Aspects to consider when looking for a grant for your venture in Spain

When embarking on a new business project in Spain, the search for subsidies is an attractive option for financing its start-up or growth. However, it is essential to approach this process with a balanced perspective, recognizing that grants are a complementary component in any entrepreneur’s financial picture. Below, we will explore some important aspects to consider before applying for a grant, highlighting both the benefits and challenges that come with this path.

Complement for your business
Grants are a valuable aid to help you start or grow your business. It is important to consider them as a complement to your business plan, taking into account that they are an additional source of financing.

Variable amount
The amount of the subsidy varies according to various factors such as the entrepreneur’s profile, business activity, degree of innovation, among others. Therefore, it is advisable to seek additional sources of financing to secure the total investment required.

Uncertainty
Although grants are promoted, obtaining them is neither easy nor quick. It is crucial to have an alternative plan (plan “B”) in case the grant does not materialize.

Advances and co-financing
Grants are generally paid after the investment is made, so pre-financing is required. In addition, the administrations usually finance a portion, and the entrepreneur is expected to contribute a portion of his own capital, thus demonstrating his commitment to the project.

Detailed information
Subsidies are processed through specific entities in each autonomous community. It is essential to be properly informed and to go to these entities to obtain the necessary information.

Consult the bases
The bases of the calls for applications are published in the BOE or in the official gazettes of the Autonomous Communities. Carefully analyzing these bases is crucial to understand the requirements and evaluation criteria.

Competition and speed
Some grants are awarded on a competitive basis, which means that they are awarded to the most highly rated projects. Others follow the non-competitive competition regime, being assigned in order of presentation. In both cases, speed of presentation is key.

Limited funds
Although each autonomous community has subsidy programs, funds have been reduced due to the crisis and cutbacks. Therefore, it is important to explore various sources of financing.

Time limits
Grants often have time limits, some are announced annually in a multi-year framework, while others have a specific announcement period.

Incompatibilities
It is important to note that some grants, especially non-repayable grants, may be incompatible with each other. It is recommended to verify the conditions and requirements to avoid possible conflicts.

In conclusion, subsidies represent a valuable tool for entrepreneurs in Spain, but it is essential to approach the search for them with realism and caution. By considering them as a complement and not as the only source of financing, entrepreneurs can strengthen their business plans and maintain the flexibility to adapt to different circumstances. Becoming properly informed, preparing alternative plans and understanding the dynamics of the application process are key steps to maximizing the opportunities that grants can offer in business development.

Activity integrated in the project “Entrepreneurship and Integration” financed by the Ministry, Social Security and Migration.