterprise would operate in a business-friendly and innovation-promoting environment.
With the assistance of EU funding of 1200 billion HUF and thanks to the repeated used of reimbursable funding, over 2000 billion HUF is available for the development of Hungarian enterprises up to 2015.
Programme components:
• Developing enterprise infrastructure, by, amongst others, developing industrial parks, incubation and logistics centres and IT
• Extending the scope of financing resources by providing non-reimbursable grants, loan guarantee and capital schemes to facilitate access to funding
• Tender schemes developing enterprise knowledge and promoting innovation
• Creating a business-friendly regulatory framework by reducing administrative loads
7+2 YEAR ENTERPRISE DEVELOPMENT FRAMEWORK OF THE NEW HUNGARY DEVELOPMENT PLAN: 1200 BILLION HUF
It is well evident that the development reserves of small and medium size enterprises hold the country’s greatest potential. These enterprises employ two-thirds of Hungarian employees and generate half of the country’s GDP. However, the way that these enterprises only make up one-third of total exports nevertheless represents a problem. The key objective of the Enterprise Development Programme is for small and medium size enterprises capable of standing their ground in the context of international competition to become the solid base of the new knowledge-based economy, hence providing a safe haven for the millions of employees they engage, as well as their family members.
The New Hungary Enterprise Development Programme launched by the government endeavours to provide comprehensive development opportunities by focusing on Hungarian small and medium size enterprises. The objective of the Programme is to increase the economic performance of SMEs by improving the regulatory framework, facilitating access to financing resources and developing the knowledge and infrastructure of enterprises. Coordination based on a sustainable programme and market mechanisms is needed. Market coordination, competition and the validation of coerced efficiency ensures the potential for value-added production increase to be used as a standard for measuring success, since enterprises will only be able to employ more people, be competitive and operate in a stable way if they are able to increase income generation.
It is essential that state interventions contribute to the development of missing markets, or markets operating in an unsatisfactory manner, and therefore improve the efficiency of the programmes and increase the number of enterprises that can be reached.
By implementing programme objectives, we envisage a future small and medium size enterprise sector capable of maintaining and enhancing its competitiveness, which in turn increases the level of employment and income generation in the overall macro-economy by growing in unison with the competition sphere, pursuant to which the Hungarian economy will become better integrated in the global economy and the single market. By building on a highly developed human and physical infrastructure, internationally competitive enterprises, also including small and medium size enterprise would operate in a business-friendly and innovation-promoting environment.
With the assistance of EU funding of 1200 billion HUF and thanks to the repeated used of reimbursable funding, over 2000 billion HUF is available for the development of Hungarian enterprises up to 2015.
Programme components:
• Developing enterprise infrastructure, by, amongst others, developing industrial parks, incubation and logistics centres and IT
• Extending the scope of financing resources by providing non-reimbursable grants, loan guarantee and capital schemes to facilitate access to funding
• Tender schemes developing enterprise knowledge and promoting innovation
• Creating a business-friendly regulatory framework by reducing administrative loads
7+2 YEAR ENTERPRISE DEVELOPMENT FRAMEWORK OF THE NEW HUNGARY DEVELOPMENT PLAN: 1200 BILLION HUF