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Grants for rural retail given by PGT
Published on 23 June 2020
Spain
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
In the majority of the villages of Teruel, we face a difficult demographic and economic situation. Since it exists a seasonal, sparce and ageing population that in most of the cases can't buy anything due to the lack of physical and ambulant shops. Consequently, the idea of giving back services to depopulated areas has emerged and the Provincial Government of Teruel has decided to support this initiative by offering them grants.
The Chamber of Commerce has the management of these multirural services and its funding is shared between Provincial and Regional governments resulting . Nevertheless, the investment costs are usually between 30k and 250k and the functioning costs don't receive any grant. So, the business must also be economically self-sustained.
With respect to the budget of the PGT grants, it was of 100.000€ in 2016 and 2017 and of 50.000€ in 2018 and 2019. Regarding the budget for 2020, it is estimated an amount of 110.00€ that will include 72.000€ dedicated to new MSRs openings (max. 12.000€ per applicant) and 38.000€ dedicated to existing MSRs (that comprises the equipment adquisition and maintenance costs).
The Chamber of Commerce has the management of these multirural services and its funding is shared between Provincial and Regional governments resulting . Nevertheless, the investment costs are usually between 30k and 250k and the functioning costs don't receive any grant. So, the business must also be economically self-sustained.
With respect to the budget of the PGT grants, it was of 100.000€ in 2016 and 2017 and of 50.000€ in 2018 and 2019. Regarding the budget for 2020, it is estimated an amount of 110.00€ that will include 72.000€ dedicated to new MSRs openings (max. 12.000€ per applicant) and 38.000€ dedicated to existing MSRs (that comprises the equipment adquisition and maintenance costs).
Resources needed
As previously said the funding comes not only from the Provincial Government of Teruel, but also from the Regional Government of Aragón. In 2019, the funding of both governments resulted in total in 175.00€.
Evidence of success
The results of this initiative are very good, as a significant development has been experienced since its start even if the perspectives depends on local dynamics.
Besides, it has been a positive impact on population what is reflected in a revitalisation of the village. In some cases the inhabitants even increase as ‘second home’ owners and tourists feel more attracted to visit or spend a few days there.
It's also a great advantage for people without cars.
Besides, it has been a positive impact on population what is reflected in a revitalisation of the village. In some cases the inhabitants even increase as ‘second home’ owners and tourists feel more attracted to visit or spend a few days there.
It's also a great advantage for people without cars.
Potential for learning or transfer
Conditions for the success of this idea:
-Manager is from the village or can access a cheap accommodation
-Inhabitants, managers, municipalies and goverment must have a commitment with the initiative
-Tourism potential of the area (for increasing the number of clients)
-Manager is from the village or can access a cheap accommodation
-Inhabitants, managers, municipalies and goverment must have a commitment with the initiative
-Tourism potential of the area (for increasing the number of clients)
Further information
Website
Good practice owner
Organisation
Provincial Government of Teruel
Spain
Aragón
Contact
Commerce and Territorial Development Technician