Germany provides several programs to support entrepreneurs and new business founders. These include startup grants from the employment office for unemployed individuals, consulting services on entrepreneurial know-how through programs like ESF, and loans from the Reconstruction Loan Corporation (KfW) including different loan types for founders based on needs. Additionally, the EXIST foundation provides grants for technology and science-based startup ideas from university students. Overall, the German government has created a supportive environment for new business through advisory services, grants, and low-interest loans.

1. Founding a business in Germany

2. years
FoundersPopulation
Age range (in %)
Comparison of population/founders

3. But how do they finance their new businesses?

4. Erasmus+
Economic grants for business foundation
in Germany

5. Outline
• Promotion of entrepreneurial „Know How“
• Start-up grant from the employment office
• Reconstruction loan corporation (KfW) and the funding for setting up
business
• EXIST foundation grants

6. New advisory guidelines from Federal Office of Economics and Export Control 2016
summarizes the previous programs:
• “Promotion of entrepreneurial know-how through company consulting“
• “Foundationcoaching Germany“
• “Turn Around Consultancy“
• “Round Table“
Promotion of entrepreneurial “know-hows “

7. Promotion of entrepreneurial “know-hows “
European Social Fund
(ESF)
KfW is financially involved.

8. Promotion of entrepreneurial “know-hows “
Companies from the third year after the founding
(holdings)
Who is sponsored?
Young companies

9. Promotion of entrepreneurial “know-hows “
What is promoted?
Advise in questions wich every founder have

10. Promotion of entrepreneurial “know-hows “
Special consultations
additional advisory services can be promoted in addition to the topics of general
consultation.
These advice for problems like:

11. • Migrant women or migrants
• work organization for employees with disabilitie
• production and safeguarding of skilled workers
• promote equality
• work and family life
• contribute to sustainability and environmental protection.

12. Promotion of entrepreneurial “know-hows “
type of company Basis of assessment average rate of aid maximal subvention
Young Companies that are
Not older than 2 years
4.000 Euro
80 % 3.200 Euro
60 % 2.400 Euro
50 % 2.000 Euro
Companies from the third year after the founding 3.000 Euro
80 % 2.400 Euro
60 % 1.800 Euro
50 % 1.500 Euro

13. Erasmus+
Start-up grant
Employment office

14. Erasmus+
The start-up grant
• Unemployed persons who want to do independent work
Leads to Fast integration into the
working process

15. Erasmus+
Documents All the documents you need to apply for the start-up grant
Curriculum vitae Business license Business plan

16. Erasmus+
Application
• Talk to your administrator to make sure that you want to become self-employed
• Support from the Employment office with seminars
• Don´t miss any deadlines for the grant
• Employment office is not comitted to grant you the founding grant It´s at the mood of
your officer

17. Conditions
It´s just possible to get financial help of the
employment office when you have been
unemployed before
You have to work 15 hours per week to
keep the grant
You should know your skills and abilities

18. Erasmus+
Amount, duration and payment terms
2 periods
First 6 months
Monthy unemployment benefit + 300€
for the social protection
9 months
300€, if you can confirm that you are active in your
business
After two years the whole process can be repeated

19. Erasmus+
The reconstruction loan corporation and the financing for
founding a business

20. Federal Republic of Germany:
80 %
Federal States of Germany:
20 %
100 % state-owned
responsibility for debts and loans

21. Founding of the KfW
WHY?
To finance the reconstruction of the German economy after Word War II
HOW?
Starting capital was taken from European Recovery Program (ERP), also known as the
Marshall Plan

22. small and medium-sized
enterprises and founders of new
businesses
Infrastructure Housebuilding
Energy-saving concepts Student loans
Promotion of …

23. Professional advice from commercial banks, saving banks, direct banks etc.
Examination of creditworthiness and passing on of credit application to the KfW
KfW checks if all conditions for a promotion are fulfilled, if yes  promise of a credit
Advisor provides further information regarding credit terms
How to get a credit from the KfW:

24. ERP support (European Recovery Program) - Different types of credits
Capital for foundation Credit for founders - universal
Qualifications 10-15% own capital no own capital needed
Support -Amount of credits up to 500.000 €
-100% release from liability
-Amount of credits up to 25m €
-100% realease from liability
Interest rate 0,4% customised

25. ERP support (European Recovery Program) - Different types of credits
Start money Coparion
Qualifications -Professional commercial know how
-Company is not older than 5 years
-Technology company
-Launch of new product
-Company is not older than 10 years
-Another lead investor to share the costs (same
amount for both)
Support -Amount of credits up to 100.000 € -Amount of credits up to 10m € (if lead investor
invests same amount)
Interest rate 2,07%

26. Erasmus+
EXIST foundation grant
• Supportprogram from the German federal ministry for economy and energy
• Goal: Reaching a higher interest in founding new companies at colleges, and reaching a
better outcome
• Who can be supported?
- College students from a college with is involved in the network
-Type of idea: In the field of technolgy and science research

27. Phase 1 Phase 2 Phase 3
What? Preparation Founding and develop business Start money: 25.000€
Company has to provide money as 3:1
How much? Up to 3000€
As a group: 30.000€
Coaching up to 5000€
Up to 250.000€ 180.000€ or
75% of the expenses
Durability 1 year 1 ½ years
Or 3 years
Up to 18 months

28. Thank you for your attention!

29. Sources
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