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Criteria and Requirements for Unemployed Entrepreneurs
If you are unemployed and want to start your own business, you should - just like all other foundersmeet certain criteria and requirements. In addition to professional qualifications, you should ideally possess initiative, decisiveness, and perseverance.
So the key is: first check whether your personal prerequisites are in place.
A list of helpful checklists and questionnaires that can support your decision for or against self-employment can be found, for example, on the Federal Government’s Existenzgründerportal (business start-up portal) or on the Gründerplattform.
Getting Started with Entrepreneurship
You can assess whether your business idea is viable by talking to start-up advisors from your local Chamber of Commerce and Industry (IHK) or Chamber of Crafts. The Employment Agency (Agentur für Arbeit) also offers a contact point for prospective entrepreneurs. These experts can provide you with basic information about starting your business and refer you to other helpful contacts for further advice.
Part-Time Self-Employment While Unemployed
Many founders receiving unemployment benefits start by testing self-employment on a part-time basis to see if it’s the right path for them. In such cases, unemployment benefits will continue to be paid as long as the time spent on self-employment does not exceed 15 hours per week.
Monthly earnings from self-employment that exceed €165 (the tax-free allowance) will be offset against your unemployment benefits (ALG). Here, 30% of business income is automatically considered business expenses and therefore not counted as income (higher expenses can also be taken into account if you can provide proof).
Full-Time Self-Employment While Unemployed
If you start a business full-time while unemployed and meet the necessary requirements, you may be eligible for financial support:
- Gründungszuschuss (start-up grant) from the Federal Employment Agency if you receive ALG I (unemployment benefit I)
- Einstiegsgeld (start-up subsidy) from the Jobcenter if you receive ALG II (unemployment benefit II)
There are also other funding opportunities you can inquire about and utilize—for example, low-interest loans from the KfW Bank, the Mikrokreditfonds Deutschland (Microcredit Fund Germany), or the Mikrodarlehen in MV (microloan in Mecklenburg-Vorpommern) provided by the Gesellschaft für Struktur- und Arbeitsmarktentwicklung mbH Schwerin (GSA).
Start-Up Support in Mecklenburg-Vorpommern
To prepare for starting a business, entrepreneurship seminars are offered throughout Mecklenburg-Vorpommern. Participation in basic courses is supported in M-V through education vouchers, which can be applied for at the Gesellschaft für Struktur- und Arbeitsmarktentwicklung mbH Schwerin (GSA).
Tip
Below we’ve listed some interesting brochures, flyers, and articles that provide in-depth information on starting a business while unemployed:
- “Founding - short and sweet” (Federal Ministry for Economic Affairs and Climate Action)
- “Start-up aid - the successful path to independence” (Federal Ministry for Economic Affairs and Climate Action)
- "Information and help for setting up a business - a guide to self-employment" (Employment Agency)
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