Q&A

Who can apply for a Micro Grant? 

  • Pupils, students or PhD students enrolled for and following a full time education at an educational institution in Denmark. 
  • Pupils, students or PhD students who have completed their education or studies within the last 3 months at the time of the application (that is, the date of the deadline)
  • Applicants who are 18 years or older
  • Team/companies where at least half the members are pupils or students enrolled for a full-time education at an educational institution in Denmark
  • Teams with or without a CVR number can apply.

 

Applies only to applicants with a CVR number:

  • Your CVR number MUST be registered for the idea for which you are applying for a grant, and the CVR number must not be older than 12 months 
  • At least one of the co-founders of the company (registered as founder with the CVR number) must be a student
  • The applicant must ALWAYS be registered as founder/co-founder with the CVR number. 
  • Your startup must have had revenue of maximum DKK 50,000. 

 

What are we looking for? 

  • Students with the drive to create growth, to take the initiative and to be bold and innovative. 
  • Ideas on which the micro grant will have a substantial effect and that will get closer to the market.
  • Companies with a growth potential.

 

 

Two kinds of grant can be sought: 

  • Micro Grant for pupils or students with an idea at the idea stage - without CVR number.You can apply for max DKK 25,000 to cover the early expenses involved with starting up a business.  

  • Micro Grant for pupils or students who have just recently registered and received a CVR number. You can apply for max. DKK 50,000 all of which must be spent on reaching a stage of maturity that will allow you to attract other growth capital. This micro grant requires 25% self-financing in addition to the grant.

 

What can the grant be used for?  

Part of the application process is to submit a budget that shows what the applicant will use the Micro Grant forThe budget is therefore always adapted to the actual needs of the applicant. However, it is important that the Grant is used for activities that will make the idea or business come closer to the market, to proof of concept, growth or job creation. Therefore, these aspects will be taken into consideration in the evaluation of your application. The Micro Grant CANNOT be used for travelling or operation costs of the business (including hardware, salary for team membersrent of premisesoffice furniture or other equipment) or competitions.  

 

The Grant can for example be used for: 

 

  • Prototyping

  • Tests

  • Market research 

  • Pilot tests  for example rent of equipment or purchase of test tubes 

  • Counselling and guidance 

  • Patent application 

 

Can you apply for a Micro Grant when you start up a business abroad? 

No, you must start up your company in Denmark. But it is allowed to do business with foreign suppliers. 

 

Is the grant tax-free? 

No, the net amount is taxable (grant minus the 25% self-financing). All grants will be reported as B-income either through a cpr number or through the company's CVR number. 

We recommend that you contact your local SU-office or tax office for further information regarding tax when receiving a Micro Grant.  

 

VAT 

Vat (25%) is included in the amount that you can use for purchases. With a CVR number: The grant recipient can deduct VAT and tax according to the current regulationswhen the invoices have been issued to the grant recipient’s company. 

 

Budget: Do I need to report the company's expenses to the Foundation? 

Yes, the Foundation must accept the company’s budget, before you can use the grant. Therefore, in the budget you must report all the expenses for which you intend to use the grant. And it is important that you have checked the costs of the chosen services in advance to find the best offer. 

To avoid any misunderstanding when calculating your budget, please follow the Budget guide

 

How and when will the funding be transferred? 

  • The services mentioned in your budget are ordered from one or several suppliers. 

  • The invoice(s) from the supplier(s) should be issued to you/your company and must mention your Micro Grant number.  

  • The invoice is sent to the grant recipient, who checks the amount and text. The grant recipient forwards the invoice to the Foundation's accounts department: Anne Poulsen at anne@ffe-ye.dkand the Foundation will pay the invoice.  

  • Remember to clearly mark your grant number in the email, and please note that the bought services need to fulfill the requirements regarding what the grant may cover (see aboveWhat can the funding be used for?). 

  • If a service/product is bought outside Europe and the invoice comes from outside Europe, the micro grant recipient must pay the invoice. The Foundation will then reimburse the expenses when we have received documentation for the payment.  

  • Services or products bought must be the kind of purchase for which the grant was given. If you wish to change the budget after signing the contract, a new budget has to be accepted by the Foundation. 

  • To ease the administration of the grant, there must be max. 4 invoices. If you have bought several services from one supplierwe advise to collect all costs in one invoice to ease administration.  

  • You will not receive the grant in cash.  

 

Self-financingwhat is this? (only relevant for companies with a CVR number) 

When you apply for a Micro Grant to a CVR-registered company, 25% of the bought services must be self-financed (paid by the company itself). That is, you can buy services for the amount applied for + 25% self-financing. If you have applied for a grant of DKK 50,000, for exampleyou can buy services for a total of DKK 62,500 incl. VAT. Afterwards, the 25% must be paid back to the Foundation. That is, when all services have been paid for by the Foundation, the Foundation will require the 25% self-financing from you. 

Self-financing serves to ensure that you invest your own money in the company 

 

You are also welcome to pay your suppliers directly. In this case, you must send an email to the Danish Foundation for Entrepreneurship where you include a copy of the invoice and documentation for the payment. The Foundation will in this case pay 80% of the amount spent and deduct the self-financing directly.     

 

NB!A Micro Grant at the Danish Entrepreneurship Award does not require 25% self-financing.  

 

What is de minimis?  

If you receive a grant for a company with a CVR numberyou have to sign a statement about de minimis funding.  

 

According to the de minimis regulation, state support is allowed as long as the total de minimis funding to a company does not exceed EUR 200,000 (corresponding to approx DKK 1.5m) during a period of three financial years. 

 

That is, your company must not receive other state support that will cause the total funding (inclusive of the Micro Grant) to exceed the amount of approx. DKK 1.5m within a period of three financial years.  

 

When must the Micro grant be spent?  

The Micro grant must be spent not later than three months after you receive the commitment from the Foundation and sign the contract. 

 

Confidentiality – who reads our application? 

The Danish Foundation for Entrepreneurship shares the applications with members of the Evaluation Committee. Members of the Evaluation Committee may differ from one application round to the next. 

 

We recommend that applicants do not include valuable business insights (such as technical details about a new invention) in the business plan and only discuss business ideas at a general level. Only very rarely are business details crucial for whether or not the grant is awarded. 

 

Moreover, the Evaluation Committee members review a large amount of business plans every year, and many business plans resemble one anotherToo detailed business plans will therefore mean an extra work load for the evaluation committee members. 

 

Why do I have to answer your questionnaires and inform you of my cpr number? 

Your responses contribute to valuable knowledge about young entrepreneurs in Denmark, and we use this knowledge to improve conditions for young entrepreneurs in Denmark.  

 

We need your cpr number in order to be able to follow the results of the data collection over a longer period of timeWe collect this information for research purposes exclusivelyand your anonymity is absolutely guaranteed.  

 

Further guidance and advice

If you need further guidance, we recommend that you contact the student incubator at your educational institution. Find the relevant student incubator here