Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure DK-1992-18/2615 – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Open ended, started on 01 May 1992|
|Context||COVID-19, Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Reorientation of business activities
– Change of production/innovation
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Measure added||23 June 2022 (updated 17 November 2022)|
The purpose of the Growth Fund is to promote growth and innovation in small and medium enterprises in all industries as a way to achieve greater socio-economic returns.
To face the COVID-19 crisis, the state introduced two schemes in the framework of the Growth Fund:
Another measure introduced to face the pandemic early 2020 is the COVID-19 Start Loan. It consists of a loan targeted at young businesses.
To face the COVID-19 crisis, the state introduced two schemes in the framework of the Growth Fund, each of them providing an overall available support of DKK 25 billion (€3.36 billion):
The Growth Fund is a state investment fund which aims to encourage growth in companies by providing venture capital, loans and guarantees to selected companies that can present a potential for growth and job creation based on a concrete project. The strategy of the fund is implemented in three main focus areas, the fund:
With reference to SMEs, the instrument allows the state to provide a guarantee of 80% of new bank loans issued to companies affected by the COVID-19 crisis. In relation to large companies based in Denmark, the Growth Fund can guarantee 70% of the loans or credit issued to cover company's losses as a consequence of the COVID-19 crisis. Both schemes were valid until 1 October 2020 and has been prolonged without an end date.
The main characteristics of the third instrument implemented to face the COVID-19 crisis, that is to say the COVID-19 Start Loan, are:
The loan is on DKK 0.4 - 2 million (€ 0.05 - 0.27 million); There is a requirement for cofinancing from other actors (no specifications about the actors) in a ratio of up to 1:3; The interest rate is based on Cibor 3 + 5%; The duration is up to 6 years; The scheme ran in the first place until 30 September 2020, but has been prolonged without a new fixed end date (as at October 2020).
The Growth Fund is evaluated every three years. An evaluation of the Growth Fund from 2021, shows that the Growth Funds activities in 2020 has been a part of creating and maintain 20.000 workplaces, and has increased the BNP with 15 billions DKK (€2 billion), and contributed with 8 billion DKK (€1 billion) by tax revenue.
In the spring of 2019, the supported companies employed more than 65,500 employees and had a total turnover of more than DKK 107 billion (€14.4 billion). In 2017 a total of 1,652 companies benefitted from cofinancing via the fund. Overall DKK 4.9 billion (€653 million) was invested.
|Does not apply to workers||
|Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), The Growth Fund, measure DK-1992-18/2615 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-1992-18_2615.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.