Interview with Julián López-Arenas, Director of Competitiveness of the Spanish Chamber of Commerce

With the aim of supporting 1.100 companies

Chamber of Spain launches aid program for exporting SMEs for their diversification abroad.

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La Chamber of Spain has released a aid program for exporting SMEs for diversification in foreign markets. The program, co-financed by the recovery and resilience mechanism (MRR), has a budget of 11 million euros and aims to support 1.100 companies. The program is divided into two lines of action:

 

• Certification line: finances up to 80% of the costs of obtaining voluntary or mandatory certifications that improve the company's competitiveness in foreign markets.
• Mentoring line: offers personalized advice to companies from mentors from large companies with experience in internationalization.

 

All SMEs that are already exporting to Spain can participate. foreign markets can participate in the program. The only requirement is that its global turnover is at least 10 million euros. The micro-SMEs (with a turnover of less than 1 million euros) are excluded.

Julián López Arenas, responsible for Competitiveness of the Spanish Chamber of Commerce, explains what the advantages of the program, its format and details are throughout the interview. You can read the full transcript of the [Video] of the interview below:

What is the objective of the program?

 

Julián López Arenas: The objective of the program is fundamentally to support exporting companies in their diversification into markets, Currently the percentage of exports to the US is 64 65% and we consider that there are very attractive markets outside the European Union. This program is aimed at this with a large package of economic aid, all financed with the recovery and resilience mechanism launched after the Covid and that they will support the consolidation of internationalization in markets outside the EU of exporting companies. The objective, I repeat, are already exporting companies. It is not a support program for the initiation of the internationalization of Spanish SMEs, but we are already talking about companies that have already started on that path, that have a certain path and what we want is to support them in this consolidation of markets outside the EU.

 

 

How many SMEs is it aimed at and what type of sector mainly?

 

JLA:  To any type of sector, service companies, companies, product companies, and the program encompasses 1100 helping capacity for 1100 companies. Initially, the mentoring program is divided into two lines of action. The first line is a certification line that attempts to support a maximum of 450 companies and the second line of action, which is mentoring, mentoring itself, advice itself through mentoring, as it supports a maximum of 650 companies.

 

In general, what does this program and its two lines of action consist of? 

 

JLA: It consists of favoring and financially supporting companies in obtaining certifications that serve to improve the competitiveness of the company, especially voluntary or non-voluntary certification lines. It is a powerful trustworthy tool in international clients, that's why we support it even with a financial endowment. We are talking about €25.000 at 80% aid, it remains at €20.000. I want to clarify that it is up to €25.000 of expenditure, that is, if the investment is €10.000 then it finances 8000, but we are talking about 80%, that 80% is aid at the national level, unlike other financing mechanisms such as the structural ones in SPRING that is supported, the VA financing rate depends on the region where the company is located. The Community of Madrid is not the same as Andalusia, for example. Here yes, here it is uniform. The MRR mechanism does not establish different co-financing rates and here we have decided on a very attractive rate in collaboration with the Secretary of State for Commerce, which is the one that has given us the funds for this 80% program throughout the national territory. This is the line of certification that we could highlight two objectives the objective two two more than two objectives, two types of certification.

 

The obligatory one, which of course is eligible, for example, is to register your company's products in the American FDA. Obviously, if you want to export certain products to the United States you have to be registered with the FDA. The registration itself is cheap, but the tests, the sample shipments, etc. All of this makes the registration more expensive and is financed by the program and above all the las. Let's say, the line of certification is voluntary, with the company arguing that a certain certification from any certifying institution can improve the competitive position or improve the position of the company in a market. Certain non-European Union countries would obviously be eligible for this program. This is the certification line. The Mentoring line is different. This line has two phases. The first phase, which is mentoring, is a mentor, it is a position for mentor companies that have signed up to the program. The Chamber of Spain has invited the members and partners of the Chamber of Spain. They are large companies, since the most internationalized companies are members of the Spanish Chamber and may not be members of the Spanish Chamber. We have started with them, as they have provided management personnel with experience in internationalization to serve as mentors to the SMEs who are beneficiaries of the program.

 

Once this advice is given, which establishes an action plan, it is not an initiation, it is not a internationalization plan, it is simply a series of tips reflected in an action plan to see how they can consolidate themselves in the market in which they are exporting, in which they are already internationalized. And once that plan is approved by the Chamber of Spain and by the mentor, the execution period is two months. It is very brief, even in a month you can perfectly carry out this small action plan, as you move on to the aid phase, which is a powerful aid phase. It is a phase of up to €32.000 of expenditure financed at 80%, the same as the certification line and we would reach a maximum of €28.000. These are aids that, at least in the FEDER area, from other programs with other funds, have never been so powerful. Well, they occurred before the 2008 crisis, but they have not been seen for many years, so we consider that it is a good aid package, multiple eligible expenses all to implement that action plan that has been developed together with the mentor . That is what the program for 650 companies would practically consist of.

 

 What is the concept of international mentoring proposed by the Chamber and what does it consist of?

