Economy 24 April 2025, 1:18pm

Hungary's Demján Sándor Capital Programme gains momentum

Portfolio

Since its launch in March, more than 1,800 small and medium-sized enterprises have shown interest in the Demján Sándor Capital Programme, with 1,100 companies already registered. The Hungarian Chamber of Commerce and Industry (MKIK) announced on Thursday that 287 companies have met the professional and financial criteria, with 200 projects currently under evaluation and decisions on capital allocations worth HUF 1 billion already made.

Under the Demján Sándor Programme, the government has allocated HUF 1,410 billion to enable businesses to develop technology, purchase equipment and strengthen their online presence. The overall aim of the programme is to support the growth and development of Hungarian micro, small and medium-sized enterprises through various instruments, including non-repayable grants, capital injections and subsidised loans.

The Demján Sándor Capital Programme (DST), one element of the initiative, provides preferential capital financing to small and medium-sized enterprises seeking to grow and operate more efficiently.

The Ministry of Economic Development appointed the Hungarian Chamber of Commerce and Industry (HCCI or MKIK) as a strategic partner for implementation. MKIK's role is to clarify the objectives and conditions of the capital programme, while actively supporting companies in their applications and preparations. Regional chambers also play a key role in assessing applications and supporting companies after successful assessment.

MKIK has appointed MKIK Fund Management Ltd for the operational execution of the programme, which is responsible for portfolio management, investment decisions and representation of ownership.

Richárd Szabados, State Secretary for SME Development and Technology at the Ministry of Economic Development, emphasised that the capital programme and investment support can not only help SMEs to capitalise and expand, but can also be particularly beneficial for companies planning non-organic growth or market entry.

Ádám Balog, Vice President of MKIK, has directly informed local businesses about the programme in 15 county towns. He held business forums organised by local chambers of commerce in various cities, including Miskolc, Szeged, Kaposvár, Eger, Kecskemét, Nyíregyháza, Debrecen, Győr, Veszprém, Székesfehérvár, Zalaegerszeg, Szombathely, Törökbálint, Pécs, Salgótarján and Budapest. Hundreds of entrepreneurs attended these events, demonstrating confidence in the programme and a real economic demand for the capital support available.

As well as providing funding, the DST aims to strengthen the domestic entrepreneurial culture, increase the ability of Hungarian companies to attract capital and promote technological innovation.