Subsidies for starting a business

Subsidies for starting a business

There are people who have never worked for anyone else, always working for themselves. They usually spent a long time preparing to start a business and, as a result, kept track of information about various start-up grants available from different sources. There is also a large group of people who worked in corporations and were suddenly forced to become entrepreneurs. They have less idea where to get funding to start a business.

Where to get grants for starting a business

Who has money? Banks, of course. And banks naturally have a wide range of loans for entrepreneurs. All you have to do is fill out an application and you can get the money. Right? Except that this wide range of loans is only available to companies that are already operating. We are interested in money for entrepreneurs who are eager to start their own business. The range of loans available to start-ups is much more limited. Only a few banks offer them, and you have to meet specific, stringent requirements. And then you have to repay the loan. But there are also grants. If certain conditions are met, you don't have to repay them.

Subsidies for starting a business from the employment office

Employment offices in Poland are somewhat of a relic of a long-gone and rightly so political system. However, they also offer something that is relevant to the current economic reality. These are subsidies for starting a business. Unfortunately, employment offices do not usually offer such subsidies all the time. There is not enough money, so you have to wait until the next call for applications is announced. Your own contribution is welcome. Depending on its amount, you can count on a more favorable consideration of your application. In some offices, it is absolutely required. The amount of the subsidy you can count on is over PLN 30,000. Its amount depends on the average salary in the enterprise sector.
For one year after receiving the subsidy, you cannot take up employment with anyone else. However, after a year, even if the business fails, you do not have to return the money, provided that you keep the company running.

European Union grants for starting a business

Funding from the European Union is currently mainly allocated to innovative projects, solutions not found elsewhere, which drive the economy forward. It is certainly more difficult to obtain funding for opening a local greengrocer's than for a company planning a revolutionary application. The amount of the subsidy can reach PLN 40,000, and a personal contribution is always required. The conditions for obtaining a subsidy depend on the province.
European subsidies for starting a business are targeted at different groups. And so:
– for people under 30 who are unable to study or work. Here, assistance in finding a job and in the form of training is also offered;
– for people over 30 who are not professionally active and cannot find work;
– for unemployed women;
– for people over 45;
– for the long-term unemployed;
– for people with disabilities;
– for people with basic education.

How to obtain subsidies for starting a business from the employment office

There are no subsidies for starting a business for people who are employed. To be eligible for a subsidy from the employment office, you must be unemployed and your dismissal must not have been your fault. But there are many more conditions. For example, when applying for a subsidy, you cannot have suspended your business activity or run it during the last year. You cannot refuse an offer from the employment office, you cannot be subject to court proceedings, etc.
The requirements of employment offices may vary, so it is worth finding out first about the requirements of the office where you will submit your application. The office responsible for you is the one where you live, reside, or where you want to start your business.
You submit your application to this office. To apply for a grant, you must have a so-called second assistance profile, i.e., the office must determine that you are suitable to be an entrepreneur.
You must have two guarantors. Nowadays, finding a guarantor for more than PLN 30,000 is not an easy task. If you fail to meet the terms of the agreement and, for example, give up your business, take up full-time employment and do not want to return the grant, your guarantors will have to return it for you.

Applications for a grant to start a business are usually considered in the order in which they are submitted. Unfortunately, this is not a competition. So there is no point in waiting. As soon as your application is ready, you should submit it.
Regardless of whether you submit an application, the employment office may refer you to various training courses that have nothing to do with running a business. You are required to participate in them. You can only try to convince the official not to issue a referral before your application is considered.

With EU funding for starting a business, the matter is more complicated. These types of subsidies are very diverse. You need to start by finding out what subsidies are available in your area and choose something that suits you.
A business plan is an essential part of an application for EU subsidies for starting a business. And it has to be a good business plan. Once the application has been approved, you can count on meaningful training.
Applications for EU funding to start a business are evaluated in two stages. First, they are evaluated in terms of form, i.e., whether they contain all the required elements. In the second stage, the substantive value of the application is evaluated.
EU funds cannot be spent on anything that was not included in the application. This is closely monitored and may result in the need to return the subsidy. After the project is completed, you must settle the subsidy in detail.