Financial Benefits from Public Authorities other than Subsidy
Topic of the practice
Support to SMEs
Good Practice Information
A few incubators receive financial benefits from local public authorities. For example, coFWD receives an exemption from property tax for the Project 161 building, but otherwise it does not receive any public funding. In other cases incubators located in publicly owned buildings benefit from reduced rents.
Obviously this costs public authorities money, just direct subsidies would, but this indirect funding is likely to be more acceptable if support of incubators is an issue of debate. Policy-makers may also relate indirect funding to the incubators’ use of vacant buildings or its contribution to neighbourhood improvement
Evidence of success
Reduced the cost burden to the start up organisation. Utilised 1 unused building for public benefit. Created and safeguarded 25 jobs, reduced the tax burden on the owner of the building. Encouraged property owners in the region to bring disused buildings back into public use.
Contact details to obtain further information on the practice
Annex completed on: 05-20-2015