8 types of grants for young entrepreneurs

In Spain, there are various support measures and grants for new projects. For this reason, if you want to consolidate your business idea but lack sufficient capital, you may be eligible for aid for young entrepreneurs.

These aid schemes may, however, be subject to certain requirements. It is important for you to understand what they involve, which bodies grant them, and every detail of how they work, because this determines whether they are suitable for you.

In this article, we will discuss 9 types of grants for young entrepreneurs. You will learn about major programs and laws that have helped hundreds of projects get off the ground in Spain.

Flat rate for new self-employed workers

Spanish law can be accommodating toward new self-employed workers. This is reflected in the flat rate (tarifa plana), which serves as aid for young entrepreneurs who have registered with the Social Security Special Scheme for Self-Employed Workers (Régimen Especial de Trabajadores Autónomos).

If you have just started paying contributions, the system allows you to pay a lower contribution than other contributors, without any reduction in your entitlement to social benefits.

As regards Social Security, some benefits apply to many self-employed workers and fall within the category of aid for young entrepreneurs. They include the following:

• Contribution relief (bonificación) for common contingencies during leave for birth, adoption, or foster care. In addition, for women, the relief applies for 24 months, provided there is no temporary incapacity.

• For self-employed workers with disabilities and victims of gender-based violence and terrorism, a contribution reduced to 80% applies for two years.

• 75% relief for the care of minors affected by serious illnesses.

• For family-member self-employed workers (autónomos colaboradores), there is 50% relief for the first 18 months and 25% relief for the remaining 6 months.

Public grants to promote self-employment

These aid schemes also seek to encourage self-employment by awarding grants to young entrepreneurs. They include the following:

• Training aid: Resources are allocated to professional training in management, new technologies, and business administration. The amount is usually capped at €3,000 and covers 75% of the total cost of the course or program.

• Interest-rate reductions: Financing support can be provided by reducing the interest on loans by up to 4 percentage points, subject to a cap of €10,000.

• Technical assistance: Partial financing may be obtained to improve business activities.

• Setting up as a new self-employed worker: The amounts may vary and depend on how difficult it is to access the labor market. Variables such as age, sex, or disability are also taken into account. The maximum, however, is €10,000.

Regional entrepreneurship aid

The Autonomous Communities (regions) may also grant aid for young entrepreneurs directly. This aid is also available to older people, but the aim throughout is to promote various local and regional projects. These regions have bodies that manage grants both for established projects and for projects that are just getting started.

Aid for young entrepreneurs: ICO loans

ICO (Instituto de Crédito Oficial, the Official Credit Institute) loans have been designed with special packages for small businesses and self-employed workers or entrepreneurs. They can be very useful if you need some financing. Agreements must be entered into with banks, and the requirements must be met.

Enisa (participating loans)

Enisa is another excellent option for young entrepreneurs seeking participating loans (préstamos participativos). It has many lines of financing to drive projects, especially those considered most innovative.

To apply, however, the company must already exist and have 50% of the capital needed to carry out its activities. Enisa may then finance the other half.

CDTI Neotec grants

If you are involved in technology, the Neotec program may be for you. Its aim is to support companies that rely on technology for their products or for their operations in general.

To qualify as a beneficiary, however, applicants must have developed their own technology and offer something distinctive. Another condition is that companies must not be more than 3 years old.

European Union aid

The European Union also provides many types of aid for young entrepreneurs and for businesses in general. These include the following:

• Erasmus for Young Entrepreneurs program: This program enables young people to receive training from a highly experienced entrepreneur, who may be from any EU member state.

• Eureka program: This program boosts the competitiveness of industrial companies to create new markets. It is also a great source of inspiration for business improvement.

• Horizon Europe: This program offers aid for feasibility studies and innovative business plans.

• EIC Accelerator: This program provides financial support in different categories, through grants of up to €2.5 million and investments of up to €15 million.

Kit Digital

This is an initiative promoted by the Ministry of Economic Affairs and Digital Transformation. Its purpose is to enable many self-employed workers and small businesses to digitalize their operations.