Digital Grants for Autónomos/Self Employed in Andalucia 2021/2022
One thing we can’t deny Spain and her government is their willingness and enthusiasm to improve the country’s level of innovation. And the Covid Pandemic and Lockdown Period were key in demonstrating how well some sectors are doing, and how poorly others are doing.
It became apparent that the Small Business sector is lagging behind somewhat, and for that reason, the Andalusian Government has approved a set of grants aimed at ‘digital modernization and improving the competitiveness of self-employed persons or Small-Medium sized businesses’ for those enterprises that comply with a few basic requirements.
Approved applicants will be eligible for a minimum amount of 1,000 euros and a maximum of 6,000 euros.
This is GREAT news for SMEs in Andalusia, and we hope to be able to provide our services to local businesses to help upscale their current business practices.
The “Order” is a 29-page document full of legal and technical terms, so we have summarised the highlights here for you:
THE BACK STORY:
The sudden and widespread impact of the COVID-19 pandemic caused a drastic reduction in the world economy. It was found that in this context of health and economic crisis, many smaller businesses that were not 100% digital, suffered tremendously and that the most advanced companies in digital transformation had a greater capacity to respond to the challenges generated by COVID-19.
COVID-19 has become the unit of measurement to discern how prepared we were, both privately and publicly, on the path of digital transformation.
In this sense, one of the ten priorities of the Spanish Digital Agenda 2025 is the challenge of promoting the digitization of SMEs.
Only 17% of SMEs have successfully integrated digital technologies into their business, compared to 54% of large companies. Traditional SMEs often have doubts when choosing their digital business strategy, and they avoid advanced tools and applications based on Artificial Intelligence. Simultaneously, they are very vulnerable to cyber threats.
To all the problems caused by the pandemic, we must add the changes that COVID-19 has produced in the market and its consumers: After this last year the client/consumer has changed their way of relating and consuming, it has been digitized.
The 2019 “Information Society” report concludes that companies that transform digitally will be able to see an increase in their income of around 11% and a reduction in costs by almost a fifth.
WHAT IS DIGITAL TRANSFORMATION?
Digital transformation involves the reworking of products, processes, and strategies within the organization by taking advantage of digital technology, specifically by:
- significantly increasing cloud services,
- the consumption of digital media,
- the use of social networks,
- making video calls and videoconferences,
- e-commerce and,
The demand for new devices by companies and consumers must be adequately supported to achieve not only an increase in business competitiveness that results in an increase in quality employment and productivity in our companies but also the preservation and durability of Andalusian companies.
THE FINE PRINT HIGHLIGHTS:
There is a simplified application process, to ensure timeous receipt of the funds.
These funds may also be exempt from tax (but we ask you to get your Accountant/Gestor to confirm this according to your particular circumstances).
The purpose of the subsidies is none other than to make it possible for these business entities to grow, remain active and, where appropriate, re-float, favouring the sustainability and improvement, both economically and socially, of the Andalusian business sector.
For this reason, the Andalusian Government foresees that the digital transformation process begins without any initial investment, facilitating the advance of 100% of the maximum subsidized amount, and, at a later time, its justification.
THE “SPECIFICS” HIGHLIGHTS – that we feel would be relevant to you:
- Subsidies are aimed at self-employed persons, agricultural self-employed persons, and mutualists.
- The purpose of this order is to contribute to digital modernization, promoting innovation and technological development in business management, moving towards a digital economy.
- There are 2 Modules: Module A projects for the implementation and development of digital transformation solutions in business management; Module B’s objective is the incorporation of digital marketing strategies in the activity of the companies.
- The projects of each Module will be eligible for a minimum amount of 1,000 euros and a maximum of 6,000 euros.
WHERE JUCRA CAN HELP:
- Digital transformation: the adaptation and modernization of the processes of the business through the incorporation of information and communication technologies, as well as the establishment of a culture of innovation in the company that allows it to improve its performance, either in the percentage of turnover and profits generated, new products or services introduced and/or percentage of cost savings.
- Digital Marketing: Set of strategies used to market a product and/or service and stimulate its demand through digital channels.
- Digital channel: Medium is defined through data networks aimed at a specific communication with the target audience with its own mechanisms for interaction with it, such as social networks, email marketing, blogs and/or web pages.
- Business management software ERP (Enterprise Resource Planning): System that centralizes all the functions necessary to manage a company and especially those related to production, logistics, inventory, shipments, and accounting.
- Business management software CRM (Customer Relationship Management): A computer program that allows you to manage and organize all parameters related to customers.
- CMS Web Platform (Content Management System): A software tool to create, administer and manage a website.
- Provider of managed services MSP (Managed Service Provider): Companies that are in charge of the remote management of the client’s infrastructure and systems.
BENEFICIARIES & REQUIREMENTS:
Self-employed persons who have their fiscal domicile and carry out their economic activity in Andalusia, registered in the Special Regime of the Social Security of Self-Employed or Self-Employed Workers.
