Public Business Subsidies and Grants

Each year, funds are allocated in the state budget for promotion of entrepreneurship. Public business financing is regulated by national and European Union level legislation. A substantial part of the subsidies arising from public policy relating to entrepreneurship and promotion of entrepreneurship is financed through the regional development programs managed by the European Regional Development Fund. Most of the funding is channeled through ELY-Centres (Centres for Economic Development, Transport and the Environment). Subsidies are also granted to the R&D projects managed by Business Finland (formerly known as Finnish Funding Agency for Technology & Innovation), as well as the interest subsidies and credit loss compensations granted by the state-owned specialized financing company Finnvera Oyj, and its subsidiaries.

The ELY-Centres are service centers jointly established by the Ministry of Employment and the Economy and the Ministry of Agriculture and Forestry. There are 15 ELY-Centres in Finland. The ELY-Centres provide advice and guidance to businesses and seek to promote the establishment and expansion of competitive enterprises. The centers provide financing for investment and development projects of businesses.

On a regional scale, the state provides region-specific regional development grants which are managed by the Regional Councils. Businesses are able to obtain subsidies allocated from the regional development grants for financing of investments and operating capital, and operational development.