Light entrepreneurs and start-up money
Start-up money is intended for supporting new businesses and is a big question for many people planning to start operations as light entrepreneurs. We will explain what start-up money actually is, how much of it can you get, and if a light entrepreneur is eligible to receive start-up money.
What is start-up money?
Start-up money is a grant for new entrepreneurs. Its intention is to promote the establishment of new businesses and improve employment opportunities. The primary purpose of start-up money is to lower the threshold of getting started as an entrepreneur by securing a new entrepreneur’s income during the first phases of their business.
The start-up money is granted by the TE office. You can apply for the grant at your local TE office.
How much start-up money is granted?
The amount of start-up money is equal to the basic daily allowance. Therefore, in 2022, the daily start-up money was 34,5 euros. The grant is paid at most for five days per week, excluding weekends.
The monthly start-up money is approximately 700 euros. It is not included in the business’ revenue but is instead counted as personal income for the entrepreneur.
Can a light entrepreneur receive start-up money?
As a light entrepreneur, you do not start up your own business, and therefore, do not have your own Business ID. At the moment, start-up money is granted only when establishing a new business. Hence, light entrepreneurship does not meet the requirements for being granted start-up money.
However, light entrepreneurship is a great way to sell your own work in a cost-efficient and accessible way. You do not have to bother with the ins and outs of complicated bureaucracy or filling and sending all sorts of forms. Additionally, you are not obligated to keep accounts.
On top of all this, your experience as a light entrepreneur will come to help you in the future, in case you decide to become a full-fledged entrepreneur. Operating as a light entrepreneur teaches you the realities of an entrepreneur’s everyday life and provides you with valuable experience for operating a business of your own.
On top of all this, your experience as a light entrepreneur will come to help you in the future, in case you decide to become a full-fledged entrepreneur. Operating as a light entrepreneur teaches you the realities of an entrepreneur’s everyday life and provides you with valuable experience for operating a business of your own.
Who is eligible for start-up money?
In order to be granted start-up money, you need to meet certain requirements:
- Operating the new business has to be full-time and ongoing.
- The applicant needs to be sufficiently prepared for the planned business.
- The applicant should also be sufficiently prepared for operating a business.
- The applicant has a business plan and the required calculations as proof of profitability.
- Practical matters, such as financing, possible permits, and premises are taken care of.
A light entrepreneur should keep in mind the requirements of operating a business. Earlier operations as a light entrepreneur can be an advantage in case you decide to become a full-time entrepreneur in the future and establish your own business.
Obstacles to granting start-up money
When applying for start-up money, make sure to keep in mind some possible obstacles that can stop you from receiving the grant. The most important one is timing. You cannot be granted start-up money if the business has been founded before receiving approval for the grant.
Another possible obstacle to granting start-up money is the applicant’s current operations as a full-time entrepreneur, a comparable position in a limited liability company, and other income or payment defaults. The grant may not be granted if the financial risk of starting the business is too low and the business can be expected to provide the applicant with a reasonable amount of income from the very beginning.
Light entrepreneurship and start-up money – Things to remember:
- Start-up money is granted by the TE office for securing an entrepreneur’s livelihood when establishing a new business.
- Light entrepreneurs are not eligible for receiving start-up money as it requires a Business ID.
- Working as a light entrepreneur is an advantage for future entrepreneurship and provides the experience needed for operating a business in case you decide to apply for start-up money in the future.
