If you are planning to start a business in Germany, you should know that you need to think carefully about the self-employment route. This path is challenging and lengthy. Also, you need too much perseverance to go through it. The attractive part is that if you succeed, you will be your own boss, and you will be able to earn money from an idea you developed and support 100%. However, to implement your idea, you must incur many expenses. In the article from Wise Business Group, we will refer to how to receive a business start-up grant in Germany.
Read more: Start your business life in Germany
Starting a business in Germany is very expensive, especially in the early stages. As a start-up entrepreneur in Germany, you should at least consider the following expenses for starting your business:
Many start-ups alone cannot provide enough capital to cover these huge costs. Therefore, they should borrow from the bank or use other financing sources.
People who plan to start a business in Germany should take advantage of every opportunity to get more initial capital. The employment office supports self-employment in Germany by providing start-up grants to entrepreneurs. It often allocates this grant to young entrepreneurs. Not everyone can receive a profitable financial injection from the employment office for their business. Only the competent authorities of this office determine whether your business is supported as a start-up in Germany or not.
Read more on Wise Business Group: Entrepreneurship in Germany
The employment office examines each application for self-employment allowance in Germany. Then, it decides whether it financially supports the young entrepreneur or not. No legal entitlement is to receive a start-up grant. If the employment office concludes that helping you as a start-up entrepreneur in Germany is not necessary, it must justify its decision. Therefore, it is worth preparing for the interview as hard as possible to increase your chances of getting a business start-up grant in Germany. To this end, the first and most important step is preparing a coherent business plan. Then, you should be able to provide a certificate confirming the viability of your business idea. A specialized body such as the Chamber of Commerce and Industry (IHK) in Germany must approve this certificate.
You can also get help from start-up coaches in Germany. In the past, they have accompanied many entrepreneurs on the path of self-employment. Therefore, they can support you and warn you of potential obstacles in the early stages. A start-up grant is also intended for unemployed people who dare to start their business in Germany after unemployment.
Our team can help you prepare a business plan and get the necessary approvals to start a business in Germany. You can contact us for more information in this regard.
The support of the Employment Office for start-up businesses in Germany is divided into two stages:
In the first six months, the allowance this office grants monthly to entrepreneurs depends on the last unemployment benefits they receive. Also, they will grant an amount of 300 euros to entrepreneurs for the initial social security. If they later prove that they run their business centrally and are fully committed, they can receive 300 euros for social security for another nine months. If the self-employed has already received a support allowance from the Employment Office for another business start-up project, according to SGB III, they can benefit from the allowance again after at least 24 months.
Even if you do not receive a start-up grant from the German Employment Office, do not despair. Many other support options exist for start-ups in Germany that could be attractive to you. More than 2,000 financing programs are defined across Germany, including subsidized loans, grants, and various guarantees. Another place to turn to for financing your business in Germany is KfW, which primarily offers subsidized loans such as the KfW Start-up Loan. There are also development banks or other guarantee banks in different German states that provide the possibility of paying subsidies to start-up projects. Thus, it is necessary to have a detailed discussion with your start-up coach to identify possible funding sources for starting your business in Germany.
Starting a business is like starting a new life. After that, you should always seek to attract customers and try to make your products available to the public as much as possible. It requires a high investment in some cases. Therefore, we advise you to submit your application for financial assistance as soon as possible and take advantage of the available support. You can contact us for advice on starting a business and financing sources in Germany.
If you dream of starting your own business in Germany, you must be very persistent and incur huge expenses. Most start-up entrepreneurs in Germany cannot provide enough capital to start a business alone. There are many options for financing businesses in Germany, especially in the start-up phase. The most important is the start-up grant awarded to young entrepreneurs by the German Employment Office. To apply for it, you must have a coherent business plan and obtain confirmation from specialized and reliable institutions in Germany indicating that your business idea is viable. You can also use a KfW start-up loan to finance your business or receive a grant from other development or guarantee banks in Germany.
You can contact us for advice on starting and registering a business in Germany. Our consultants with years of experience will help you to set up your business in Germany in the most optimal way possible. In addition, we can help you prepare a comprehensive business plan that considers all aspects of your business and is convincing to banks, investors, and even the German immigration office.
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