Start-Up Nation: Ministry of Economy reviews the fixed assets threshold

Background to the change in the fixed assets threshold in Start-Up Nation

The Start-Up Nation programme is one of the most important Romanian government initiatives for encouraging entrepreneurship and the creation of new companies. By providing non-refundable funding of up to 50,000 euro, the state supports the launch of businesses with rapid growth potential. Among the conditions set by the economic recovery package of the Government led by Nicolae Bolojan, the value threshold for fixed assets that beneficiaries may purchase with this funding was changed from 2,500 lei to 5,000 lei. This change has caused a number of controversies among entrepreneurs who have applied or are about to apply to the programme.

The Ministry of Economy recently sent a reply to the StartupCafe.ro community, announcing that it will review this issue so that all companies accessing the funding receive fair and uniform treatment. This reaction shows that the authorities are open to adjustments that remove ambiguities and ensure transparency in the implementation of the programme.

Who are the eligible beneficiaries and what does the fixed assets threshold mean?

The Start-Up Nation programme is aimed at entrepreneurs who want to set up a new business, or who run very young companies, in a wide range of fields, from IT to manufacturing or services. For a company to access the non-refundable funds, it must meet a set of clear criteria:

• The company must be newly established or have no relevant economic activity before applying.
• The business plan must be feasible and demonstrate an impact on the economy, through jobs created and estimated turnover.
• There must be own co-financing, covering part of the investment costs.

The fixed assets threshold is the maximum amount allowed for spending on durable tangible assets that can be financed through the programme. The change from 2,500 lei to 5,000 lei means that companies can purchase equipment, machinery or other assets of higher value with non-refundable funding. This directly influences procurement strategy and the way entrepreneurs plan their investments.

Impact of the threshold change on entrepreneurs and the market

Raising the threshold to 5,000 lei brings logistical and financial advantages for companies, allowing them to purchase higher-performance equipment or fewer items, thereby reducing initial costs and the red tape involved in managing multiple purchases. However, this change may create an unequal situation between companies that applied before and after the change, especially if the method of application and the required documentation are not clarified in good time.

Beyond the financial advantages, the higher threshold helps the economy support more substantial investment in fixed capital, which can lead to greater productivity and competitiveness in the long term. It is important that the ministry provides a clear and uniform framework for all applications, avoiding confusion and the risk of later appeals from applicants.

What companies applying for Start-Up Nation need to prepare

Entrepreneurs interested in accessing this programme must be well prepared in terms of documentation and the business plan. In view of the change to the fixed assets threshold, it is essential to pay attention to the following:

• Correctly assessing the equipment needed and justifying the purchases in the business plan and in the documents attached to the funding application.
• Preparing invoices and proof-of-origin documents for fixed asset purchases, taking the updated threshold into account, to avoid inconsistencies and the rejection of costs during audit.
• Monitoring official communications from IRM and the Ministry of Economy for any clarifications and changes regarding the application of the threshold and the eligibility conditions.
• Consulting an EU funding expert or specialist consultancy to optimise the funding application and meet all criteria, especially as regards fixed capital.

Factors that can make the difference in accessing the funding and using it efficiently

In addition to clarifying the fixed assets threshold, companies should pay attention to a number of aspects that can increase their chances of success and the efficient use of funds:

• Realistic investment planning that reflects the real needs of the business for a minimum period of 3-5 years.
• Proper management of co-financing, to avoid excessive dependence on non-refundable funds and to demonstrate the financial soundness of the investment.
• Preparing reports and justifications after the project is implemented, so that they meet the control requirements for European and national audits.
• Using local resources and getting involved in community development, aspects with a social and economic impact that are valued when business plans are assessed.

The new rules on fixed assets should not be seen merely as a bureaucratic formality, but as an opportunity for entrepreneurs to strengthen their investment plan and make the most of the funding obtained. Careful monitoring of official replies from the Ministry of Economy and regular consultation with funding specialists will ensure a smooth implementation and help avoid unnecessary risks.

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