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HomeAutomation9 subsidies useful for DX|Introduction from application steps to application agency services!

9 subsidies useful for DX|Introduction from application steps to application agency services!

In Japan, where labor shortages are a concern, digital transformation is being emphasized in all industrial fields. DX (Digital Transformation) is attracting attention . Many companies are working to promote DX in order to survive the competition in a changing society.

However, there are many companies that have stalled their efforts to promote DX because it costs money to realize it.

This time, we will introduce 9 subsidies for DX and explain how to apply.

Table of Contents

  • Companies promoting DX should utilize subsidies
  • What is the difference between subsidies and grants?
    • Characteristics of subsidies
    • Features of the grant
  • 5 subsidies useful for promoting DX
    • IT introduction subsidy
    • Subsidies to promote productivity improvement in manufacturing, commerce, and services
    • Business restructuring subsidy
    • SME Digitalization Support Team Project
    • Strategic Fundamental Technology Advancement Support Project
  • 4 local subsidies
    • Nagano Prefecture – DX promotion project using advanced technologies such as AI and IoT
    • Yamaguchi Prefecture – SME DX Promotion Subsidy
    • Kumamoto Prefecture-IoT introduction plan formulation subsidy
    • Gifu Prefecture – shopping street DX business cost subsidy
  • 3 steps to introduce subsidies
    • (1) Check the eligibility/conditions for subsidy application
    • ②Submit an application form and undergo an examination
    • ③Implement the project and submit the report
  • Things to consider when using subsidies
    • Check application period
    • not intended to obtain subsidies
  • What is subsidy application agency service?
  • summary

Companies promoting DX should utilize subsidies

Subsidies are what companies want to use to promote DX. There are various challenges in promoting DX, and cost is one of them . In some cases, the existing system cannot support DX, and a large amount of cost is required to renovate the equipment and IT system .

In order to solve these problems, countries and regions provide subsidies. The advantage of subsidies is that they do not have to be repaid . It can be said that companies that want to promote DX but cannot afford to spend money should actively use it.

What is the difference between subsidies and grants?

The big difference between subsidies and subsidies is whether there are restrictions on the budget or number of projects.

Subsidies are budgeted and limited in number. Therefore, even if you apply, you will not be able to receive it unless it is approved by the examination. On the other hand, subsidies are almost guaranteed if certain conditions are met.

Characteristics of subsidies

Main provider National/local governments/organizations
Purpose of provision Launching new businesses and cooperation with local governments
merit
  • rich in variety
  • Wide range of payments
  • Wide coverage of expenses
important point
  • Strict review due to budget constraints
  • short recruitment period
  • it takes time to get paid

Features of the grant

Main provider Ministry of Health, Labor and Welfare (with local governments implementing their own)
Purpose of provision Employment increase and human resource development
merit
  • Since you can receive it if you meet the conditions, there are many things that do not have an examination.
  • Many of them have no fixed application period (applications can be made all year round)
important point
  • Popular grants require early application

5 subsidies useful for promoting DX

The following five subsidies are useful for promoting DX.

  1. IT introduction subsidy
  2. Subsidies to promote productivity improvement in manufacturing, commerce, and services
  3. Business restructuring subsidy
  4. Business restructuring subsidy
  5. SME Digitalization Support Team Project

I will explain each.

IT introduction subsidy

The IT introduction subsidy is a subsidy that partially covers the cost of introducing IT tools . The goal is to improve efficiency and increase sales . “IT introduction support business” will support the introduction, so you can work on DX with peace of mind.

  • subsidized

Eligible subsidies are for SMEs and small businesses (regardless of industrial field) , and conditions for capital and number of employees
are established for each type of industry and organizational form .

  • Subsidy amount and subsidy rate

In addition to the regular frame (types A and B) , a low-infection risk business frame (special frame: types C and D ) for companies working on non-face-to-face work to reduce the chances of person-to-person contact due to the corona crisis. ) .

Type A Type B Type C Type D
subsidy rate Within 1/2 Within 1/2 Within 2/3 Within 2/3
 Subsidy amount 300,000 to
less than 1.5 million
1.5 million to
4.5 million or less
300,000 to
4,500,000 or less
300,000 to
less than 1.5 million

 

Subsidies to promote productivity improvement in manufacturing, commerce, and services

We support the development of new services and the improvement of production processes with the aim of improving the productivity of small and medium-sized enterprises .

  • subsidized

SMEs and micro businesses that are expected to grow and increase earnings Conditions for capital and number of employees
are set for each industry .

  • Subsidy amount and subsidy rate

The general type subsidizes equipment necessary for service development and improvement of production methods, the global type subsidizes capital investment for the expansion and strengthening of overseas business, and the business model type subsidizes large companies supporting small and medium-sized enterprises . It is divided into 3 parts.

General type Global type business model type
subsidy rate SMEs: 1/2
Small businesses: 2/3
SMEs: 1/2
Small businesses: 2/3
Maximum subsidy amount 10 million yen 30 million yen 100 million yen
  • Points of review

Since the company’s growth potential and the amount of wage increases for employees are emphasized, companies that reduce the following points will be advantageous.

  • small company size
  • company has just been established
  • Strong financial base

Business restructuring subsidy

This is a system to support new business development and business conversion in order to respond to social changes caused by the coronavirus epidemic .

  • subsidized

SMEs, small business owners, corporate unions, etc. in a difficult situation due to the corona disaster

  • Subsidy amount
normal frame graduation frame Global
V-shaped recovery frame
subsidy rate SMEs: 2/3
Small businesses: 1/2
SMEs: 2/3 Small businesses: 1/2
Subsidy amount 1 million to 80 million yen 60 million to 100 million yen 80 million to 100 million yen

SME Digitalization Support Team Project

In order to enhance support for digitization and the utilization of IT technology for SMEs and micro businesses, we introduce IT specialists and bear part of their costs .

