Do SMEs Get Support for Business Startup Training? Funding Sources

What size is considered a small and medium enterprise?

Under Article 4 of the Law on Supporting Small and Medium Enterprises 2017, criteria for determining an enterprise as a small and medium enterprise include:

“Article 4. Criteria for determining small and medium enterprises

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1. Small and medium enterprises include micro, small and medium enterprises with average annual employees participating in social insurance not exceeding 200 persons and meeting one of the following two criteria:

a) Total capital not exceeding 100 billion dong;

b) Total revenue of the immediately preceding year not exceeding 300 billion dong.

2. Micro, small and medium enterprises are determined by sectors: agriculture, forestry and fisheries; industry and construction; trade and services.

3. The Government shall detail this Article.”

This is specifically guided by Article 5 of Decree 80/2021/ND-CP as follows:

(1) Micro enterprises in agriculture, forestry and fisheries; industry and construction sectors employ on average no more than 10 persons participating in annual social insurance and have annual total revenue not exceeding 3 billion dong or total capital not exceeding 3 billion dong.

Micro enterprises in trade and services sectors employ on average no more than 10 persons participating in annual social insurance and have annual total revenue not exceeding 10 billion dong or total capital not exceeding 3 billion dong.

(2) Small enterprises in agriculture, forestry and fisheries; industry and construction sectors employ on average no more than 100 persons participating in annual social insurance and have annual total revenue not exceeding 50 billion dong or total capital not exceeding 20 billion dong, but are not micro enterprises as prescribed in Clause 1 of this Article.

Small enterprises in trade and services sectors employ on average no more than 50 persons participating in annual social insurance and have annual total revenue not exceeding 100 billion dong or total capital not exceeding 50 billion dong, but are not micro enterprises as prescribed in Clause 1 of this Article.

(3) Medium enterprises in agriculture, forestry and fisheries; industry and construction sectors employ on average no more than 200 persons participating in annual social insurance and have annual total revenue not exceeding 200 billion dong or total capital not exceeding 100 billion dong, but are not micro or small enterprises as prescribed in Clauses 1 and 2 of this Article.

Medium enterprises in trade and services sectors employ on average no more than 100 persons participating in annual social insurance and have annual total revenue not exceeding 300 billion dong or total capital not exceeding 100 billion dong, but are not micro or small enterprises as prescribed in Clauses 1 and 2 of this Article.

Since you have not specified your enterprise’s business sector or annual total revenue, it cannot yet be determined whether your enterprise falls into the small and medium enterprise group. You may rely on the above criteria for specific determination, which will facilitate application of legal provisions.

Do small and medium enterprises receive support for business startup training?

Article 2 of Decree 80/2021/ND-CP clearly provides: if your enterprise meets the criteria prescribed in Article 5 of Decree 80/2021/ND-CP, your enterprise is eligible for human resource development support.

Point a, Clause 1, Article 1 of Circular 49/2019/TT-BTC provides:

“1. This Circular guides the preparation of estimates, management, use and settlement of state budget funds supporting human resource development for small and medium enterprises (SMEs) under Decree No. 80/2021/ND-CP dated 26/8/2021 of the Government detailing a number of articles of the Law on Supporting Small and Medium Enterprises (replacing Decree No. 39/2018/ND-CP). Including:

a) Support for business startup training and business administration (basic and advanced);”

This shows that human resource development support includes support for business startup training and business administration (both basic and advanced). Therefore, if your enterprise is in the small and medium enterprise group under the law, your enterprise is supported for business startup training.

Where does the funding for business startup training support for small and medium enterprises come from?

Article 3 of Circular 49/2019/TT-BTC on funding sources for implementing human resource support policies for small and medium enterprises provides as follows:

“Article 3. Implementation funding sources

Funding for implementing SME human resource development support policies includes partial support from the state budget (central budget, local budgets), contributions and support from enterprises, organizations, individuals and other lawful funding sources.

1. State budget sources:

a) Central budget: Allocated in annual recurrent expenditure estimates of Ministries and ministerial-level agencies; or supporting nationwide or inter-provincial associations to perform SME human resource development support tasks.

b) Local budgets: Allocated in annual recurrent expenditure estimates of localities to perform SME human resource development support tasks in the locality.

