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27.10.2026

Can the grant pay for prototypes in a youth business-idea competition (buying materials to make something practical)?

Yes, provided that prototyping is a learning activity of the Action. Materials for prototypes may be covered where the prototype is built within activities such as a design-thinking or innovation lab, a hackathon or a business innovation challenge, and serves to test and present the idea. Such activities are listed among the indicative activities under Priority 1 (innovation labs) and Priority 2 (light incubation, youth start-up pitching events and business innovation challenges). The materials are consumables specifically dedicated to the Action. They must be entered under Annex B, line 3.2, and must be necessary, proportionate and justified.

(Ex. Business innovation challenge in crafts: young people develop a product idea, for example a bag made from recycled materials, and sew one or two prototypes to present at the pitching event. Covered: fabric, thread and recycled materials.

Digital product prototype: a team creates a mock-up of a mobile app for local tourism. Covered: licences for prototyping software for the duration of the activity (Annex B, line 3.3).

The in-kind support will not cover product development for a young person’s own business. This includes producing a first batch, a saleable product, packaging or a mould for production. Such costs are considered start-up capital or costs of an individual business, which are not eligible. The support may also not generate a profit for participants.

The support cannot be given to participants or teams as individual allowances or  material packages to develop prototypes of their own, outside the activities of the Action.The purchase of equipment is not eligible. Equipment needed for prototyping may be rented (Annex B, line 3.1),

Guidelines for Applicants: sections 2.2 (Priorities 1 and 2,, indicative activities) and 2.3 (non-eligible costs; no-profit rule); Annex B, notes to lines 3.1, 3.2, and 3.3.