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 |
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| important point |
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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 |
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| important point |
|
5 subsidies useful for promoting DX
The following five subsidies are useful for promoting DX.
- IT introduction subsidy
- Subsidies to promote productivity improvement in manufacturing, commerce, and services
- Business restructuring subsidy
- Business restructuring subsidy
- 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.
|
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.
- 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
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.
- Find out who is eligible/conditions for applying for grants
- Submit your application for review
- 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.
