Development of the company often depends on the necessity of incurring extra expenses. Thanks to the thoughtful decisions these expenditures may result in the future revenues growth and/or in reducing costs, therefore they will have a positive impactonprofits.
Before going into business, an entrepreneur needs to secure sufficient financial resources in order to be able to operate efficiently and sufficiently well to achieve success. If thecompany does not haveits ownfinancial resources fromexisting operationsorfunds fromthe owners(recapitalization), it can use multipleinstruments of financial support, such as:
- grants from the Labour Office to start a business or to create new jobs
- investment grants to start a business supported by Operational Programmes
- loan funds
- microloans
- guarantee funds
- specific support for employers hiring disabled people
- banks offer - credits on preferential terms
- banks offer - credits on commercial terms
- business angels network
1.1 Grants from the Labour Office to start a business or to create a new workplace
Grants to start a business
One of the instruments of financial support is to assist the unemployed in starting their own business (or a social cooperative). Such support can be obtained only by an unemployed person who is registered in the competent Labour Office. Obtaining funds depends on the evaluation of a business idea and prepared business plan. It is possible to apply for a grant if an applicant have had no entry in the register of economic activities throughout 12 months directly preceding the date of application. Is it is required to sustain the business for atleast 12 consecutive months from the date of starting the business without any suspension. Chances of getting agrant can be increased by declaring the creation of new jobs.
Grant to create jobs
An employer who intends to create a new job for an unemployed person may apply for a refund of the cost of its creation. The application forms can be downloaded from the Labour Office website.
The refund of the cost of a workplace equipment and retrofit means that the costs incurred by the employer for creating a workplace for an unemployed person will be returned in the amount specified in a contract, but not higher than 5 times the amount of the average salary. The refund can only be given to the employer who has not decreased staffing in the last 12 months. The employer agrees to maintain the job created for a period of not less than two years of full-time employment.
The refund of the cost of a workplace equipment and retrofit means that the costs incurred by the employer for creating a workplace for an unemployed person will be returned in the amount specified in a contract, but not higher than 5 times the amount of the average salary. The refund can only be given to the employer who has not decreased staffing in the last 12 months. The employer agrees to maintain the job created for a period of not less than two years of full-time employment.
For more information please contact:
Municipal Labour Office in Kielce
Szymanowskiego 6 Street, 25- 361 Kielce
phone: +48 41 340 60 55
e-mail: kancelaria@mup.kielce.pl
www.mup.kielce.pl
or
District Labour Office
Kolberga 4 Street, 25-620 Kielce
phone: +48 41 367 11 00
e-mail: kiki@praca.gov.pl
www.pupkielce.pl
phone: +48 41 340 60 55
e-mail: kancelaria@mup.kielce.pl
www.mup.kielce.pl
or
District Labour Office
Kolberga 4 Street, 25-620 Kielce
phone: +48 41 367 11 00
e-mail: kiki@praca.gov.pl
www.pupkielce.pl
1.2 Loan Funds
It is difficult for new entrepreneurs to find support in the form of financial leverage. Banks are reluctant to give loans to starts-up. This is due tothe fact that new businesses carry a high risk, and usually do not have assets and high profits, which would allow to establish proper security. Institutions such as the Świętokrzyski RegionalLoan Fund meet new companies’ need to receive the support in order to grow. The Świętokrzyski Regional Loan Fund was established as an alternative for financial institutions and addresses SMEs with difficulty in obtaining commercial financing due to having no required collateral or credit history.
For more information please contact:
Swietokrzyski Regional Loan Fund
(Fundusz Pożyczkowy Województwa Świętokrzyskiego Sp. z o.o.)
(Fundusz Pożyczkowy Województwa Świętokrzyskiego Sp. z o.o.)
