Expert Guidance to Unlock Your Start-Up Grant
The start-up grant is a state subsidy in Germany that supports unemployed people in becoming self-employed. It offers financial help in the first few months after starting a business and includes both a living allowance and a lump sum for social security. The prerequisite is a viable business idea and a current entitlement to unemployment benefit.
Unemployed? Self-employment via the start-up grant
The start-up grant is one of the government’s most important tools for supporting unemployed people to start their own business. And some people often ask themselves the question: Unemployed – what to do? You can get funding, support and advice to get your business idea off the ground.
What is the start-up grant from the Federal Employment Agency?
The start-up grant is a support programme and is one of the subsidies for business founders, which is aimed at prospective entrepreneurs aged 18 and over who are currently receiving unemployment benefit (unemployment benefit 1). But what are the rules, how much are the payments and how can you benefit from them? We explain all this in our detailed articles on the topic of start-up grants.
The Federal Employment Agency offers practical and financial support for people who want to start their own business. This support consists of a combination of business counselling and a monthly subsidy. The motto here: ‘Self-employed from unemployment’.
Before you apply for the start-up grant, it makes sense to request an AVGS voucher (activation and placement voucher) from your case worker. With this voucher, you can take part in a professional start-up coaching session at a business consultancy such as ours. During this coaching session, we will help you draw up your business plan and support you in creating a strategy to turn your idea into a realistic, income-generating business.
Are you entitled to a start-up grant?
Who can apply for a start-up grant?
- Everyone who receives ALG 1
- Everyone who becomes self-employed full-time after being unemployed
- And has a remaining entitlement to unemployment benefit of 150 days
It serves as start-up financing to successfully establish yourself on the market with a good business idea. The amount and duration of the start-up grant depend on various factors.
Your start-up grant: Up to 15 months!
This is how long the start-up grant is granted in the best case scenario. These 15 months consist of two specific phases:
1. A basic grant, plus a contribution for health insurance
For six months you will receive a basic grant in the amount of your previous ALG 1 entitlement plus a monthly flat rate of 300 euros to cover social insurance expenses (these can actually be higher or lower). The basic grant is included in the calculation of your health insurance contributions if you are legally insured.
2. The development grant: 9 months of health insurance contributions
In addition to the basic grant, you can apply for a one-time extension of nine months. During this time, you will not receive the full grant, but you will still receive the flat rate for the health insurance contribution of 300 euros. The development grant is not included in the calculation of your health insurance contributions.
This is how much money is involved in the start-up grant from ALG 1
Married founders with children who previously earned an income above the contribution assessment limit can receive up to 20,425 euros in start-up funding. Single people without children can receive up to 16,709 euros.
How to apply for a start-up grant
The start-up grant from the employment agency is the perfect support for job seekers who want to become self-employed – but alongside all the advantages, there are also disadvantages.
Due to the opaque rules, some of our clients regularly ask themselves how to apply for a start-up grant and what they need to take into account. Here is a brief overview, provided you meet all the requirements for the grant:
Submit a written application to the employment agency.
Write a professional business plan.
Fill out the application together with one of our start-up advisors.
If your business plan meets the official standards and you can demonstrate the necessary skills and your business idea has a future, we will give you an expert opinion.
The most important thing: Before the 150 days of remaining entitlement to unemployment benefit 1 expire, you must submit the application for the start-up grant, the business registration, and the opinion of an expert body to your clerk.
If everything goes well, you will receive the approval notice by mail after a few weeks of processing time.
Apply for AVGS and receive free start-up coaching
Are you unemployed or affected by unemployment? Then you can apply for an activation and placement voucher (AVGS) through the employment agency or job center. This gives you the opportunity to take part in individual AVGS coaching from an accredited consultant for professional reorientation or reorientation at no cost. This coaching can be used, for example, to develop your business idea or to create a business plan before you apply for a start-up grant. Depending on your needs and situation, you will receive the AVGS over 15, 20 or even more teaching units (UEs).
Potential Disadvantages of the Start-up Grant
Starting a Business from Hartz IV
Hartz IV recipients who want to start a business cannot apply for a start-up grant. In this case, the job center nevertheless offers them support in the form of an entry-level grant to support them on the way to self-employment. The entry-level grant is intended to encourage the start-up of a full-time, self-employed activity.
