Q&A: European Union Grants Advisor Programme Gains Momentum and Extends to All EU Member States
Microsoft’s Fernando Campos explains how the initiative is helping public funds earmarked for economic development reach small and medium-sized enterprises.
PARIS — 30 March 2005 – Addressing the European Parliament in January, European Commission President José Manuel Barroso reignited the government’s commitment to releasing Europe’s “enormous untapped potential”. Five years ago, the European Union (EU) set out to do just that when it put forth its strategy to enhance Europe’s competitiveness for growth and jobs, which emphasised, in particular, the importance of spurring growth among small and medium-sized enterprises (SMEs). To this end, the EU as well as national, regional and local governments have set up thousands of grants to channel funds to smaller companies. The EU alone has made an estimated €117 billion available to SMEs for technology and related investment during the current budgetary period of 2000 to 2006.
Unfortunately, for various reasons only 45 per cent of SMEs in Europe are aware of the funds that are available to them, and only 4 per cent actually apply for funding. Of those that apply, only one-quarter are successful in their application and receive grant money.
Microsoft is working to help more SMEs obtain government funding through its EU Grants Advisor programme, in collaboration with technology companies, banks, consulting agencies and other organisations. To learn more about the EU Grants Advisor programme (EUGA), the EMEA Press Centre spoke with Fernando Campos, small business engagement manager at Microsoft EMEA, who leads the initiative.
EMEA Press Centre (EPC): What is the purpose of the EU Grants Advisor programme?
Fernando Campos: There are two main reasons that Microsoft developed and is investing in this initiative. We are committed to supporting SMEs around the world and particularly here in EMEA. SMEs are among Microsoft’s most important customers, so supporting SME growth is essential for us. Equally important, we hear President Barroso’s call to action loud and clear, to support the EU’s objectives to support economic development through public-private cooperation. We believe SMEs will drive job growth and innovation for the EU.
EPC: What are the programme’s components?
Campos: The programme addresses three issues. The first is awareness and information. We have identified more than 7,000 individual funding opportunities for SMEs in Europe, but many companies may not be aware of them. Our first step toward raising awareness has been to develop a database that provides companies with detailed descriptions of each funding opportunity, including which companies qualify and how the funds can be used. Usually, grant stipulations are tightly defined.
This leads us to the second issue, which is complexity. Many funding applications include up to 70 to 100 pages of technical specifications and requirements that the company needs to understand and address. Another component of the programme, therefore, is the involvement of independent consulting agencies — representing over 200 consultants who specialise in these kinds of grants — to help companies navigate the complex process. The consultants understand the full scope of the funding opportunities and know how to interpret the requirements. Microsoft covers the initial consultation cost and, after that, the SME pays the agency. But — and this is important — the fee is only payable if a positive outcome is achieved, meaning that the SME has secured the funding. All fees are negotiated up front between the consultant and the SME. It is also worth noting that many awarding bodies require that consultants be involved in the implementation of the programmes.
The third issue relates specifically to technology-focused grants. Many of these grants do not acknowledge technical problems or costs that could arise when a company implements new technology, for example, installing wireless connectivity on older computing systems.
So the third component is engaging other technology players, such as hardware and telecommunications companies, to work with governments to create the best grants. Each country will have its own consortium of organisations supporting this effort. Of course, the grants themselves are not under Microsoft’s control at all, but we believe that by collaborating with the funding bodies and other industry players, the consortia can improve the use of the technology grants so they truly help SMEs.
EPC: At Microsoft’s Government Leaders Forum in Prague in February, Microsoft EMEA CEO Jean-Philippe Courtois highlighted the programme’s broad availability. What is the history of EU Grants Advisor, and where does it stand now?
Campos: It was initiated nearly three years ago in Spain, with very good results. At that time we discovered that Microsoft subsidiaries in Poland and Hungary were engaging in similar activities. So we took the best of what the three subsidiaries were doing and created a common framework, which we are currently rolling out to 11 countries. Recently, we decided to extend the programme across the 25 EU Member States. Of course this will take time and planning, but Microsoft has committed to deploying the required infrastructure in every EU country.
EPC: Is there a single web portal where SMEs can go to access the programme?
Campos: While most SMEs in Europe have similar business pains and needs, we recognise that there are local differences, which is why we are creating a unique portal for each country, in the local language, that describes local funding opportunities in detail. We also know that companies may expand into new regions and be in a position to seek public funding in other countries. So every EU Grants Advisor portal will also offer summaries of the entire database of funding opportunities in English.
EPC: What kinds of organisations are involved?
Campos: Companies don’t buy software; rather, they seek complete solutions that include hardware, software, support, connectivity and services as well as financing. So the programme is designed around consortia made up of representatives from all of these business sectors. There also are SME intermediaries, such as chambers of commerce and business associations, that can contribute and represent their affiliates’ needs. We are happy to collaborate with these partners to help governments put IT-related grants within easier reach of SMEs.
Microsoft is establishing the EU Grants Advisor consortia — helping to get them started. But we do not run them. No single company in the consortia has all the knowledge and resources to manage this programme alone, and given that there are more than 20 million companies here in Europe, we had better do it together. A single consortium defines how it will engage with the governments and SMEs in its own country.
EPC: Does Microsoft see this programme as an opportunity to sell more of its products to SMEs?
Campos: Microsoft does a great deal of business in Europe, and a certain amount of public funding for SMEs will naturally flow through to purchase Microsoft® products. When IT deployment increases, Microsoft — as well as every other technology vendor — benefits. But I want to make this perfectly clear: if a company is seeking funding for a technology solution that does not include Microsoft products, our consulting agencies will support these customers equally. By no means do we influence their technology decisions through this programme. That is not the point. The point is to stimulate and support SMEs in their growth, success and increased productivity.
EPC: What are the results of EU Grants Advisor so far?
Campos: Over the past three years, the programme has only been fully in place in Spain. So we don’t have extensive data yet. We will be gathering data over the coming months. The governments of the EU Member States have been extremely positive about the programme, and we know we have increased awareness of funding opportunities. By using consultants through our programme, we know companies can reduce grant application time tenfold, which is amazing. Also, we’ve seen a rise in the percentage of companies that are receiving funding, as a result of a better understanding of grant specifications. Of course there’s a long way to go, but we’re moving in the right direction.
