First: Jobcenter and support for small business projects (ALG II / Bürgergeld)
Who is it for?
People who are registered with the Jobcenter and receive Bürgergeld (formerly Hartz IV).
Those who have a business idea and want to move from unemployment into self-employment (Selbständigkeit).
Types of support the Jobcenter can offer
1. Einstiegsgeld (start-up allowance)
A monthly additional payment for 6–24 months.
Usually between €150–€300 per month.
The goal is to compensate the risk of losing financial security when moving into self-employment.
It is a discretionary benefit (Ermessensleistung), not a guaranteed legal right.
2. Investitionszuschuss (investment grant for equipment)
One-off financial support to equip your business, e.g.:
laptop, tools, printer, basic equipment, raw materials, etc.
The amount depends on your needs (typically €1,000–€5,000).
You must submit a convincing business plan plus a detailed cost list.
The Jobcenter will examine your application and assess the seriousness and viability of the project.
3. Training courses or consulting (AVGS voucher)
The beneficiary can receive a free AVGS voucher to attend courses or coaching on:
Entrepreneurship / starting a business
Accounting and bookkeeping basics
Preparing a business plan
General conditions at the Jobcenter:
You must be fit for full-time work (vollzeitfähig).
The project must be economically viable.
You have to present a clear and convincing business plan (business plan + financial plan).
You must prove sufficient knowledge or at least a strong willingness to learn (e.g. relevant courses or previous experience).
Second: Gründungszuschuss (from the Employment Agency – Agentur für Arbeit)
Who is it for?
People who receive unemployment benefit I (ALG I), not Bürgergeld.
They plan to start a self-employed activity before their ALG I entitlement ends.
What do you get?
Phase 1 (first 6 months):
A monthly amount equal to your full ALG I entitlement
+ €300 per month as a supplement for social insurance contributions.
Phase 2 (optional, additional 9 months):
€300 per month, solely as a contribution towards social insurance.
Conditions for the Gründungszuschuss:
At the time of application you must have at least 150 remaining days of ALG I entitlement.
You must provide a strong business plan.
You need a viability certificate (Tragfähigkeitsbescheinigung) from, for example, the pension insurance (Rentenversicherung), the IHK, or another recognised body confirming that your project is viable.
You must be officially registered as a business (Gewerbe) or as a freelancer.
Comparison: Jobcenter vs. Gründungszuschuss
| Aspect | Jobcenter (Bürgergeld) | Employment Agency (ALG I) |
|---|---|---|
| Type of support | Einstiegsgeld + additional grants | Gründungszuschuss |
| Target group | Recipients of Bürgergeld | Recipients of ALG I |
| Monthly support | Around €150–€300 extra | ALG I + €300 (phase 1), then €300 |
| Equipment / investment aid | Possible (investment grant) | Generally not granted |
| Training / coaching | Often via AVGS voucher | Sometimes, depending on the case |
| Flexibility of approval | Relatively flexible, discretionary | More strict and bureaucratic |
Important notes
Support from the Jobcenter is especially useful for very small projects or home-based one-person businesses.
Support from the Employment Agency (Gründungszuschuss) is better suited to people with a strong employment history who want to make a quick and structured start into self-employment.
A strong and convincing business plan is the cornerstone in both programmes.
Financial support can be combined with free training and coaching.
The authors and editorial team of the website strive to provide accurate information based on intensive research and multiple sources. However, errors may occur or some details may remain uncertain. Please consider this information as an initial guide only and always contact the competent authorities, Jobcenter / Employment Agency or professional advisors for binding and officially reliable information.
