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Why do companies internationalize?

It is common for companies to internationalize. Some entrepreneurs just think at a certain moment: “I need to get out of this country to truly realize my business’s potential?” Well, they’re not the only ones. However there is only a small group (0,4%) that successfully crosses the borders, there are still reasons to go abroad.  We are left with the question: “Why do companies internationalize if the successful percentages seem to be that low?” In this blog we will talk about one of the several reasons.

The Dutch Ministry of Foreign Affairs has realized that many companies are having international aspirations. By coming up with the DHI subsidy, they are hoping to address those international dreams. Let’s find out what the DHI subsidy is, and why is this particular subsidy so interesting if you want to internationalize?

Would you like more information?

Internationalize possibilities thanks to three modules.
Internationalize_Business

For the DHI subsidy, you don’t have to be eligible for all of the modules to internationalize. It is most likely to start with one of the modules.

  1. Demonstration projects: Focused on the operation of your invented technology under local conditions. This should happen in one of the discerned DHI countries. (Companies can receive up to € 200.000)
  2. Feasibility studies: If you want to export your product abroad. Convince a potential international buyer to invest in your product using your business plan. This is to assess the profitability of foreign investment in your products. (Companies can receive up to € 100.000)
  3. Investment preparation projects: Setting up a facility or acquiring a business. Clarification on the most important details in the business plan to be carried out for the intended investment. Hereby you (a company in the Netherlands) assess the technical and commercial profitability of an investment in a DHI country-company. (Companies can receive up to € 100.000)

What eligibility criteria are required to internationalize with the DHI?

To internationalize with the help of the Ministerie you’ll have to match the following checklist. Hence, please observe the criteria below:

  1. You need to be an SME entrepreneur
  2. You need to have an international ambition and an aspiration to market your projects in emerging markets
  3. Companies in Bonaire, Saba, and Sint Eustatius may apply for the DHI subsidy. They cannot apply for this subsidy in the Netherlands, Bonaire, Saba and Sint Eustatius
  4. Companies in Aruba, Sint Maarten and Curacao may apply for the DHI subsidy in countries outside of the Kingdom of the Netherlands. They cannot apply for this subsidy in the Netherlands, Bonaire, Saba, Sint Eustatius, Curacao, Aruba and Sint Maarten
  5. Companies in the Netherlands may apply for the DHI subsidy in Bonaire, Saba, Sint Eustatius, Aruba, Sint Maarten, Curacao and other countries. They cannot apply for this subsidy in the Netherlands
  6. The target country where you are internationalizing cannot have international sanctions in place. 

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Internationalize your company and receive a grant.

The budget for 2020 is €4 million for the Dutch Good Growth Fund (DGGF) countries and €5 million for other countries. Besides, every DHI subsidy granted is worth at least €25,000. Which means that the eligible project costs must be at least €50,000. On the other hand, you could get up to €200,000 for a demonstration project and €100,000 per a feasibility study or an investment preparation project. 

On the third of December was announced that the DHI subsidy will open in January, but be aware of the deadline on the 13th of September.  Logex and Polariks were able to complete a successfull application and are now focussing their projects across the borders! Both worked together with a subsidy consultant and got their subsidy granted this year. Ask us anything related to internationalizing your business or about this subsidy. You might be more interested to schedule a meeting and discover what the DHI Subsidy can do for your company.

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