In the first episode of the new SMEs Series, I sit down with Alicja Grzegorzek Carrascosa (Co-founder of Polite Europe) to tackle one of the most complex issues facing SMEs in EU projects: understanding eligibility rules. The episode digs into the distinctions between SME owners and employees, how their time can be charged in projects, and the two main reimbursement routes — actual costs and unit costs — while highlighting the critical impact these choices can have in audits.

Alicja gives a detailed understanding of real-life scenarios across EU countries (including Spain, France, and Belgium), how holding structures and grey zones complicate compliance, and why it's vital to document decisions and consult with project officers, National Contact Points, and auditors. The episode offers not just clarity but also strategies for de-risking participation in EU projects — a must-listen for SME owners, grant consultants, and public facilitators supporting them.

Time codes:

00:02:14 Introduction

00:06:20 Fly in

00:08:19 SME eligibility issues

00:20:07 Practical advice for SMEs

00:31:44 The toughest challenge