Overview of New Financial Support for Social Enterprises in Romania
The Ministry of Investments and European Projects (MIPE) in Romania is introducing new financial assistance ranging from €100,000 to €300,000 for the establishment of social enterprises in the counties of Gorj, Dolj, and Hunedoara. This initiative is part of the "Action for the Development of Enterprises and Entrepreneurship – Support for Establishing Social Enterprises," under the Just Transition Program (PTJ) for 2021-2027.
Total Budget and Distribution
The overall budget for this initiative is €27 million, allocated as follows:
- Gorj: €9,000,000
- Hunedoara: €7,847,682
- ITI Valea Jiului (Hunedoara): €4,225,675
- Dolj: €6,000,000
Of the total budget, 85% will come from European funds, and the remaining 15% will be sourced from the state budget.
Grant Administrator Phase
In the first phase, social entrepreneurs will not have direct access to the funding. Instead, funds will be distributed to administrators of a grant scheme designed for small-scale aid ("ajutoare de minimis").
Eligible Administrators Include:
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Higher Education Institutions: Located within the targeted areas and accredited according to current legal provisions.
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Local and County Administrative Units: Capable of managing, legally, and financially administering non-reimbursable funding programs.
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Non-Governmental Organizations (NGOs): With experience in the social economy sector and established according to national legislation regarding associations and foundations.
- Partnerships: Any collaborations among these entities are eligible, with specific guidelines for public-private partnerships where public entities must lead.
These organizations will submit significant project proposals and can receive a minimum of €2 million each. The maximum aid for large projects varies depending on the specific county budget.
Support for Social Enterprises
In the second phase, administrators of the grant scheme will recruit target groups—future entrepreneurs—to establish social enterprises and access financial aid.
Administrators must allocate at least 70% of the received funds toward grants for social entrepreneurs.
Funding for Newly Established Social Enterprises:
The selected social enterprises will receive non-reimbursable aid ranging from €100,000 to €300,000 each. Social entrepreneurs are required to contribute at least 5% of the non-reimbursable support received, and the social enterprise must employ a minimum of two staff members.
Conclusion
This initiative aims to bolster the social entrepreneurship landscape in Romania’s targeted counties, providing vital financial resources to foster new social enterprises. The structured approach ensures that administrators manage the distribution efficiently and ensure that selected enterprises meet specific employment criteria, ultimately enhancing local economies and communities.