2. SMEs and training participants contribute part of the funds.

3. Agencies and units mobilize other financial sources (outside the state budget) from domestic and foreign enterprises, organizations and individuals and international organizations as prescribed by law to perform SME human resource development support tasks.”

Specifically, Clauses 1 and 2, Article 7 of Circular 49/2019/TT-BTC provide funding for organizing business startup and business administration training courses and state budget support as follows:

(1) The total cost of organizing business startup and business administration training courses supported from the state budget is the total actual expenses incurred under the expenditure contents prescribed in Article 6 of this Circular.

(2) The total cost of organizing training courses prescribed in Clause 1 of this Article is paid from the following sources:

a) Support from the state budget (central budget, local budgets) at the levels prescribed in Decree 80/2021/ND-CP and this Circular as follows:

– The state budget support level in the total cost of organizing a business startup training course is up to 100%, basic business administration up to 70% and advanced business administration 50%.

– The spending norm for each expenditure content in a training course to determine the state budget support amount follows Circular No. 36/2018/TT-BTC dated 30/3/2018 of the Ministry of Finance guiding the preparation of estimates, management, use and settlement of funds for training cadres, civil servants and public employees, and the following principles:

+ For expenditure contents with specific standards and norms (payments to lecturers and reporters; compilation of programs, curricula and training materials; drinking water and refreshments; student awards; exam setting, invigilation and marking; business travel), they must follow the prescribed regime. For foreign lecturers and reporters, determining the state budget support for teaching remuneration, travel, food and accommodation applies as for domestic lecturers and reporters.

+ For expenditure contents without specific standards and norms: based on contracts, invoices and actual, reasonable and lawful expenditure documents as prescribed by law.

b) The remaining costs (equal to the total cost of organizing a training course prescribed in Clause 1 of this Article, minus the state budget support under Point a, Clause 2 of this Article) are paid from the following sources:

– Sponsorship and mobilized funds from domestic and foreign enterprises, organizations and individuals for the training course (if any).

– Tuition contributed by trainees. Training units are encouraged to maximize sponsored and mobilized funds to reduce tuition for trainees participating in the training course.

It can be seen that funding sources for implementing human resource support policies in general and business startup training support in particular are specifically and reasonably prescribed by law to facilitate enterprises in application.

What expenditures are included in organizing a business startup training course?

Article 6 of Circular 49/2019/TT-BTC on expenditure contents for organizing business startup and business administration training courses counted in the total cost supported from the state budget provides as follows:

(1) Direct training course service costs:

a) General expenses:

– Enrollment costs: phone calls, invitation letters, posting information on mass media.

– Payments to lecturers and reporters: teaching remuneration (including remuneration for preparing lesson plans), food, accommodation and travel costs.

– Costs of printing, photocopying and purchasing study materials under the training course program for trainees (excluding reference materials).

– Costs of renting halls, classrooms, projectors and study equipment.

– Drinking water and mid-session refreshments; stationery.

– Costs of opening and closing ceremonies.

– Other direct class service costs (electricity, water, sanitation, vehicle keeping, video and photo documentation and other direct costs).

b) In addition to the general expenses prescribed at Point a, Clause 1 of this Article, business administration training courses (basic and advanced) have the following expenses:

– Costs of organizing learning outcome tests and assessments (exam setting, invigilation, marking).

– Costs of organizing domestic field visits for trainees (if any): renting vehicles to transport trainees; allowances for reporters sharing experience at field visits.

– Costs of issuing certificates of training course participation.

– For advanced business administration training courses, depending on necessity, foreign lecturers and reporters may be invited to teach; in addition to teaching remuneration, food, accommodation and travel, there are additional interpretation and document translation costs.

(2) Training course management costs of the training unit (not exceeding 10% of the cost of organizing a training course), including:

– Business travel for class management officers of the training unit where classes are organized far from the training unit.

– Overtime of class management officers (if any); organizing meetings to implement the training course.

– Other expenses for class management and administration: communications, site surveys to organize classes.

Thus, if your enterprise meets the criteria to be considered a small and medium enterprise, based on the above provisions, your enterprise may receive support for business startup training with the specific funding sources and expenditure contents mentioned above.

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