Factsheet for measure
NO-2020-13/1211
–
Updated
– measures in Norway
New measures for entrepreneurs and growth companies
Ny tiltakspakke for gründere og vekstbedrifter
Background information
The 27 March, the government proposed a new package of measures worth almost NOK 4.5 billion (€440 million) to help companies through the COVID-19 crisis. Half of the state funded package should go to strengthening subsidies for entrepreneurs and growth companies. Innovation Norway (Innovasjon Norge) manage the funds that will go to development projects in innovative start-ups, small and medium-sized enterprises, and growth companies across the country. Innovation Norway is a Norwegian hybrid state-owned company established by law in 2003 with the aim of increasing innovation, growth and export for Norwegian businesses through capital and expertise.
Content of measure
Innovation Norway (Innovasjon Norge) manage a government funded package of measures to help the country's entrepreneurs and growth companies through the COVID-19 crisis. With these grants, Innovation Norway shall contribute to the national benefit with instruments that complement the other measures the government has already introduced. The package represents an increase in Innovation Norway’s framework of NOK 4.5 billion. It is distributed as follows:
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NOK 2 billion to innovation grants, i.e. grants towards development activities in small and medium-sized enterprises, which are assumed to have large market potential.
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NOK 500 million towards established grants, i.e. entrepreneurs and start-up companies with innovative business ideas that have market and growth potential but reduced access to equity.
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NOK 1.6 billion increase in the loan limit for innovation loans. Innovation loans can be used to commercialise new solutions, strengthen working capital, and to promote companies to expand abroad.
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NOK 300 million to interest fund support, which gives Innovation Norway the opportunity to grant interest-free periods for our customers.
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NOK 50 million to a scheme for private innovation environments. This is in order to secure the environments that have been build up over several years, including but not limited to incubators, co-working spaces and accelerators.
Updates
The following updates to this measure have been made after it came into effect.
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30 June 2022
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The support for development projects in innovative start-ups, small and medium-sized enterprises (SMEs), and growth companies, allocated at the start of the COVID-19 pandemic in 2020, and again in 2021, was managed by Innovation Norway. In 2022, Menon Economics conducted an evaluation of Innovation Norway’s financial services specifically targeted at start-ups. The study concluded that start-up support instruments are particularly relevant during economic downturns when the number of newly established businesses is high, and access to capital is limited. From a structural perspective, the evaluation indicated that market failure has diminished in recent years, and the shortage of early-stage capital during the COVID-19 crisis was not as severe as in previous downturns. This finding suggests that the need for public capital injections into this segment has decreased. However, the study also highlighted that there remains a clear need for capital support for start-ups, particularly because Norway continues to lag behind other countries in this regard. The report emphasised that such capital injections should be significantly increased during challenging economic periods when access to private capital dries up, and the number of new business establishments rises.
Report by Menon
Economics: Evaluering av Innovasjon Norges oppstartsfinansiering
(PDF).
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23 February 2021
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23 February, the funding of support to entrepreneurs and growth companies was increased by €49.6 million (NOK 500). The funding goes to small and medium-sized companies that can apply for development projects in 2021 and will made it possible for companies to carry out projects despite liquidity challenges under the pandemic.
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Use of measure
No information to date.
Target groups
Actors and funding
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Actors
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Funding
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National government
Public support service providers
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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Main level of involvement: Peak or cross-sectoral level
Involvement
Social partners have been consulted regularly during the design and implementation of the measure.
Views and reactions
The social partners are supportive of the measure.
Sources
