In the following article we have compiled the requirements that founders have to meet when applying for a start-up subsidy, why a business plan is a must and why the clerks at the employment agency also take a close look at the personality of the founders.
Worth knowing about the start-up grant
Before entrepreneurs can get off to a flying start with their business idea, they need financial resources in order to realize the business idea at all. In particular, founders who are unemployed often lack the financial means for such a project. But this is no reason to put the business idea on hold and bury the dream of starting your own business. Because the start-up subsidy from the Employment Agency can help unemployed people who want to set up a business to become self-employed with their own business idea.
With the start-up subsidy, start-ups receive financial support in two phases. In the first phase, the entire amount of ALG 1 is paid out for six months. In addition, founders receive 300 euros per month for social security.
After six months, the case will be reassessed by the Employment Agency. The results of the start-up are evaluated and it is determined to what extent the goals have been achieved. If the clerk comes to the conclusion that the founder still needs support, the second phase begins. This runs for nine months, during which only the 300 euros for social security are paid out.
But beware: part-time activities are tempting if the start-up is not yet generating high profits. However, founders should note that they are restricted during the funding phase and may only carry out part-time work if this does not exceed 15 hours per week. Additional earnings above this must be declared.
Who can apply for the start-up grant
Not everyone who receives ALG 1 can apply for the start-up grant. Certain criteria apply to the application for a start-up grant.
- Applicants must have at least 150 days remaining entitlement to ALG 1
- Founders must apply for ALG 1 at least one day before they become self-employed
- Founders must not be older than 65 years
- self-employment is carried out in the main job
- expected profit is sufficient to ensure the existence of the founder
Founders should also note that they are not entitled to start-up grants, but that the funding is awarded at the discretion of the responsible intermediary at the Employment Agency. This is assigned to the unemployed as soon as the application for unemployment benefit has been received and has a clear goal: placement in an employment relationship.
This means that business founders have to convince their responsible intermediary to grant the start-up subsidy. The best way to do this is a well-planned business plan including a financial plan. This contains the following points:
Founders must also demonstrate personal and professional suitability
In addition to a promising business plan, the clerks at the employment agency also pay attention to the professional and personal suitability of the applicant. After all, this person should have certain prerequisites for the tasks as a manager. Personal suitability can be proven, for example, by taking the initiative, punctuality, personal commitment and reliability. Founders must also be convincing as personalities if they want to apply for the start-up subsidy. A certain self-confidence as well as motivation and determination are a good start here.
The clerks also pay particular attention to the qualifications of the founders. It may be necessary to attend a preparatory course or start-up seminar to provide evidence of personal and professional qualifications such as verifiable professional experience or commercial qualifications.
Which documents are required for the start-up grant application
In addition to the business plan, other documents must be submitted for the start-up grant application. These include:
Business start-up advice helps with the start-up subsidy application
Since in particular the Business plan creation Often causes difficulties for business founders without previous experience, this task should be tackled within the framework of business start-up advice. A consultant knows what content in a business plan must stand and can help in the creation or further development of the business plan. The amount of support for advice before starting a business depends on the federal state and is up to 80% of the costs (service tip: consultant search).