 

JLA: eThe concept of mentoring that we provide or that we try to achieve with this program is simply that an executive with extensive experience, with more than five years of experience in international markets of a large company, transfers market knowledge and experience to SMEs. , to SMEs that are already exporting, that want to consolidate and that perhaps lack that advice, let's say. This has to be reflected, as I said previously, in an action plan and then validated by both the mentor and the Chamber of Spain and then access a powerful aid package. This aid package will also be supervised by the mentor and will also analyze how, let's say, the company's investments in the target market are taking place. It is within a period of six months, that is, in total the program is fast, it is agile because well, the pressure of the execution of the MRR establishes it and then in six months the company has had to invest the package that we have made available to them and from there a justification phase begins, since they are public funds and everything must be justified, everything must be justified properly, as it cannot be otherwise.

 

What type of SMEs are best suited to participate in the program?

 

JLA: Well, they are the most suitable SMEs. They are all, that is, all, that are already exporting. They are perfectly, let's call it that, eligible or can apply for the program. The important thing here is that you apply as soon as possible because the aid is limited to 450 and 600. The budget is limited. Is it true that we can request an extension? Possibly there will be one by 2024, but we must be aware that the certification line has already begun. The publication of the call was made in June, at the end of June and is underway. Currently there are more than 200 companies that have requested it, up to 450, since we still have it. We have room to continue admitting companies that request this line. The advisory mentoring line is slower because first we have had to recruit the mentor companies, which is an open process this year and next year we have already recruited, approximately, companies that have given up their management teams, approximately about 100 mentors, there were 90 mentors yesterday. We will continue recruiting because each mentor can mentor more than one company up to a maximum of five. Well, this is how the program works and the call will come out next Monday.

 

On Monday, October 16, the call for SMEs will go out. From there they have to make the request. We consider that the company is optimal, that the only requirement. I have said that all of them are valid, but the only requirement that we really put on each of the lines is a minimum billing. We want them to be companies that have already exported, that are exporters and well, we simply ask for a. In the case of mentoring, a minimum volume of global turnover of the company of 10 million and can be a maximum turnover of 1 million if they manage to present or if they demonstrate that they have carried out an initiation plan for internationalization through. Well, through ICEX, that is, the famous ICEX Next or through cameras, our expanding initiation program. If the company, the SMEs, has carried out one of these two programs is him. Let's say the turnover requirement is reduced from 10 million to 1 million. And as for the line of certification, the maximum turnover required of SMEs is 1 million, micro-SMEs with less than 1 million turnover are excluded.

 

What advantages do you think the program offers for beginning SMEs? 

 

JLA:  The advantages for beginner SMEs that are not so beginners if they meet these turnover volumes are financial resources. That is, at the end of the program I have been saying it. The aid package is powerful both in certifications. In the end, certifications improve your competitive advantage. That is a reality. Does it provide confidence in the consumer or in the distributor? We are talking about volunteers, which I believe gives you notoriety as well, so it gives you an advantage. The program allows you to improve your competitive advantage, certification and mentoring, well it is obvious, it gives you the experience, the vision of a person who has experience in the market, who has experience in internationalization, in consolidation of a great company, well let's say that it is willing to give you recommendations on how things have gone well for it, what mechanisms it has used and on top of that it also gives you an aid package of up to €28.000 to put them into practice and to be able to invest in the target market , that the fundamental objective is consolidation, that is, improving, increasing and developing in the target market.

 

What challenges may SMEs encounter when participating in the program?

 

JLA:  challenges to participating in the program None. That is, the only requirement is to have a minimum billing volume that is required in the calls for one line or another, but they really do not have any challenge. It's very easy, it's first come, first served. The first requests that arrive first in first out are attended to. That is, it is a very simple mechanism. You meet the requirements, you are admitted to the program and you begin to be valued first. No, the only thing you have to do is meet the requirements that, let's say, being an SME obviously and let's say that it may be more difficult to meet for certain companies that want to submit applications to these two programs or to this program with two lines, it is the billing that has been established as a requirement to differentiate those companies that already have certain experience, that are already in the markets and that can already present certain equipment in a case to assume the knowledge of an expert. In another case, then to be able to carry out the certification and the requirements required by the start-up and obtaining a certification.

 

What recommendations would you give to SMEs considering participating?

 

JLA:  The fundamental recommendation is to run, because you will run out. They are funds that have come from Brussels, that have come to be executed, that we want them to be executed. They are funds with an amount of aid that is not normal in what has been developing since 2008. In support for internationalization, internationalization had been supported with many counseling and monitoring programs. Sometimes it helps, but it is limited financially. Almost all concepts that can help you improve your service or its export at destination are subsidized here. And we believe that it is very important that companies take advantage of this opportunity because later, when the MRR runs out, we will return to the traditional mechanism. Well, that's it, it is working in parallel with the ERDF structural fund programs that effectively also provide aid, but more economically limited from another structure. The justification time in structural is much greater here than the execution time in SPRING Because Brussels has limited it in 2026, everything has to be more than just certified. The process that we have designed here is despite the fact that they are public funds, we have limited the bureaucracy to the maximum, to the maximum, what the General Law of Subsidies allowed and the justification is going to be very fast and the companies are going to collect the payments very quickly. helps.