Hungaryʼs Faktum Furniture announced at a joint press conference with the European Commission Representation in Hungary that EU subsidies have increased its export sales by 35%, according to a press release sent to the Budapest Business Journal.
Faktum Furnitureʼs founder and CEO Árpád Vas started out by crafting furniture for his sonʼs nursery. These humble beginnings were followed by product development and marketing activities, as well as asset purchases and working environment modernization assisted by EU financial contributions. Some 25 years after its foundation, Faktum has 70 employees and is seen as a key player in the childrenʼs furniture sector, having expanded into several new markets.
Since 2006, the European Union says it has invested more than HUF 160 million in capacity-building investments, including financing new equipment, such as CNC drills, board splitters and special-purpose drilling machines, to modernize the companyʼs assets and infrastructure. Thanks to the developments, Faktum, with its continuously expanding supply, has appeared in foreign markets, including 12 European countries.
“Accession to the EUʼs single internal market has increased prosperity for all Member States,” said Ákos Moskovits, spokesman for the European Commission Representation in Hungary. “This positive effect is strongest for countries with relatively small and less developed economies. Hungary is one of the biggest winners.”
The positive impact is further increased by EU financial assistance, added Moskovits.
“It is estimated that, overall, including the impact of EU subsidies, the GDP of Hungary is at least 20% higher than it would be without EU membership,” he asserted. “One of the priorities of EU support is the development of the small and medium-sized enterprise sector. This is due to the fact that SMEs are the backbone of the European economy: 99% of companies are SMEs and these firms account for two-thirds of private sector employment.”
“For a business, continuous innovation is essential to connect with the explosive advances of technology in order to be ready to meet the ever-changing demands of consumers,” said Vas. “With the European Unionʼs support, we have been able to modernize our machinery, introduce new products and launch them on international markets. Thanks to EU subsidies, our export sales increased by 35%.”