  • subsidized

SMEs and micro businesses who want to work on digitalization

  • Subsidy amount

Subsidize up to 3,500 yen/hour (tax included) out of the compensation paid to IT professionals

Strategic Fundamental Technology Advancement Support Project

This is a support project aimed at upgrading basic manufacturing technology in order to strengthen the international competitiveness of the manufacturing industry and create new industries . We support research and development and market development for that purpose .

  • subsidized

An individual company cannot apply, and it is necessary to create a community centered on small and medium-sized enterprises.

  • Subsidy amount
Small and medium-sized enterprises Universities, public examinations, etc. SMEs with  taxable income of 1.5 billion yen or more
subsidy rate Within 2/3 Fixed amount Within 1/2
Maximum amount of subsidy (year) 45 million yen 45 million yen 45 million yen

4 local subsidies

The following four subsidies are available in the regions introduced this time.

  1. Nagano Prefecture – DX promotion project using advanced technologies such as AI and IoT
  2. Yamaguchi Prefecture – SME DX Promotion Subsidy
  3. Kumamoto Prefecture-IoT introduction plan formulation subsidy
  4. Gifu Prefecture – shopping street DX business cost subsidy

I will explain each.

Nagano Prefecture – DX promotion project using advanced technologies such as AI and IoT

We will subsidize projects that utilize AI and IoT to solve problems faced by companies in the prefecture .

  • subsidized

A business that uses AI and IoT to improve the productivity of business activities such as production processes and business management processes

  • Subsidy rate/subsidy amount
Utilization of IoT Subsidy rate: Within 1/2
Maximum subsidy amount: Within 1 million yen
Utilization of AI Subsidy rate: Within 1/2
Maximum subsidy amount: Within 2 million yen

Yamaguchi Prefecture – SME DX Promotion Subsidy

We support the construction of information processing systems aimed at improving productivity and transforming existing businesses, with the aim of promoting the sustainable development of small and medium-sized enterprises in the prefecture .

  • subsidized

Among SMEs with main offices in the prefecture, companies that have a DX promotion plan that increases the added value by an average of 3% or more annually. Added value (operating income + personnel expenses + depreciation expenses)

  • Subsidy rate/subsidy amount
Subsidy rate: Within 1/2
Maximum subsidy amount: 1.5 million yen

Kumamoto Prefecture-IoT introduction plan formulation subsidy

We will support the introduction and utilization of digital technology, mainly IoT, to improve the productivity of companies in the prefecture and add value to products and services .

  • subsidized

Companies/groups with offices or factories in the prefecture

  • Subsidy rate/subsidy amount
Subsidy rate: Within 1/2
Maximum subsidy amount: Within 1 million yen

 

Gifu Prefecture – shopping street DX business cost subsidy

With the aim of attracting young people and inbound tourists and revitalizing shopping streets by increasing consumption, we are supporting the prevention of the spread of new coronavirus infections by reducing opportunities for contact with people and cash accompanying the digitization of shopping streets.

  • subsidized

Shopping District Promotion Association, Federation of Shopping District Promotion Associations, Other Shopping District Organizations, etc.

  • Subsidy rate/subsidy amount
Subsidy rate: Within 2/3
Maximum subsidy amount: 1 million to 10 million yen

3 steps to introduce subsidies

In order to introduce subsidies, it is necessary to go through the following three steps.

  1. Find out who is eligible/conditions for applying for grants
  2. Submit your application for review
  3. Carry out the project and submit the report

I will explain each.

(1) Check the eligibility/conditions for subsidy application

First, check the application conditions to see if your company is eligible to receive subsidies . Since there are many cases where the target is limited, such as the size of the company, it is necessary to research before applying.

②Submit an application form and undergo an examination

Obtain and fill out the necessary application forms to receive assistance. Be prepared for cases that require a lot of documents or documents that take a long time to process, so let’s work on them with plenty of time before the deadline.

③Implement the project and submit the report

If you are selected for a subsidized project, let’s proceed with the project according to the plan. Grants are generally paid after project completion.

Even after being selected for a subsidized project, it is important to act in accordance with the project plan, as the subsidy amount may change due to post-project surveys . Larger grants may require multiple years of reporting.

Things to consider when using subsidies

When using subsidies, it is necessary to pay attention to these two points: ” check the application period ” and ” do not aim to obtain subsidies “.

I will explain each.

Check application period

Some subsidies have a short application period or are closed on a first-come, first-served basis. It is a good idea to get information on the official website in advance, such as “When did you recruit last year?” and “How many companies were selected?”

not intended to obtain subsidies

As noted in the process for implementing grants, work performed with grants must be reported upon completion.

As a result, many companies end up making a loss-making choice, such as introducing an unanticipated system with the goal of receiving subsidies .

Let’s choose a subsidy system that can be used with an awareness of the original purpose.

What is subsidy application agency service?

Applying for subsidies takes time and effort, such as preparing documents. For this reason, it is difficult for small companies to carry out the application work in parallel with their daily work .

Therefore, I would like to use the “subsidy application agency service” . If you ask a professional to apply, you can apply for subsidies without worrying about your daily work.

Although it has the disadvantage of being expensive, it is recommended because it allows you to apply for subsidies efficiently .

summary

How about using subsidies for companies that say, “I want to promote DX, but I haven’t been able to do it because of cost issues.”

In addition to the ones introduced here, there are many subsidies provided for small and medium-sized businesses and small businesses. Let’s check the conditions such as the target and find the system that suits your company.

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