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Grants for Women’s Employment Projects Now Open

Applications are open until March 16th.

You can apply for grants for product development, marketing, and wage costs (for newly established companies). The maximum grant is 4 million ISK, and you can apply for grants covering half of the costs.

You can also apply for grants for the preparation of business plans amounting to 600,000 ISK.

Conditions for grant allocation include innovation in the idea/project, majority ownership by women (51%), and that the project leads to job creation. Additionally, applications must be well completed, and email applications are not accepted.

Grants will be processed at the beginning of May, with allocations made in mid-May.

Rules and requirements

Projects eligible for grants must be majority‑owned by women (at least 51%) and managed by women.
The project must involve long‑term job creation in Iceland.
It must include an element of innovation, either a new product/service or the development of an existing product/service.
Requirements include that the business idea is well developed, goals are clear, and the methods for achieving them are well defined.
The project plan must be detailed and realistic, and the cost and revenue plan must be thorough, clear, and credible.
It is important that all information is provided in the application and that it does not rely on attachments.

There are requirements that the project must not distort competition in the market where the product or service will operate.
The maximum grant is ISK 4,000,000.
Note that grants may only cover half of the project cost, so the total project cost must therefore be double the grant amount.
Example: If a grant of ISK 500,000 is awarded, the cost overview must amount to at least ISK 1,000,000. It is permitted to count 25% of the total cost as the beneficiary’s own contribution, but actual expenses must amount to at least 75% of the total project cost.

Grants may be awarded for business plan development (ISK 600,000), planning, development costs, and marketing – see further details in the application form.

If a company is newly established and not yet in full operation, and a credible business plan is available showing that the applicant is about to start operations, it is possible to apply for a grant to implement the idea (salary support for the grant recipient).
The grant may be paid in stages against submission of progress reports, and payslips must be provided with the final report. A business plan must be included as an attachment. The rules on 50% cost matching do not apply in this case.

Grants are not awarded for investments such as construction costs, general operating support, or production.
Grants are not awarded for the purchase of equipment.

Please note that grants are taxable income, and beneficiaries will receive an income statement from the Directorate of Labour. It is necessary to report expenses against the grants.

If applying for support for business plan development, the applicant only needs to fill out the sections on the business idea, objectives, and innovation. A cost overview is not required, nor does the 50% matching rule apply. A separate application form must be used when applying for business plan development.
In 2023, grant recipients awarded funding for business plan development are offered a business workshop with assistance and guidance. Prizes are awarded for the best business plans.

Please note that public entities or NGOs are not eligible.
Grants are not awarded for temporary projects, such as book publishing, concerts, or other one‑off activities.
Grants are not awarded for projects or project components that have already received funding from other sources.

We reserve the right to obtain information regarding any other public grants awarded to a beneficiary.

Applicants who do not have Icelandic as their mother tongue may submit applications in English.

Grant recipients sign an agreement on the project, receive half the funding upon signing, and the remaining half upon submission of the final report. Grant recipients have one year to complete the project.
You may receive funding a maximum of two times for the same company/project.

The Application System

To log into the system and apply, you must use your personal kennitala.
If applying on behalf of a company, mark this in the application, and you may then enter the company’s kennitala and additional information, such as confirmation of ownership.

Please note that applications are only accepted through the online application system on this website. Applications sent via email are invalid.

It is also important to save your application regularly. If you do not, the application may be lost entirely and cannot be retrieved. It is good practice to keep all text in a separate document.

Note that to save an application, you must fill in all required (star‑marked) fields.

Scoring criteria

Below you can see the criteria used by the committee that reviews the applications.

Scoring Criteria

Points are awarded for five components: innovation, competition, potential development, description of the business idea, and planning (financing, cost plan, and project plan).
The categories innovation, description of the business idea, and planning each weigh 25%, while competition and potential development each weigh 12.5%.

Below are the scoring criteria. Points may be awarded as 5, 15, or 25 points for each category. Points are then added together and an average is calculated.

Innovation

  • 0 points – No innovation, outdated methods.
  • 5 points – Little or no innovation in the product or methods.
  • 15 points – Considerable innovation in the product or methods.
  • 25 points – The project is highly innovative and new to the market; new methods, improved product, or addressing an unmet need.

Competition

  • 0 points – Direct competition with domestic and local businesses.
  • 5 points – Rather limited competition with similar products or services.
  • 10 points – Insignificant competition, the solution is different from what exists, no local competition, industry experiencing some growth.
  • 15 points – Very limited competition, a new market, industry experiencing strong growth.

Potential Development

  • 0 points – Unlikely that the idea will develop into economic activity.
  • 5 points – Uncertain whether the business idea can succeed and create employment.
  • 10 points – Fairly likely that the business idea will succeed and lead to employment.
  • 15 points – Very likely that the business idea will succeed and lead to employment.

Description of the Business Idea

  • 0 points – Description of the idea is insufficient.
  • 5 points – The description is adequate but the objectives are unclear or vague.
  • 15 points – The business idea is well described and objectives well defined and clear.
  • 25 points – The description is very well developed and the project objectives are very well defined and clear.

Planning (Financing, Cost Plan, and Project Plan)

  • 0 points – No cost plan provided.
  • 5 points – Cost plan is inadequate, poorly prepared, and unrealistic.
  • 15 points – Cost plan is fairly well prepared, realistic, and financing is credible.
  • 25 points – Cost plan is very well prepared and realistic; project financing is highly credible.

Further information

Inquiries about grants can be sent to the project manager at asdis.gudmundsdottir@vmst.is.

You can also book an appointment on the website (book a consultation).