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Grant Analysis

Purpose & Target

Core Objective: The 'Erasmus for Young Entrepreneurs' grant aims to foster cross-border learning, knowledge transfer, and networking among entrepreneurs by enabling new or aspiring entrepreneurs to gain experience from seasoned business owners in other countries.
Target Recipient Type and Size:
New Entrepreneurs (NEs): Individuals planning to start their own business or those who have started one within the last three years (micro, small, or medium-sized enterprise - SME).
Host Entrepreneurs (HEs): Experienced owners or board-level individuals of established micro, small, or medium-sized enterprises (SME) who have been operating for at least three years.
SECTOR-AGNOSTIC: This grant is open to businesses and individuals in any sector of the private economy.
Geographic Scope and Location Requirements: The program facilitates exchanges between entrepreneurs from EU Member States, the UK, and specific COSME countries (Albania, Armenia, Bosnia-Herzegovina, Iceland, Kosovo*, Moldova, Montenegro, North Macedonia, Serbia, Turkey, Ukraine), as well as EU outermost regions and overseas countries and territories. New Entrepreneurs must undertake their exchange in a country different from their country of permanent residence.
Key Filtering Criteria: New entrepreneurs must have a viable business idea or recently launched business (under 3 years old). Host entrepreneurs must be established SMEs with over 3 years of entrepreneurial experience. All applicants must meet specific residency requirements in participating countries.
Grant Frequency and Program Context: This is a continuous program with ongoing applications, part of the broader EU 'Small Business Act' and 'COSME' initiative, aiming to boost entrepreneurship and cross-border trade in Europe. It's an established, recurring exchange program.

Financial Structure

Budget Range for New Entrepreneurs:
Monthly financial support ranges from 600 EUR to 1200 EUR, depending on the country of stay.
The maximum total funding per New Entrepreneur for the entire exchange is 6 600 EUR.
Total Program Allocation (PARP): The Polish Agency for Enterprise Development (PARP) has an allocation of 477 360 EUR for financial support to New Entrepreneurs for the period 2023-2027.
Funding Rate: Up to 100% of eligible costs.
Matching Fund Requirements: No own financial contribution (wkład własny) is required from the New Entrepreneur.
Eligible Costs:
Travel costs (to and from the host country).
Subsistence costs during the stay abroad, including accommodation costs.
Ineligible Costs:
New Entrepreneurs cannot receive any form of remuneration or material benefits from the Host Entrepreneur during their stay.
Payment Schedule and Mechanisms:
Financial support is paid in installments by the Intermediary Organization (PARP for Polish NEs).
The first installment (equal to one month's support) is paid within 14 days of signing the agreement.
Subsequent installments are paid monthly upon submission of a written payment request and a summary of tasks performed during the previous month(s).
The final installment is paid after the submission and approval of the final report.
Financial Guarantees Required: None specified.
Tax Implications: The financial support received by the New Entrepreneur is considered income from other sources under Polish tax law and is subject to taxation. PARP issues a PIT-11 information form to the recipient.
Audit Requirements: Not explicitly detailed for beneficiaries, but receipts and documents confirming stay may be requested.

Eligibility Requirements

Organizational Eligibility for New Entrepreneurs (NEs)

Definition of 'New Entrepreneur':
An individual who is firmly planning to start their own business based on a viable business plan or a concrete project; OR
An individual who has recently started their own business and has less than three years of entrepreneurial experience.
The business can be in any sector.
Residency Requirements:
Must be a permanent resident in one of the participating countries (EU Member States, UK, Albania, Armenia, Bosnia-Herzegovina, Iceland, Kosovo*, Moldova, Montenegro, North Macedonia, Serbia, Turkey, Ukraine, EU outermost regions, OCTs).
'Permanent residence' is defined as: the place where the company is registered (if applicable); or if multiple establishments, where the entrepreneur is primarily based; or where the applicant has spent 183 days or more in the last 12 months (if no registered company).
Exclusion: Not eligible if currently living in a non-participating country, even if fulfilling other residency rules.
Business Plan/Project: Must have a concrete project or business idea reflected in a viable business plan.
No Minimum Age: While there is no formal minimum age, applicants under 18 are unlikely to meet the educational, business experience, and legal contract signing requirements.
Previous Participation: New Entrepreneurs can only participate once in the program.

