Incentives and aid for young entrepreneurs

Launching a business requires a combination of many factors: creativity, determination, an innovative business solution, and, of course, financing. Access to capital is one of the main concerns of every founder, especially the youngest ones. That is why, among the various forms of aid and grants for entrepreneurs, several are specifically aimed at this group.

STATE AID FOR YOUNG SELF-EMPLOYED WORKERS

The State allocates resources to help young self-employed workers get their businesses off the ground, with the aim of enabling their ideas to become a reality and generate employment and wealth.

€7,500 aid for young self-employed workers

This aid is intended to help unemployed people become self-employed workers and also to support the consolidation of their project.

The beneficiaries are unemployed persons registered as jobseekers who set up as self-employed workers.

The amount will be up to €7,500, graduated according to the applicant’s difficulties in accessing employment.

In this case, the aid is increased by a further €500 if the applicant is a woman.

Contribution relief (bonificación)

The flat rate for self-employed workers (tarifa plana) is one of the measures most sought after and most widely used by newly self-employed workers.

Its purpose is to promote self-employment, and it consists of paying a reduced monthly Social Security contribution for one or two years before joining the contribution system based on actual income.

The initial contribution would be around €80, with slight variations depending on the coverage selected.

This is a very useful relief because it reduces the cost of registering as a self-employed worker for the first time and helps newly self-employed workers take their first steps.

If you meet the requirements to access it, do not hesitate to apply. You will be able to start your activity, which usually generates less income at the outset, while paying a lower monthly contribution. It will be a relief for you and your business.

Financial aid for young self-employed workers

This financial aid consists of contributing to the financing of investments through a reduction of up to 4 percentage points in the interest rate set by the credit institution that granted the loan.

The maximum amount eligible for the subsidy is €9,000, and it will be paid as provided in the regulatory bases (bases reguladoras) approved by the competent public authorities.

Reducing financial expenses is another way to avoid having to meet excessively high monthly installments.

REGIONAL AID FOR YOUNG SELF-EMPLOYED WORKERS

In addition to what can be obtained through the various forms of State aid, all the grants and contributions provided by the Autonomous Communities (regions) are also very important.

If you are going to start an activity, it is highly advisable to visit the website of the Autonomous Community where your business will be carried on. Regional aid is usually available for a period of time and then disappears.

In addition, there is usually specific regional aid for young self-employed workers, so it is well worth taking it into account.

Full reimbursement of the contribution

The so-called “zero contribution” (cuota cero) schemes are in force in several Autonomous Communities, such as Andalusia, Madrid, Murcia, Extremadura, Galicia, or the Canary Islands.

They consist of subsidizing the Social Security contributions arising from registration as a self-employed worker under the Special Scheme for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos).

The requirements for applying for this aid include that the activity be carried on in the region where the application is filed and that the applicant have benefited from the reduced State contribution for 12 months.

These measures initially last for one year. In some cases, they can be extended to two years.

Other regional aid

In addition to the zero contribution scheme, each Autonomous Community usually offers some aid for specific sectors of activity or for persons with certain characteristics or meeting certain requirements.

There is normally aid aimed at young people who wish to start an activity.

In Andalusia, for example, a good illustration is aid of up to €5,000 intended to encourage the start of an activity. This amount can be used to cover all the expenses necessary to get the business up and running.

However, all of this may change from time to time, so it is best to check the relevant website to see what aid and grants you may be eligible for as a young self-employed worker.