Unemployed? Don’t Miss Out on This Startup Grant: The Gründungszuschuss Explained
If you’re unemployed in Germany and dreaming about starting your own business, you may be sitting on an opportunity worth thousands of euros — without even realizing it.
It’s called the Gründungszuschuss, or startup grant. And if you’re eligible, it can give you the financial breathing space you need to build your business without the immediate pressure of covering all your living expenses from day one.
So let’s break it down: what the Gründungszuschuss is, who can apply, how it works, and why it could be the push you’ve been waiting for.
What Is the Gründungszuschuss?
The Gründungszuschuss is a financial support program offered by the Agentur für Arbeit (Employment Agency). It’s designed for people who are unemployed but want to become self-employed.
Think of it as a safety net that gives you a bit of runway while you launch your business. Instead of panicking about how to pay rent in your first few months, you get a grant that helps cover your basic living costs.
Who Can Apply?
To qualify, you need to meet certain conditions:
You are receiving unemployment benefits (ALG I).
You still have at least 150 days of entitlement to ALG I left when you apply.
You can prove that your business idea is viable (usually with a business plan and financial forecast).
And here’s something important: if you are not eligible to register with the Arbeitsamt, but you are eligible with the Jobcenter, you may not qualify for the Gründungszuschuss — but you could actually access alternative support programs instead. In fact, many people are surprised to learn that Jobcenter support can be bigger, more diverse, and longer-lasting than what’s available at Arbeitsamt.
But what if you don’t have a business plan yet? Don’t worry. You can get another type of support: founder’s coaching (Gründungscoaching). In this program, you work with a certified coach to create your business plan, test your idea, and build your roadmap. I explain the details in my article: What is Gründungscoaching? A Simple Guide for Aspiring Entrepreneurs in Germany.
Don’t miss out on this opportunity — depending on the hours you’re granted, Gründungscoaching can be worth anywhere between €1,000 and €10,000. Too many people leave this money on the table. Trust me: for many, being unemployed in Germany is not just a challenge, it’s also a blessing in disguise.
How Much Money Do You Get?
The Gründungszuschuss comes in two phases:
Phase One (6 months): You receive your full unemployment benefit (ALG I) plus a flat €300 per month for social security contributions.
Phase Two (additional 9 months, optional): You can apply for an extension. If approved, you continue to receive the €300 monthly support.
In total, that’s up to 15 months of financial support while you build your business.
How to Apply
Here’s a simple breakdown of the steps:
Prepare a business plan. This should include your idea, target market, marketing strategy, financial forecast, and why your business is viable.
Get an expert opinion. Your plan needs to be validated by an external expert (such as a chamber of commerce, bank, or professional association).
Meet with your caseworker. Submit your plan and application at the Agentur für Arbeit.
Wait for approval. If your caseworker is convinced, you’ll be granted the Gründungszuschuss.
Pro tip: A strong business plan makes all the difference. Many people work with a coach to prepare this because it significantly increases the chances of approval. If you are considering to work with an AVGs coach, you may find this article helpful: Don’t Choose an AVGS Coach Before Reading This! Not sure what AVGs is? this article is a must: AVGS Voucher Explained – Unlock Free Coaching and Training
Common Mistakes to Avoid
Waiting too long. You need to apply while you still have at least 150 days of ALG I left. Don’t miss this window.
Weak business plan. A half-baked idea won’t get approved. Put in the effort to make it professional.
And by the way — when I say don’t skip coaching, I don’t mean any coaching. Make sure you work with an experienced Gründungscoach who knows the German system inside and out. I explain how to choose the right coach in my article: What to Consider When Hiring a Career Coach: A Step-by-Step Guide.
If you’re looking to finance your coaching through an AVGS voucher, there are some very specific rules attached. Many of my clients were surprised by them, so I wrote these two articles to provide transparency upfront:
Not showing commitment. Caseworkers want to see that you’re serious about being self-employed, not just avoiding job applications.
Trying to do it all alone. Going solo can lead to rejection — support can make the process smoother, faster, and more convincing.
Your Next Step
If you’re unemployed and considering self-employment, the Gründungszuschuss could be the bridge between your old cycle of job hunting and your new blueprint as a business owner.
Ready to explore if this grant is right for you? Book a free call with me today, and let’s talk about your business idea and how to set up your application for success.
Not ready to book a call yet but still have questions? Reach out directly via email or WhatsApp — I’ll be happy to help you navigate the options.
Until our next breakthrough!
