**EU-Backed €50 Million Scheme Aims to Foster 800 New Businesses and Create Over 1,600 Jobs in Cyprus**
An ambitious entrepreneurship initiative in Cyprus, backed by the European Union, is set to stimulate the establishment of approximately 800 new businesses and generate more than 1,600 jobs. This initiative is part of the broader strategy to utilize cohesion-policy funding for the enhancement of business development, research, transport, and urban projects on the island.
The announcement was made by Themis Christophidou, the Director-General of the European Commission’s Directorate-General for Regional and Urban Policy, during the Cyprus Forum 2026 held in Nicosia. Christophidou highlighted that the €50 million New Entrepreneurship Activity Scheme is designed to encourage the growth of sustainable and competitive businesses, with a particular focus on empowering young people and women entrepreneurs.
The funding is structured in two phases: an initial €30 million launched in 2021 and a subsequent €20 million set to be released in 2024. It is important to note that the projected figures of 800 businesses and 1,600 jobs pertain to the total funding of €50 million rather than just the initial allocation.
The scheme offers financial support that can cover a range of expenditures necessary for starting and running a business. This includes funding for equipment, premises, renovations, and promotional activities, thereby providing a comprehensive support system for aspiring entrepreneurs.
In addition to the entrepreneurship scheme, Christophidou outlined various other cohesion-policy investments currently underway in Cyprus. These include a €13 million allocation for engineering research laboratory facilities at the University of Cyprus, nearly €3 million for the restoration of three historic municipal buildings in Limassol, and €2 million for the development of Salina Municipal Park in Larnaca. Furthermore, a significant investment of €44 million is directed towards enhancing public passenger transport infrastructure and facilitating the transition to electric mobility.
Another notable project is the Evagoras integrated information system, which has received nearly €2 million in funding. This initiative aims to expand the digital services offered by municipalities, reflecting a commitment to improving digital connectivity across the region.
Christophidou also addressed the European Commission’s evolving “Right to Stay” strategy, which aims to tackle the economic and demographic challenges that drive individuals, particularly young and skilled workers, away from rural and declining areas. This initiative emphasizes improving access to jobs, housing, education, public services, transport, and digital connectivity to enhance the living conditions in these regions.
The issue of regional disparities has been a significant topic during Cyprus’ EU Council presidency. Finance Minister Makis Keravnos previously noted that over 60 million EU citizens reside in areas where GDP per capita in 2023 remains below that of 2000. He argued that cohesion policy will play a crucial role in addressing these widening regional disparities.
The European Commission's strategy is expected to influence discussions regarding the EU’s upcoming long-term budget for 2028–2034, with an increasing emphasis on linking cohesion funding to competitiveness, employment, connectivity, and the capacity of regions to retain both people and investment.
As Cyprus moves forward with this substantial investment in entrepreneurship and regional development, the potential for economic growth and job creation appears promising, aligning with broader EU objectives of fostering sustainable development and reducing regional inequalities.