The government approved a 3-year support program for small producers, which will require 60 million lei for implementation
According to the document, the program is meant for small producers operating in the processing industry with a turnover of up to 5 million lei and up to 9 employees, as well as for individuals who plan to create a new business in this field. They will be able to receive grant financing up to 70% of the investment project's value, but within the limit of 0.5 million lei. The beneficiaries themselves must contribute at least 30% of the project cost. They can also benefit from information support and training to develop the necessary skills. Beneficiaries can be small producers who have been working for at least 12 months before applying for the program and who have submitted reports to the National Bureau of Statistics or the State Tax Service for at least one reporting year. For individuals, the requirement is to confirm one year of experience and activity in economic areas related to the program. Companies that do not have sufficient funds to co-finance the project will be able to use credit facilities in financial institutions. In this case, producers will be able to use the financial guarantee issued by the Credit Guarantee Fund for Small and Medium Enterprises. With the grant, entrepreneurs will be able to buy machinery and equipment, raw materials and construction materials needed to equip and organize production facilities, franchises, digitalization solutions and business development services. In addition to the financial component, the program also provides information, advertising, monitoring and evaluation activities. The program will be launched in the third quarter of this year and will last for 36 months, with an estimated budget of 20 million lei per year. The institution responsible for the program's implementation is the Organization for Entrepreneurship Development (ODA), which is to develop an operational manual for implementation, as well as a guide for entrepreneurs. The program is expected to contribute to the development of industrial production in small enterprises. According to statistics, Moldovan industry has gone through a difficult transition process and needs to enter new markets. Deindustrialization was accompanied by an outflow of specialists. The share of industry in GDP has decreased from 40% in 1991 to 13.4% in 2021. In recent years, the share of the processing industry in GDP has also been decreasing - from 10.1% in 2020 to 9% in 2022. In addition, there has been reduced industrialization in most parts of the country. The Small Producers Support Program is designed to stimulate the development of small industrial enterprises and change the trend of deindustrialization of Moldova. // 24.07.2024 - InfoMarket.
