Filenews 18 February 2026
Small and medium-sized enterprises (SMEs) are the backbone of the Cypriot economy, contributing decisively to the strengthening of employment, innovation and the maintenance of productive activity at the local level. Their ability to evolve and remain competitive, however, largely depends on their access to modern tools, technology, and investments that allow them to modernize their operations and improve their productivity.
The SME Competitiveness Enhancement Plan, which is implemented under the Cohesion Policy Program "THALIA 2021-2027", aims precisely at this transition. Through financial support for investments in SMEs, the Plan supports the upgrading of infrastructure, technological modernization and the improvement of the production process of businesses, while contributing to the creation of new jobs and the stimulation of entrepreneurship.
With a total budget of €50 million and co-financing by the European Union, the Plan is aimed at new and existing small and medium-sized enterprises, mainly in the manufacturing sector and other targeted economic activities. These investments include, among others, the construction or expansion of building facilities, the configuration of spaces, the supply of modern mechanical equipment, as well as other expenses directly related to the modernization and development of the business.
The development of production dynamics at the "Pivo" Microbrewery
The "Pivo" Microbrewery is a typical example of a company that took advantage of the Plan in order to move to the next stage of development. Before its integration, notes co-owner Thanasis Polynikis, the main challenge was limited production potential. The growing demand for its products could not be fully met with existing equipment, which limited the possibilities for further development and expansion of its market presence.
"Investing in new state-of-the-art equipment has fundamentally changed the production process. Improved control at all stages of production now allows for greater accuracy and stability in quality, while the installation of a high-quality brewing machine ensures that unfiltered and unpasteurized beers retain their freshness and quality characteristics until the moment they reach the consumer," he notes. As a result, the company increased its production dynamics, strengthened its competitiveness and expanded its network of partners and customers, creating new prospects for further development.
Possibilities for modernization and upgrading of products – The example of the "Vanilla Aroma" Patisserie
Similar is the experience of the "Vanilla Aroma" patisserie, which used its participation in the Scheme in order to modernize its operation and strengthen its market dynamics. The upgrade of the space and the supply of modern equipment, notes the owner Giannis Toumbas, significantly improved the daily operation of the business, making the production process faster and more efficient.
At the same time, says Mr. Toumbas, the conditions were created for the development of new products and the expansion of the range, enhancing the customer experience and the overall image of the business. In an industry where quality, aesthetics, and differentiation are key competitive advantages, investing in modernization has acted as a catalyst for growth.
The increase in production capacity allowed the approach of a wider audience and led to the creation of new jobs, responding to the increased needs of the company and at the same time strengthening local economic activity.
A financial tool for practical development
The two cases highlight in practice the role of the SME Competitiveness Enhancement Plan as a tool that transforms financial support into real growth. Through the support of investments in modern equipment, technology and infrastructure upgrades, the Plan, which is implemented in the framework of the Cohesion Policy Program "THALIA 2021-2027" with co-funding from the European Union, enhances the viability of businesses and creates the conditions for innovation, increasing employment and strengthening the country's productive base.
At the same time, the emphasis on technological upgrading and productivity improvement contributes to the formation of a more resilient and competitive business ecosystem, proving that targeted support for SMEs can act as a lever for wider economic progress.
https://thalia.com.cy/en/home-en/