St. Leonard 1/14 Street, 25-311 Kielce,
phone: +48 41 360 02 80,
e-mail: sekretariat@fpws.eu
www.fpws.eu
phone: +48 41 360 02 80,
e-mail: sekretariat@fpws.eu
www.fpws.eu
1.3 Microloans
Micro-credit is an alternative for the financial means from a bank or a grant. Support of this type is offered by both non-profit institutions (such as regional development agencies, associations and foundations), as well as private companies or banks. There are numerous micro-loans available on the market. Their common feature is that they are more accessible for people starting their own businesses and have lower, often preferential, interest rate than the loans. In addition, the micro-loans institutions provide additional services to the customers, such as consulting or training, and even assistance with bookkeeping
For more information please contact:
Foundation – Regional Development Agency Starachowice (Office in Kielce)
Warszawska 21 Street, (second floor) Room No.9, 25-512 Kielce
phone /fax: +48 41 345 05 33
Micro Initiative
(Inicjatywa Mikro)
Solidarnosci 11 Street, 25-323 Kielce
phone / fax: +48 343 19 40, +48 41 343 19 36
e-mail: kielce@inicjatywamikro.pl
www.inicjatywamikro.pl
Koneckie Association for the Support of Entrepreneurship
(Koneckie Stowarzyszenie Wspierania Przedsiębiorczości)
IX Wieków Kielc 6 /24-25 Street, , 25-516 Kielce
phone: +48 41 345 39 08 fax: +48 41 343 17 80
e-mail: kswp@kswp.org.pl
www.kswp.org.pl
1.4 Guarantee funds
Świętokrzyski Guarantee Fund is to support the development of small and medium enterprises by facilitating their access to debt financing by granting guarantees for loans. The assistance of the Fund (a surety) may apply to particular companies in the early stages of development which cannot yet meet the requirements of banks in terms of collateral requirements.
For more information please contact:
Swietokrzyski Guarantee Fund
(Świętokrzyski Fundusz Poręczeniowy Sp. z o.o.)
St. Leonard 1/13 Street, 25-311 Kielce
phone: +48 41 242 95 05 fax: +48 41 242 94 92
e-mail: sekretariat@swietokrzyskifp.pl
www.swietokrzyskifp.pl
St. Leonard 1/13 Street, 25-311 Kielce
phone: +48 41 242 95 05 fax: +48 41 242 94 92
e-mail: sekretariat@swietokrzyskifp.pl
www.swietokrzyskifp.pl
1.5 Preferential and commercial bank credit offer
Bank loans are the most common way to obtain external capital to start and expand a business. Reducing the interest rate and increasing the competitiveness among banks allowed that this form of financing has become more available. The initiatives of the Polish National Bank affect the increase in the availability of various financial instruments for companies. These include: investment loans, working capital loans, bank guarantees and guarantees for export. There are also tools available on favourable terms, granted in connection with the participation of national or the EU funds.
For more information please contact:
Bank Gospodarstwa Krajowego
Zagórska 20 Street, 25-359 Kielce
phone: +48 41 360 12 00, fax: +48 41 360 12 03
e-mail: kielce@bgk.com.pl
www.bgk.com.pl
phone: +48 41 360 12 00, fax: +48 41 360 12 03
e-mail: kielce@bgk.com.pl
www.bgk.com.pl
1.5 Co-financing employment of disabled people
The employer of disabled people may receive the following support:
- Reimbursement of the costs of an empoyee that assists a disabled person
- Reimbursement of the training costs of employees with disabilities
- Reimbursement of costs related to the adaptation of buildings, equipment, purchase of equipmentand software
- Reimbursement of of a work-stand of a disabled person
- TMonthly wage subsidy for disabled workers
Green Line. Information and Consultation Centre of Employment Service
The Green Line makes it easier for employers to find workers and tells what support is offeredby employment services to companies that employ the unemployed.
tel.: 19524
e-mail: biuro@zielonalinia.gov.plwww.zielonalinia.gov.pl
1.7 Business Angels Network
"Business Angels" are persons, firms and funds that have succeeded and want to share their knowledge, experience and money with others. This is an opportunity especially for young people, but also for those with a unique idea to set up and conduct their own business together with an experienced partner. The value of investments of this type may range between a few thousand to a few million.
Such initiatives bring a number of benefits to investors from the economic point of view, including diversification of the investment portfolio and the ability to generate profits above the average rate of return, as well as participation in the creation of a new business, developing new products or a service. At present there are no business angels network in Kielce. We hope that this structure soon rises in the local market. It would be valuable for the Świętokrzyskie to have the network bringing together experienced entrepreneurs with an excellent reputation in the business community that wants to support the ambitious and high growth potential business ideas. We will be pleased to inform you if this idea becomes a reality, and we will post all available information about the networks on our web site.