In Slovenia, during the period from 2016 to 2022, grants for the startup of innovative companies, the so-called product P2, were implemented through annual public calls by the Slovene Enterprise Fund as part of the Operational Programme for the Implementation of the European Cohesion Policy 2014–2020. Product P2 is a grant intended for start-up companies in the seed stage of development. Although the objective of the public calls for product P2 is well defined – successful operation of most supported companies, which are expected to employ people, generate net sales revenue, and operate profitably – the progress of supported start-ups in achieving these outcomes is not monitored periodically. Furthermore, no specific evaluation of product P2 has been conducted to date that would comprehensively assess its effects at the level of supported companies in terms of its additionality. The aim of this master’s thesis is to explore in greater detail the effects of product P2 on certain characteristics and business performance of supported companies, specifically regarding their number of employees, added value per employee, net sales revenue, and profit. Through a comparison between companies that received the P2 grant and similar companies that did not, and by employing descriptive statistics and t-tests, I find that while product P2 has a positive impact on employment, it does not enhance the business performance of startups, i. e. it does not lead to the increases in their added value per employee, sales revenue, or profitability. The findings of the master’s thesis thus suggest that the use of public and European Cohesion Policy funds allocated in Slovenia for promoting innovative start-ups is not entirely optimal.
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