Before starting a business, Hartz IV recipients must apply for the entry-level grant from the relevant employment agency. This agency monitors whether the new employment is likely to ensure that you will no longer be dependent on ALG 2 in the future and whether the grant is necessary for integration into the labor market. The agency then decides how long the grant will be paid and how high it will be.
Unternehmenswerk as a reliable partner in the start-up grant application
As start-up consultants, we support you throughout the entire process. From communication to successful, subsidized start-up coaching to the successful submission of the application for start-up funding - both in Cologne and North Rhine-Westphalia as well as throughout Germany. Would you like to contact us without obligation?
What our customers say
99% positive Google reviews
"I had Mr Deuble at my side as a consultant and was extremely satisfied. He was always at my side with help and advice, was able to cater to my individual needs and was always flexible. I can only recommend him! I received my grant in the end without any concerns and therefore recommend him to others. Thank you very much 👍"
Mathios I.
Owner, manufacturer of
food supplements
"Absolutely professional, helpful and friendly. The content that is taught is also conveyed perfectly. Everything went to my complete satisfaction. Highly recommended"
Stefan K.
Photographer, Owner
"Mr Deuble has helped me a lot. He is very competent, friendly, always has advice and takes good care of his customers. Exemplary - I can only recommend him."
André G.
Owner, cleaning service provider
"I had the pleasure of taking part in a personal coaching session with the owner, Mr Pavel Deuble, which prepared me for my future self-employment. I would like to thank him from the bottom of my heart for this exceptional coaching. His approach and commitment far exceeded my expectations. Mr Deuble always responded to my personal needs and priorities and thanks to his flexibility we were able to get the most out of the coaching together and he continues to support me even after the coaching, which is not a matter of course and should be appreciated. I am extremely grateful to Mr Deuble and can recommend his coaching to anyone who is looking for professional support on the path to self-employment."
Melih Orhan
Accounting office
Unique service, super friendly, always available, Mr Pavel was always at our side with help and advice when we set up our business. Everything was done very professionally and seriously! I can only recommend 100%!
Alireza Dehhagi
Gastro
We can only recommend Unternehmens-Werk to others! In addition to the competent advice in every area of setting up a company, Mr Deuble always had an open ear and was always on hand with help and advice. We would like to thank him once again for his great support!
Sebastian Brück
Own Water
Very satisfied. Very good advice and assistance in drawing up the business plan.
Benni Bublak
Independent Trailrunning Media GmbH
The team at Unternehmenswerk gave me super competent advice on all my questions and supported me in drawing up my business plan and applying for a start-up grant. This was approved today! 🙂 Thank you very much for your support 🙏 You guys are great!
Teresa Bach
SEO-Agency
I got to know Unternehmens-Werk as part of a programme run by the employment agency. I immediately felt that I was in very good hands. I needed support with questions about self-employment, and my existing secondary employment was analysed in detail. I am very happy to have been put in touch with Unternehmens-Werk. Thanks to the individual coaching, I can now look to the future with confidence and face the new challenges. My special thanks go to Mr Deuble
Thomas Sperrhake
Hoof service Sperrhake
Mr Deuble was my coach when I started my own business and was always there to help and advise me with questions about taxes, financing and everything else involved. Thanks to his help and the help of his team, I now feel ready and confident to take the plunge into self-employment.
I am absolutely satisfied with the expertise, friendliness, flexibility, professionalism and patience that I received from Mr Deuble in particular. Thanks to his empathic skills, he was even able to convince me that taxes, for example, can be interesting. 🙂 All in all, absolutely recommendable.
Christina Viehmann
My cloverleaf organic shop
Pavel was my coach in the start-up seminar. As a person and coach, 5 ⭐ ⭐ ⭐ ⭐ ⭐ stars. His knowledge of founding, financing and everything to do with the authorities is super deep – he is rock solid in the subject matter.
All agreements are processed very quickly – it’s just a lot of fun working with Pavel.
He is also a very good dialogue partner and listener. I am very happy that he found a free date for our training.
Pavel, thank you 🙏 to you and your team for the great work.
Best regards from Bielefeld!
Roman Lewakow
Amazon Retailer
Absolutely professional, helpful and friendly. The content that is taught is also conveyed perfectly. Everything went to my complete satisfaction. Highly recommended.
Stefan Kunz
Photographer
Super, can only be recommended, navigates you safely through the start-up jungle
Karsten Kunde
Management Consultant
Super friendly and competent advice, highly recommended - especially Mr Deuble!!! 👌🏽 Best regards
Schönen Gruß
Benjamin Gergin, Juwelier
