EUR 33 million to support entrepreneurship, youth employment and skills development
The Fund of Funds (FoF) and the Managing Authority of the Human Resources Development Programme 2021–2027 (HRDP) at the Ministry of Labour and Social Policy have signed a Financing Agreement. Under the agreement, the management of resources with a total budget of EUR 33 million is entrusted to the Fund of Funds, including close to EUR 11 million allocated for grants. This will enable more flexible and effective support for final recipients, as funding from the financial instrument and the grant component will be provided under a single contract.
The resources provided under the Human Resources Development Programme 2021–2027, co-financed by the European Union through ESF+, will be invested through equity and debt instruments under Priority 1 of the Programme – “Promoting employment and skills development”, and Priority 3 – “Promoting youth employment”.
The equity instrument aims to support enterprises at an early stage of development by encouraging self-employment, entrepreneurial skills and the economic activity of young people and vulnerable groups. The resources will be directed to start-ups, social enterprises and microenterprises, as well as to young people up to the age of 29, persons in a disadvantaged position in the labour market, Bulgarians returning from abroad and other entrepreneurs directly involved in the management of their businesses.
The resources for debt financial instruments are intended for investments in machinery, equipment and software, working capital necessary for the core activities or expansion of supported enterprises, as well as for financing training for young people up to the age of 29 outside the formal education system.
The agreement creates the conditions for expanding access to financing and for the sustainable development of entrepreneurship and employment in Bulgaria. Market consultations will follow in order to support the optimal structuring and implementation of the financial instruments.
