Digitalisation costs money – but for small and medium-sized businesses it need not cost nearly as much as many think. Federal and state programmes fund digitalisation projects with grants, low-interest loans and consulting subsidies. The problem: most SMEs don't know which programmes exist or how to apply for them.
This article gives a practical overview of the most important funding routes for digitalisation projects – from process consulting and new software to your own website.
Why it pays to look at funding
A typical digitalisation project – introducing industry software or optimising business processes – quickly costs a mid-sized company a five-figure sum. Depending on the programme, 40 to 80 percent of that can be covered by grants. That fundamentally changes the calculation.
Important: funding applications almost always have to be submitted before the project starts. Those who commission first and think about funding later usually come away empty-handed.
The most important funding programmes at a glance
1. Consulting subsidies
Public bodies subsidise consulting services for SMEs. Digitalisation consulting – analysing processes, creating a digitalisation roadmap or selecting suitable software – also qualifies. A share of the consulting costs is funded, depending on region and company stage.
2. State-level digital programmes
Almost every federal state has its own digitalisation funding programme. The names vary – "digital bonus", "go-digital", "digitalisation premium" and similar – but the principle is usually the same: grants for hardware, software, IT security and sometimes web presence.
3. go-digital
The "go-digital" programme funds concrete digitalisation projects in three modules: digitalised business processes, digital market development and IT security. Implementation is handled by authorised consulting firms, and part of the fee is subsidised.
4. Low-interest development loans
Those who can't use a classic grant programme or are planning larger investments will find low-interest development loans. These aren't free grants, but with low interest and long terms they are often far more attractive than a normal bank loan.
The exact conditions, funding rates and application deadlines change regularly and differ by state and company size. Always check the currently valid terms of the relevant funding body before you plan.
What is typically funded?
- Consulting services: process analysis, digitalisation strategy, tool selection
- Software: industry software, CRM systems, inventory management, custom development
- Hardware: servers, devices, network technology (often only in combination with software)
- IT security: firewalls, backup solutions, security audits
- Online presence: websites, online shops, sometimes SEO measures
- Training: employee qualification within the digitalisation project
How to proceed – step by step
Step 1: Define the project
Before you look for funding, you need a clear plan. What exactly do you want to digitalise? Which problem are you solving? The more concrete, the easier to find the right programme.
Step 2: Identify the right programme
Research your state's programmes as well as the federal ones. Pay attention to requirements such as company size, industry and location.
Step 3: Apply BEFORE the project starts
This is the most common mistake: commissioning first, then applying for funding. Almost all programmes require the application to be submitted – and sometimes approved – before the first commission.
Step 4: Document the implementation
During the project, collect all receipts, invoices and proofs. Payment is usually made only after project completion and against proof of use.
Common mistakes in funding applications
- Applied too late: commissioning before applying excludes funding
- Wrong programme: not every project fits every programme – check the requirements carefully
- Unclear project description: vague applications are rejected more often than precise ones
- Deadlines missed: some programmes have cut-off dates or limited budgets
- Proof of use neglected: no clean documentation, no payment
Combining funding and consulting sensibly
Especially with consulting subsidies, there is a double lever: an experienced digitalisation consultant not only helps you set up the project correctly – they usually also know the relevant funding programmes and can point you to the right path.
Checklist: before you start a digitalisation project
- Project goal and scope clearly defined?
- State funding programmes checked?
- Federal programmes checked?
- Requirements (size, industry, location) met?
- Application submitted BEFORE any contract was awarded?
- Application deadlines and budget availability considered?
- Documentation obligations for proof of use known?
Conclusion
Funding can turn a digitalisation project from a large investment into a manageable, partly financed measure. The effort of applying is worth it in most cases – provided you act early and in a structured way.
We support small and medium-sized businesses in setting up digitalisation projects correctly – including an initial assessment of which funding routes are an option for your project. Talk to us before you start.