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Nov 21, 2019

Digital Welfare Capital Program launches HUF 7.5 billion fund

Micro, small and medium-sized enterprises can now sign up for the HUF 7.5 billion Digital Welfare Capital Program.

Micro, small and medium-sized enterprises can now sign up for the HUF 7.5 billion Digital Welfare Capital Program. “The requested amount [per company] may be between 10 and 500 million forints,” said Tamás Schanda, State Secretary at the Ministry of Innovation and Technology (ITM).

“They are not primarily looking for IT companies, but for companies seeking digital development that strengthens their competitiveness,” Schanda said, adding that “SMEs and startups whose goals are in line with the strategic goals of the Digital Welfare Program, the development of digital infrastructure, digital competences and the digital economy, and the creation of a digital state are worth applying.”

Launched by the Hungarian government at the end of 2015, the Digital Welfare Program aims to make every citizen and business in Hungary winners in the new digitalization era. In Hungary, the process of digitization has recently been accelerated which has been supported by the actions taken under the Digital Welfare Program. Strategies determining the direction of digital development in the future have also been completed under the scheme.

According to Hungarian Insider, in addition to making the internet accessible and affordable for all, the Digital Welfare Program has aided infrastructure development, digitalization of education and other activities to make Hungary more prepared for the upcoming digital transformation.

In light of the above-mentioned developments, the Hungarian government decided in the summer of 2017 to expand the Digital Welfare Program and to adopt the Digital Welfare Program 2.0.

The new program is a strategy for gaining digital advantage, as it formulates programs to support digitization in almost every area of the digital economy, state operations and Hungarian society.

Hungarian companies can now apply for the current Digital Welfare Capital Program, the duration of the investment is between two and seven years and the investor acquires no more than a 50 percent stake.