Some people see opportunity behind misfortune. Historically, there have always been people like this. In the business world, in fact, many visionaries have been successful because, in moments of crisis when all seemed dark, they saw a glimmer of light. They found help or something to hold on to. That opportunity to launch a new business and occupy an unattended, unoccupied, or poorly covered space in the market. Now, in the midst of the COVID-19 crisis, European funds have been announced. European funds to help companies in all EU member countries.
This aid, approved in the midst of the pandemic crisis, is clearly focused on the future, and that future is digitalization. To be more specific, European funds to combat COVID-19 seek to promote and boost businesses that fit into the new sociocultural, economic, and labor scenario that, in the midst of the pandemic, has finally been discovered: the digital world. Will European funds be the definitive aid for the digital transformation of the entire continental business fabric? And at the national level? How are these European funds being managed in 2021 in Spain? At easyap, we will attempt to answer these questions in this article.
What does European funding consist of?
In view of the financial havoc wreaked by COVID-19 on the global business community, the EU has been forced to take urgent action. To this end, last summer it finally approved a financial injection for member countries totaling €1.8243 trillion. This is a very large amount that represents an ideal opportunity for companies that know how to identify and recognize it. Why? Mainly for the following two reasons:
- Because it is a very substantial and useful financial amount in itself for any business, whether it is in a bad financial situation or not.
- Above all, because it provides the perfect excuse or reason to carry out the digital transformation that has already begun to take place during the pandemic, with a radical change in the production model of most businesses.
Through two main programs, which we will explain below, the EU wants to take advantage of the current situation to help European companies, especially SMEs, make the definitive leap into the digital world. To this end, it will encourage European funds to help those companies that are committed to the green economy and leave behind old practices and processes in favor of digitization. The two programs are:
- The Next Generation EU, which is a massive recovery fund that, in the case of Spain, will enable the mobilization of up to 140 billion euros in investments in loans and transfers over the next six years.
- Aid approved in July 2020 of around €43 billion for Spain (the second largest recipient of funds) under the Multiannual Financial Framework (MFF) .
Given the high amount of both aid packages and financing programs, we are talking about an opportunity similar to that which arose with the economic transformation processes that took place in the 1990s following the creation of the European Cohesion Fund. And, in this case, the aid is entirely focused on promoting digital transformation, especially for small and medium-sized enterprises.
European funds and the SME digitization plan
And we say that European recovery funds are aimed at small and medium-sized enterprises based on reasonable arguments. Without going any further, the weight of SMEs in our country is much greater than in the rest of the EU member states. In fact, in 2018, SMEs contributed 5% more to Spanish employment and gross business value than their counterparts in the EU. That is why the creation of companies in Spain as the economic revival of those that have been battered by the crisis.
Also, due to their significant weight in the national and, consequently, European business fabric, the damage caused by COVID-19 has had a greater effect, as they are also more vulnerable. That is why the SME digitization plan, with European funding, provides for public investment of €3 billion in the period 2021-2025. This aid to the self-employed and SMEs, the aim is to launch a comprehensive digitization program that promotes the implementation of digital tools.
How can you apply for this assistance?
Given the high amounts involved and how necessary they are to revive the national business fabric, the central government and regional administrations are placing great importance on these European funds. This is even more so given that Spain is the second largest beneficiary of this aid. However, as a a financial manager or entrepreneur, you may ask yourself: "How do I invest these funds in my business?" In plans or measures such as the following:
- Installation and development of online stores, better known as e-commerce, which are booming thanks to the surge in online shopping during the pandemic.
- Design and presentation of plans in which the central focus of the strategy is digital marketing and its channels.
- Creation, use, and optimization of websites, if you were not already doing so before this crisis.
- Internal promotion of digital training for your business employees.
- Implementation of digital tools and platforms, as well as customer and resource management systems such as CRM or ERP.
It is in this last point that we listed where easyap can be your best ally. Solutions like ours, with which you can the issuance and receipt of your invoices will be completely digital, will be a perfect example of how your business is immersed in a full digital transformation and on the right track.
With easyap, all your electronic invoicing will be collected, tracked, audited, and controlled by the system we will implement in your business. And thanks to it, you will not only be able to take advantage of aid such as European funds, but you will also save time and essential resources that you can devote to other day-to-day tasks.
And who distributes European funds in Spain?
But returning to European funds to combat COVID that have been approved in the EU, you should know that they are being distributed by the different governments, in many cases also through banks and financial institutions. However, in a country like Spain, where many powers are transferred to the autonomous communities, not all entrepreneurs are clear about who to apply to for this aid.
The truth is that Next Generation EU funds are being granted in Spain within the framework of the Spanish Economic Recovery, Transformation, and Resilience Plan. This plan proposes three ways in which funding can be accessed:
- Through the PERTE (Strategic Projects for Recovery and Transformation) managed by the Ministry of Industry. These projects, which are not so focused on aid for the self-employed and small and medium-sized enterprises, provide funding for large or macro projects.
- Due to the public tenders issued by the various regional governments and which are more focused on financing SMEs.
- Through public competitions for collaborative projects between regional administrations and private companies that wish to enter these competitions.
In turn, given that these calls for aid that have been coming out in recent months are not easy for all companies to find out about, many banks are already taking steps to raise their profile. Therefore, another option for finding out more information about calls for proposals or competitions for Next Generation EU funds is through your bank.
The importance of digitization beyond these subsidies
In conclusion, we at easyap would like to leave you with something to think about. It is true that, as the saying goes, money talks. That is why this European funding for freelancers and businesses could be the final push they need to make the leap into the new digital age.
However, it should be noted that beyond the economic relief that such financing can offer, the digitization of businesses has already proven to be a wise move. With a solution such as the one we implement at easyap in the field of electronic invoicingand process automation, in addition to leaving completely outdated processes behind, you will save a lot of time and be able to reorganize resources in order to optimize your company at all levels.
We, with a team of experts in electronic invoicing process automation and specialists in the technology sector, we are aware that digital transformation is an inevitable fact and that it is already here. That is why, since we saw it emerge back in 2001, we got down to work offering technological solutions adapted to the new reality in terms of financial processes for companies and businesses. And now we invite you to do the same. To finally join the digitalization movement and do it with us.