The percentage of the subsidy may reach up to 100% of the eligible expenses in each of the types of investment projects (A or B), with a maximum limit of € 6,000, IVA excluded.
An investment project is understood to be the set of actions carried out by the applicant within the framework of any of the following modalities:
- Module A: Implementation and development of digital transformation solutions in business management.
- Module B: Incorporation of digital marketing strategies in the activity of the company.
For the investment project to be eligible, it must have a minimum cost of 1,000 euros.
Investment projects will have a maximum execution date of six months from the issuance of the concession resolution.
- The following are considered eligible expenses in Modality A of investment projects:
- Acquisition of computer equipment or information and communication technology infrastructure when they are necessary for the installation of business management software.
- Acquisition of business management software Enterprise Resource Planning, Customer Relationship Management (CRM) or similar that reduces the digital divide of the requesting persons or entities.
- Acquisition of applications for the development and implementation of digitization solutions.
- Consulting costs incurred in connection with the implementation of digitization solutions.
- Costs of contracting services “in the cloud” to support business management software for a period of one year.
- Acquisition of any other digital solution or new robotization technology that introduces improvements in the business management and/or marketing system, as well as in production processes.
In Modality A, when the eligible expenditure consists of the joint digitization solution of computer equipment and business management software, the installation and start-up of the said joint solution, as well as the first-year registrations and licenses, will be considered eligible expenses, including antivirus programs, and the necessary training for their optimal use, including the license of the chosen operating system.
- The following are considered eligible expenses in Modality B of investment projects:
- Professional expenses for the creation, design, and implementation of digital marketing plans and campaigns, online positioning, email, marketing, social media, remarketing, communication on social networks, and Internet advertising.
- Consulting costs for the analysis of processes and definition of digital strategies, as well as the implementation consulting.
- Consulting costs related to staff training and migration or loading of significant data for the website to be operational.
- Professional expenses for the design, creation, or implementation of web pages with or without a sales portal, and the expenses of web providers of Content Management System platforms (CMS).
- Costs of contracting the services of web providers of open source CMS platforms and Managed Services Providers (MSP) for a period of one year.
There are some Budgetary limitations, financing, and control factors, which will be case-dependent. Your Gestor will be able to advise you further about these.
In general, the subsidies received under the present regulatory bases will be compatible with other subsidies, aid, income or resources that are granted for the same purpose, coming from any public or private, national or international Administrations or entities, of the European Union or of other International Organizations provided that the amount of the same, alone or in concurrence with other subsidies or aid does not exceed the amount of the subsidized expense.
We advise you to contact your accountant or Gestor to take advantage of this scheme as they will be the best ones to assist you with the application.
- Applications will be submitted solely and exclusively electronically, through the virtual office of the Ministry of Employment, Training and Self-Employed Work, addressed to the person who owns the respective Territorial Delegation.
- In the event that it is intended to request a subsidy for each of the modalities of the investment projects, a single application must be completed.
- Within the ten days following receipt of the request initiating the procedure in the electronic registry of the Junta de Andalucía, a communication will be sent to the requesting person or entity indicating the date on which the request has been received by the competent body.
There will be a load of necessary Supporting Documentation, so be sure to read through all the requirements thoroughly!
Notifications will be made individually, through the Telematic Notifications System of the Junta de Andalucía in the electronic address enabled for the practice of electronic notifications for which you will have to register.
- The beneficiaries will be obliged to maintain their status uninterruptedly during at least 1 year, counting from the date of submission of the application.
- Fulfil the objective, implement and execute the investment project that bases the granting of the subsidy, in the form and deadlines established.
- Comply with the obligation to keep the inventories subject to the subsidy attached to the subsidized investment project for at least two years from the payment of the subsidy.
- Notify the awarding body of the obtaining of other subsidies, aid, income, or resources that finance the subsidized activities. This communication must be made as soon as it is known and, in any case, prior to the justification of the application given to the funds received.
- Accredit, prior to issuing the proposed concession resolution, that it is up to date in the fulfilment of its tax obligations and against Social Security, the corresponding verifications being carried out ex officio by the managing body.
- Keep the supporting documents for the application of the funds received, including electronic documents, as long as they can be subject to verification and control actions, for 6 years from the last entry made in the accounting books.
- Have the accounting books, completed records, and other documents duly audited in the terms required by the applicable commercial and sector legislation, in order to guarantee the proper exercise of the powers of verification and control.
- Keep separate accounts or assign a specific accounting code for all the items included in the subsidized investment project, all within the framework of national accounting standards and, if the actions are co-financed with European funds, as to the provisions of section 4 of article 124 of Regulation (EU) no. 1303/2013.
METHOD OF PAYMENT:
The payment of the subsidies will be made through a single advance payment for the amount of 100% of the concession resolution.
In any case, the beneficiary persons or entities will have the obligation to prove, before proposing the payment, that they are up to date in the fulfilment of their tax obligations and against Social Security, as well as that they are not debtors of the Junta de Andalucía for any other entry of Public Law.
We advise you to contact your accountant or Gestor to take advantage of this scheme as they will be the best ones to assist you with applications.