Based on the average figures of the submitted projects, the average requested grant was HUF 77 million, while the average total project cost was around HUF 160 million. Taken together, these figures suggest that the grant typically covers close to half of the investment, meaning the decisions could trigger at least HUF 40 billion in total developments.
What do the figures reveal about the structure of investments?
1) The level of oversubscription indicates strong investment pressure
In the second round, 618 applications were submitted with total requested support of HUF 46.5 billion, which is more than twice the available budget. This signals both strong investment demand and the fact that a significant share of businesses had ready, well-prepared projects.
2) The composition of winners shows the programme is effectively driving investment among smaller players
Of the supported businesses, 176 are micro and small enterprises, while 81 are medium-sized companies. This distribution suggests that a large share of projects are of a scale capable of delivering step-change improvements in capacity, quality, or efficiency.
3) Sector focus: metalworking and metal structure manufacturing stands out
Within manufacturing, the largest group of supported companies operates in metalworking and metal structure manufacturing, with 44 winning projects and HUF 2.9 billion in grants. This is a segment where productivity gains can typically be achieved fastest through asset-side upgrades (machinery, automation) combined with process-level improvements (measurement, quality assurance, lead-time reduction).
Regional picture: broad coverage, varying intensity
The regional breakdown of the funding decisions shows a balanced distribution overall, with higher volumes concentrated in the following areas:
- Pest County: 50 businesses, HUF 3.8 billion
- Southern Great Plain: 38 businesses, HUF 4.4 billion
- Northern Great Plain: 36 businesses, HUF 3.0 billion
- Central Transdanubia: 44 businesses, HUF 2.9 billion
- Southern Transdanubia: 32 businesses, HUF 2.9 billion
- Western Transdanubia: 35 businesses, HUF 2.0 billion
- Northern Hungary: 22 businesses, HUF 1.7 billion
Overall, the data suggests that capital investment is not concentrated in a single region; however, differences in grant amounts and number of supported firms indicate varying investment intensity across regions.
Market implications: what could happen over the next 6–12 months?
1) Productivity gaps may widen
If several hundred businesses upgrade equipment and technology at the same time, the effects are likely to appear in unit costs, lead times, and quality consistency. Companies that do not modernise may find themselves at a disadvantage in the price–deadline–quality trade-off.
2) Stronger competition in supplier markets
The impact of these developments often becomes visible first in supply chains: shorter delivery commitments, better planning reliability, and stronger production stability. This may be particularly noticeable in manufacturing-related and construction-linked markets.
3) Easing capacity and wage pressure through mechanisation
In many sectors, the investment rationale is no longer just growth, but risk management: reducing labour dependency, cutting scrap and rework, and easing management workload can deliver measurable outcomes.
Conclusion
Based on the latest decisions, at least HUF 40 billion in SME investment could be launched in the coming period, typically through mid-scale, asset- and technology-driven developments. The expected effects include widening productivity differences and intensifying supplier competition.
The key takeaway for businesses is clear: the investment cycle is accelerating, and competitiveness will increasingly depend on measurable technological and process capabilities.
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