This document discusses funding sources for eco-innovation in small and medium enterprises (SMEs) in the tourism industry. It identifies various public and private funding sources that SMEs can utilize, including grants, loans, crowdfunding, venture capital and more. The document provides steps for SMEs to identify needs and objectives, find suitable funding sources, develop proposals and projects, and submit applications. It also discusses important considerations for the application process and maintaining effective ongoing communication with funders.

1. The European Commission support for the production of this publication does not constitute an endorsement of the contents, which solely reflect the views of the
authors. The Commission cannot be held responsible for any use which may be made of the information contained herein
IM 6.2 Funding of Eco-Innovation in SMEs

2. Learning Outcomes
The Learner will be Able to Identify Public and/or
Private Funding Sources for Eco-Innovation in SMEs
in the Tourism Industry.

3. How to Get Started?
Steps for Funding of Eco-Innovation in SME
• Identify needs, goals and objectives of eco-innovation
• Identify funding sources
• Develop the proposal and project
• Submit proposal and project
• Follow-Up

4. • Internal - is funded from different subsidiaries, regional or departmental budgets
• External funds are treated as the finances of key stakeholders and are taking into
account their interests too
• Self-Funding – is single department budget
There are External, Internal and Self Funding Resources

5. Important Sources of Funding for Eco-Innovation in SMEs are
• Your own funds, Self Financing, Equity;
• Budgetary Financing;
• Family and friends;
• Credit, Debt;
• Business angels;
• Venture capital;
• Project financing;
• Mixed financing ;
• Crowdfunding, etc.

6. Sources Classified according the Funding Areas
Funding
Areas
Public - banking, insurance, start-ups,
investors, consulting, academia and research
institutions, traditional Bank, crowdfunding
platforms, crowd funding campaign, Venture
capital, International Funds, grants, etc.
Private - Credit card, Personal and Business
Loans, investors, etc.
Own money - Cash flow, Independent income,
Personal saving, Inherited funds, etc.

7. There are Different Methods of Financial Support for Eco-Innovation in SME

8. How to Apply for Funding?
• Check the information about grantsmanship and funding resources,
get special trainings and workshops for learning how to get the fund
• Check the funding sources around
• Pursue several potential funders, successful search are greater
when you approach a variety of funders. Maintain a journal of what
organizations you have contacted and when. Each grant program
will probably have a different set of deadlines, so it is helpful to
have a master list
• Contact the information center for consulting. They may direct you
to potential funding sources.

9. Grantsmanship and Funding Resources
Public Funding
• Research grants
• Demonstration grants
• Project grants
• Block grants
• Formula grants
Private Funding
• Private foundations
• Corporate foundations
• Community foundations
• Direct giving programs
• Voluntary agencies
• Community groups

10. Grantsmanship Consists From Three Phases:
• Preliminary planning and research
• Effective proposal writing
• Proposal follow-up
Organize the comparative analysis of all the methods of financial support,
that should be relevant to the main goals of eco-innovation in SME to
select/or create the best funding resource or their composition
for eco-innovation in SME
Proposal and Project

11. Questions that could be Considered in the Funding Process
• What do you need for eco-innovation from sponsor?
• How address eco-innovation to the problems in SME?
• Who apply for funding?
• How it is possible to obtain the information about potential funders?
• What are the goals and objectives of the program?
• What are the priorities of the program?
• What are the budget requirements in the program?
• What type of proposal format should be used? Is SME consistent with the funder's application deadlines?
• Who is the contact and responsible person for the project in SME?
• Was the proposal granted, if yes - why?
• Was the proposal rejected , if yes - why?
• Is there a possibility of submission for already revised proposal again?

12. To be Determined the most Effective Way of Project Funding Incorporation
• Some practices for eco-innovation funding started up front and carefully
are managed over the whole lifecycle of the project
• Some projects are granted step by step, after the accomplishment of
milestones.
• Define the main goals and mutual benefits of receiver and investing for
eco-innovation in SME
• Compare internal and external funding sources for the eco-innovative
ideas in SME.

13. LinksPROJECT FUNDING REQUIREMENTS TEMPLATE
https://www.projectmanagementdocs.com/template/project-documents/project-funding-requirements/#ixzz61EjbCgbX
Cash Flow Management Strategies for Small Business
https://www.youtube.com/watch?v=IB2qqDQ66iA
Your Guide to Understanding Crowdfunding
https://www.youtube.com/watch?v=voF1plqqZJA
5 Sources of Funding for Your Small Business
https://www.youtube.com/watch?v=Yh_OfWuWh5I
ETF and the Small Business Act
https://www.youtube.com/watch?v=Byf1P7V_gCg
Funding Animated Explainer
https://www.youtube.com/watch?v=uIu4lmBQYUY
EU funding for your project?
https://www.youtube.com/watch?v=P62sjnHL59w
European Investment Bank | Explainer Video Animation for SMEs
https://www.youtube.com/watch?v=EN2HT1hsf18
Government supports for SMEs
https://www.youtube.com/watch?v=PQvhq55MJTk
SME Working Capital Loan
https://www.youtube.com/watch?v=TApfOVKldJM
Sources of Funding for Startups and Small Business
https://www.youtube.com/watch?v=v3x1dENtPd8

14. Project web-page: http://Eco-Innovation -mode-project.eu/
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