Organizational Eligibility for Host Entrepreneurs (HEs)

Definition of 'Host Entrepreneur':
A successful and experienced entrepreneur (ideally owner of a micro or small enterprise) OR an individual directly involved in entrepreneurship at SME board level.
Must apply the EU definition of micro, small, or medium-sized enterprise.
Must have more than three years of entrepreneurial experience (not as an employee).
Must be committed to sharing their entrepreneurial experience and actively mentoring the New Entrepreneur.
Residency Requirements:
Must have their 'permanent residence' in an EU Member State or any of the other participating countries.
'Permanent residence' is defined as: the place where the company is registered.
Exclusion: Host Entrepreneurs currently residing in a different country from where their company is registered are not eligible.

General Exclusions and Requirements

Ineligible Entities: Entities subject to exclusion from financial support based on Article 6b, section 3 of the Act of 9 November 2000 on the establishment of the Polish Agency for Enterprise Development (applies to Polish applicants).
Legal Status: New Entrepreneurs applying from Poland must confirm they meet the definition of 'Młody Przedsiębiorca' as per §21, section 2 of the relevant Ministry of Development, Labor and Technology regulation.
Language Proficiency: Ability to communicate in a foreign language (at least B2 level, English is highly recommended) is crucial for successful exchange.

Application Process

Application Procedure and Stages

Continuous Recruitment: Applications are accepted on a continuous basis until funds are exhausted, or until January 31, 2027 (the official closing date for applications).
Online Submission: Applications must be submitted online via the Internet Management Tool (INZ) on the www.erasmus-entrepreneurs.eu website.
Application Language: The application form, Business Plan, and CV must be completed in English.
Selection of Intermediary Organization (IO): Applicants must choose an IO active in their country of permanent residence. For Polish applicants, PARP serves as the IO.

Required Documentation and Materials

For New Entrepreneurs (NEs):
Curriculum Vitae (CV): To be attached to the application, preferably in Europass format.
Business Plan: A comprehensive document outlining the business idea/project. Must include:
- Product/service description.
- Market analysis (target market, competitor analysis).
- Financial plan (estimated expenses and income for the next two years, break-even analysis).
Business Plan Summary: A shorter overview (up to 2000 characters), which will be publicly visible in the online database. Must avoid confidential information.
Declaration: A declaration confirming fulfillment of NE criteria and absence of disqualifying factors (for Polish applicants).

Application Processing and Review Timeline

Formal Evaluation: Conducted by the IO within 7 days of application registration.
Corrections: If formal errors exist, applicants are notified and must correct/supplement the application within 7 days.
Substantive Evaluation: Follows successful formal evaluation, assessing the Business Plan.
IO Initial Check: After submission, the chosen IO performs an initial check and takes action within a maximum of 2 weeks.
Application Statuses: Applicants are notified by email about status changes:
'Accepted': Application meets requirements, access to online catalogue granted.
'On Hold': Important information is missing or unclear; applicants have 6 weeks to provide it.
'Back to Applicant': Selected IO cannot accept or is terminating its contract.
'Refused': Application is inappropriate or irrelevant.

Implementation Timeline and Reporting

Grant Duration: The exchange period typically lasts between 1 and 6 months.
Flexibility: The stay can be completed in one continuous period or divided into several shorter slots (minimum 1 week per slot) spread over a maximum of 12 months.
Project Completion Deadline: The entire stay must be completed by January 15, 2027.
Key Milestones:
Application Submission: Online via INZ.
Matching: Access to the online database to find a Host Entrepreneur. IOs can also facilitate matches.
Commitment & Preparation: NE and HE prepare a 'Plan Pobytu' (Stay Plan) and an 'Erasmus for Young Entrepreneurs Commitment' document. The NE signs a financial agreement with their IO.
Induction Training: NEs receive training from their IO before traveling.
Implementation: The actual exchange period.
Reporting Schedule:
Monthly Summaries: NEs submit summaries of tasks performed for subsequent payment installments.
Final Report: NEs submit a final report in English via the INZ system after the exchange, describing activities, acquired knowledge, and benefits. This report is then approved by both NE's and HE's IOs.

