Table 3 Self-employment promotion schemes of active labor market policy
Bridging allowance | Discretionary start-up support | Self-employment training | Self-employment coaching | |
|---|---|---|---|---|
Target group | Individuals who are entitled to unemployment benefit and who wish to start a new business | Individuals who wish to or who have started a business from a position of unemployment | Individuals who plan to become self-employed | Individuals who have started a business |
Focus | Transition costs; financial support | Regional policy | Preparation and skills | External expertise, improved learning |
Benefits | Coverage of living expenses during the first six months plus extra payment for social security contributions payments are limited to the level of (potential) unemployment benefit | Flexible (experimental) types of support during the transition period, start-up period or the early period of self-employment | 4 to 12 weeks of training | Coverage of coaching costs, travelling expenses and expenditures on child care |
e.g, allowances for living expenses, technical equipment | Coverage of training fees, travelling expenses and expenditures on child care | Free selection of the coach to address individual topics (usually tax advisors or business consultants) | ||
Free selection of the course (usually professional training centers) | Support can be used for a periodic support, on demand or for support at a stretch | |||
Requirements | Self-employment activity ends or avoids unemployment | Does not conflict with the general directions of active labor market policy | Entitled to receive regular support under the Social Code Book III—e.g. planned to apply for bridging allowance | Receiving support under Social Code Book III—usually bridging allowance |
63 years of age an younger | Only if other schemes (including national or regional business development programs) are not possible | Preparing a start-up | Limited topics since 03/2003 (marketing, business development, psychological help) | |
Positive assessment of the business concept | Limited to a total expenditure of no more than 10 % of the regional integration budget | Subsidies are limited to a one-year period after start-up | ||
Evidence of new business activity or the start-up (difficulties in cases of a business buyout) | Individual specific/ problem, oriented topics | |||
Validity period | Started in 1986; reformed in August 1994; changes made in 1997, 1998 and 2001; termination in 2006 | Started in 1998 | Started in 1998; restarted in 2000, several changes; terminated in 03/2003 | Started in 1998; restarted in 2000, several changes; terminated in 2006 |
Total payment up to 9.000 € (until 03/2003), and 4,600 € between 02/2000 and 3/2003 | ||||