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1.3.1.1.7. „Support to create new jobs”

1.3.1.1.7. „Support to create new jobs”. Existing support for job creation. 1.3.1.2. „Support for self-employment and business start-ups” Small number of companies involved or founded during the program

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1.3.1.1.7. „Support to create new jobs”

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  1. 1.3.1.1.7. „Support to create new jobs”

  2. Existing support for job creation • 1.3.1.2. „Support for self-employment and business start-ups” • Small number of companies involved or founded during the program • Amount of public financing is small (loans up to 54 000 lats), therefore newly established companies within the programme are small, with less than 10 employees. • 2.1.2.1.1. „Competence center” • Program is primary oriented to strengthen collaboration between scientific organizations and industry partners to achieve mutually beneficial goals • There are only six Competence centers. • It is planned to create at least 50 research and development related jobs within Competence centers. • New job creation is also indirectly supported in activities: 2.3.2.1. „Business incubators” and 2.3.1.2. „Measures to encourage innovations and business start-ups”

  3. Necessary support for new job creation • Ministry of Economics proposal for new support program: • There is a need for permanently available support mechanism for new, well-paid job creation • It is necessary to support creation of new jobs primary in regions • New job creation must be encouraged not only in target industries, but also by supporting setting up of support centers by large companies • Investment projects must be evaluated primarily focusing on following: • Project preparedness; • Project contribution to economy; • Employees average income.

  4. Financing for job creation Necessary financing to launch the program: • Necessary amount of financing for program - 7 000 000 lats (12 000 lats per one work place) • Expected number of created jobs within the program - 1000 Next steps: • Criteria to be approved on 16th of June in EU funds Monitoring Committee • Cabinet of Ministers regulations will be approved by the end of 2011. • Necessary financing will be allocated from 1.3.1.1.4. „Support to training for employed for enhancing competitiveness of enterprises - support to individually organized training by enterprises”where are available 15 341 375 lats.

  5. General questions • Goal • Foster creation of new jobs. • Project selection procedure – Open project selection procedure • Beneficiaries – Companies • Support to companies is given according to Commission Regulation (EC) No.800/2008, (General block exemption regulation) • Project execution is till 2015 • New program supplements „Business incubator”, „ Support for self-employment and business start-ups”, „Competence Center” and „Measures to encourage innovations and business start-ups” programs

  6. Description of program • Maximum public co-financing – 12 000 lats for each newly created job in next 24 months • Aid intensity - 50%. • Financing is provided to companies, which create at least 50 new jobsand invests at least 5 million EUR (3.5 million lats) or project applicants group of related enterprises equity is at least 355 milj. EUR (250 milj. LVL). Aid is given for those jobs which are directly linked with the investment and salary is 20% higher than the average in Latvia. • Project realization – max., 2years

  7. CRITERIA OF QUALITY ACCEPTANCE • 1.quality criterion– Preparedness for implementation of planned activities; • 2.quality criterion– Project applicants ability to raise necessary financing; • 3.quality criterion - Applicants employees monthly average incomeduring the project; • 4.quality criterion– Project implementation industry; • 5.-9.quality criteria- Horizontal priorities.

  8. Thank You for your attention! Brīvības iela 55, Rīga, LV 1519Tālrunis: 67013101Fakss: 67280882E-pasts: pasts@em.gov.lv Mājas lapa: www.em.gov.lv

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