The state is allocating a total of 15 million euros to the development of the business environment in rural areas. Minister for Regional Affairs and Agriculture Hendrik Johannes Terras signed a regulation establishing two new support measures: support for local business infrastructure and support for business hubs.

The aim of the support measures is to strengthen business outside major cities, create new jobs and promote balanced economic development throughout the country. The total support is financed through the European Agricultural Fund for Rural Development and falls under the European Union's Common Agricultural Policy Strategic Plan 2023–2027.

Minister Terras said when signing the regulation: “Investments will be directed towards improving local infrastructure that is important for businesses, as well as towards developing a business-friendly ecosystem, including infrastructure that promotes cooperation between businesses, or business hubs. Working together creates good conditions for the development, innovation and growth of competitiveness of businesses. The addition of competitive and innovative businesses, in turn, will bring necessary jobs to rural areas, thus ensuring more even economic development and population distribution across Estonia.”

The budget for local business infrastructure support is 10 million euros. This measure provides support in the amount of 40,000 to 800,000 euros per applicant. Support is provided, for example, for the construction, reconstruction or connection to existing infrastructure of communications, internet, electricity, water and sewage infrastructure. Private companies can apply for support.

The budget for business hub support is 5 million euros. The grant can be applied for in the range of 80,000 to 800,000 euros per project. The establishment of cooperation centers, business incubators and innovation centers outside major cities will be financed. In addition to companies, non-profit organizations, foundations and state institutions subordinate to government agencies can also apply for this support.

The grants can only be used in rural and small-town areas, except for Tallinn and the neighboring municipalities of Harku, Jõelähtme, Kiili, Rae, Saku, Saue and Viimsi. There is up to half a year to prepare projects, and applications will be submitted in January 2026. More detailed information about the conditions of the application round will be published on the ARIB website as soon as possible.

These measures create a new opportunity for the development of entrepreneurship in places where it has been more modest so far. Strengthening through infrastructure and cooperation networks helps to improve the economic attractiveness of regions and increase people's opportunities to work and operate in their hometowns.