Issue link: https://maltatoday.uberflip.com/i/1351945
5 NEWS 18.3.2021 MOST of the Maltese busi- nesses that apply for EU funds manage to obtain the funding requested, although business- es still need further facilitation to apply, a report published by the Malta Business Bureau found. e report, 'Improving Ac- cess to EU Funds by Private Enterprise in the Program- ming Period 2021-2027' , ana- lysed the impact of EU funds on the Maltese economy and the opportunities and chal- lenges that businesses face when applying for EU funds. It was launched in a Webi- nar entitled 'Unlocking Busi- ness' Capacity to Access to EU Funds' , where it was also ex- plained that EU funds during the 2014-2020 programming period were estimated to have contributed €662 million to Malta's GDP and 1,920 new jobs during that seven-year period. e report also featured a survey with responses from over 100 Maltese businesses that have either already ap- plied for EU funding or are considering doing so to be able to evaluate businesses' experi- ences and expectations, and what more needs to be done to facilitate access. MBB President, Simon De Cesare said that 49% of re- spondents to our survey have applied for EU funding, either directly to Brussels-managed programmes or to locally-ad- ministered structural funds, and positively, 76% of these companies managed to obtain them. "One can only imagine how much more beneficial EU funds can be for the country and to businesses themselves if more companies were en- couraged to apply", he said. e webinar panellists con- curred with the report's con- clusions that more could be done to facilitate businesses access to EU funds, including further awareness raising and simplifying procedures to re- duce administrative burden. Words of encouragement to prospective applicants were also offered, with panellists explaining that while the ap- plication process can be cum- bersome, it should not be in- timidating, and the rewards can go a long way to help busi- nesses fulfil investment goals. rough the report, the MBB put forward several rec- ommendations, which seek to improve business access to EU funds. ese recommenda- tions include, amongst others, simplifying certain specific procedures, providing support to companies who are required to seek international partners to fulfil eligibility criteria, and increasing awareness of calls for applications. "e subject of EU funds and the opportunity they pres- ent to businesses is close to our heart and represents one of the MBB's core missions", MBB CEO Joe Tanti said. "We will be increasing our efforts to support businesses in tapping directing funding in Brussels, by welcoming con- cept notes and helping them identify the correct funding stream for their project ideas. is service will be offered through the Enterprise Europe Network - Malta." e Malta Business Bureau also recently presented the report to the Parliamentary Secretary for EU Funds, Stefan Zrinzo Azzoppardi, in a meet- ing where the key findings and recommendations were high- lighted. e Malta Business Bureau and the Parliamentary Sec- retariat have committed to working together to encour- age more businesses to apply for EU funds. EU Funds contributed €662m to Malta's GDP between 2014 and 2020 Majority of businesses that apply for funds manage to obtain them, but administrative procedures should be simplified more How EU Funds Impact Maltese Businesses • EU funds aim for convergence and economic growth, thus targeting improvements in the supply-side of the economy. • Businesses benefit in two ways, firstly by being direct beneficiaries of the fund themselves. Secondly, even when businesses are not the direct beneficiaries of the funds, they still benefit through the provision of the good or service procured by the beneficiary of the fund. • This particular chapter focuses on how the EUR 838m of EU funds allocated for the 2014-2020 Programming Period impact Maltese businesses by distinguishing between: • Demand-side benefits that result from the expenditure of the funds can take the form of jobs, profits, etc. and is estimated to contribute EUR 662m to Malta's GDP over a seven-year period, equivalent to an annualized EUR 95m and 1,920 full-time jobs that last over the entire programming period. • Medium-to-long term supply-side benefits that result from the investing funds, bringing about productivity improvements (in the form of better-skilled workers, improvements in energy efficiency, R&D, improvements in infrastructure, etc.). These are harder to quantify, but headline indicators show that Malta's performance relative to the EU-27 is positive in the areas of business internationalization and the efficiency of public administration, but weaker in access to finance, innovation, and energy. Results from Survey & Focus Groups • 76% of respondents indicated an unsatisfactory level of awareness of EU funds and 80% claim that not enough is being done to raise awareness on EU funding programs. • Only 51% of companies attempted to apply for EU funds. Bureaucracy and the time it takes for a decision to be taken on an application were the main factors putting companies off from applying. From those that applied, 76% were successful. Direct Funding • One of the biggest blocks to companies successfully applying for direct funds proved to be the requirement to find a reliable project partner. However, it is understood that this is a necessary requirement. • Progressive reimbursements for project costs in direct funds were labelled as an extremely positive factor that help with cash flow. • Applicants were satisfied with the application process for Horizon 2020. Boosting participation in this program can be very beneficial as it remains an attractive option for businesses. • Amendments to the deliverables of the grant agreement due to external factors (such as COVID-19) were almost impossible. Indirect Funds • Usual issues with administration and bureaucracy were mentioned. Suggestions made to make the entire application process (including implementation and final reports) completely digitized, rather than rely on a mix of online and offline submissions. • Several examples were mentioned in the report of avoidable situations (from both businesses and national contact points) that could have made the experience more rewarding for all involved. These are tackled in the recommendations. Recommendations The recommendations may be targeted to either the EU institutions, the national government, or both as appropriate. 1. Allow pre-screening of applications. This is already done by EUPA for Erasmus+ and MCST for PRIMA. 2. Facilitate process to find international partners through revamping and increasing the awareness about the EU partner search portal. 3. Ensure adequate promotion and visibility in the business community. None of the companies were aware of the existence of the EU Funding and Tenders Portal and the Enterprise Investments App. Info days by NCPs need to be brought back, held well in advance of any call, and promoted adequately and on time. 4. Ensure consistency in feedback to rejected project applications when different evaluators are involved. 5. Ensure full compliance with the "once-only principle" to cut down on administrative burden. 6. Appropriate streamlining of certain processes. Specific examples given in the report.