Evaluation Criteria

Overall Evaluation Principles

Applications are subject to both formal and substantive (merit-based) evaluation.
Support is granted to New Entrepreneurs whose applications receive a positive substantive evaluation.
The selection process is continuous.

Formal Evaluation (Zero-One Based)

Checklist:
Application submitted via the online INZ platform.
Curriculum Vitae (CV) attached (preferably in English).
Business Plan attached.
Application and attachments prepared according to Support Office instructions.
Process: Performed by PARP staff within 7 days of registration. If incomplete, the applicant is requested to correct/supplement within 7 days. Failure to correct leads to rejection.

Substantive Evaluation (Merit-Based)

Focus: Evaluation of the submitted Business Plan.
Scoring: Business Plans are assessed against criteria, receiving a score from 0 (lowest) to 5 (highest).
Passing Threshold: To qualify for support, the application must achieve a total weighted average score of at least 3.4 points.
Evaluation Criteria Breakdown:
Product/Service Description (20% weight):
- Is the competitive advantage of the product/service described?
- Does the product/service offer value to the customer?
- Are necessary resources for product/service creation indicated?
- Is intellectual property protection described (if applicable)?
- Are risks identified and described?
SWOT Analysis (20% weight):
- Market description and size assessment.
- Defined target group/customers.
- Description of competition and market position.
- Barriers to market entry.
- Distribution channels.
- Promotion strategy for products/services.
Financial Analysis (20% weight):
- Forecasted revenues, costs, and profits for individual years of the plan.
- Expected break-even point.
- Planned sources of capital.
Benefits from Program Participation (40% weight):
- Are the described benefits realistic and measurable?
- Description of benefits for the applicant's development and their company.
Review Team: Performed by a two-person Evaluation Committee from PARP's Department of Entrepreneurship Support.
Clarifications: The Evaluation Committee may request additional information or clarifications regarding the Business Plan, which must be provided within 7 days. Failure to provide them means the evaluation proceeds with available information.

Compliance & Special Requirements

Regulatory Compliance

Legal Basis: The program operates under specific Polish (e.g., Act on the establishment of PARP, Ministry regulations) and EU (e.g., Regulation (EU) 2021/690) legal frameworks.
No State Aid: The support provided under this program does not constitute state aid, based on the European Commission's interpretation.

Data Protection and Privacy

Confidentiality: The full Business Plan submitted by New Entrepreneurs is a confidential document, accessible only to the applicant, their Intermediary Organization (IO), the Support Office, and the European Commission. It is not shared with other entrepreneurs.
Visibility: A summary of the Business Plan is visible to other accepted entrepreneurs and IOs in the online database.

Ethical Standards

Good Conduct: Host Entrepreneurs must meet requirements of 'good conduct', excluding those with proven grave professional misconduct, fraud, corruption, or involvement in illegal activities affecting EU financial interests.

Unique Aspects and Strategic Opportunities

Free Participation: Application and participation in the program are entirely free of charge for both New and Host Entrepreneurs.
Mentorship and Learning: The core of the program is hands-on learning and mentorship for new entrepreneurs by experienced ones, fostering practical business skills.
Cross-Border Exchange: Facilitates international collaboration, market access, and networking within Europe.
Flexibility: The exchange period (1-6 months) can be undertaken in a single block or split into shorter periods (min. 1 week), offering adaptability.
Support System: Beneficiaries are supported by dedicated Intermediary Organizations (IOs) in their home country and the host country, providing guidance, matchmaking, and logistical assistance.
No Remuneration: New Entrepreneurs are explicitly prohibited from receiving salary or other material benefits from the Host Entrepreneur, ensuring the focus remains on learning and exchange, not employment.
Tax Implications (Poland): Financial support received by Polish New Entrepreneurs is considered taxable income, for which PARP issues a PIT-11 tax information form.

Grant Details