Are you with Jobcenter? Why You May Actually Have More Support for Your Self-Employment Than You Think.

When people come to me considering self-employment, they often say: “Too bad I’m with the Jobcenter. I wish I was with the Agentur für Arbeit so I could apply for the Gründungszuschuss.”

Here’s the little secret from my coaching room: in many cases, you may actually be better off with the Jobcenter. Why? Because while you can’t get the Gründungszuschuss, the Jobcenter offers other types of support that are often bigger, more diverse, and longer-lasting.

Let’s break it down.

No Gründungszuschuss, But Something Better

It’s true: the Gründungszuschuss is only for people receiving ALG I from the Agentur für Arbeit. If you’re with the Jobcenter (receiving ALG II), you won’t be eligible.

But don’t stop reading here. Because in exchange, you may have access to:

1. Einstiegsgeld (Start-up Allowance)

2. Sachmittelförderung (Material/Equipment Support)

And together, these can sometimes add up to more value than the Gründungszuschuss itself.

Not sure what Gründungszuschuss is? you may find this article helpful: What is Gründungscoaching? A Simple Guide for Aspiring Entrepreneurs in Germany — DH

Einstiegsgeld: A Monthly Boost While You Build Your Business

Einstiegsgeld is a financial allowance you can receive when starting your business while on ALG II. The exact amount is individual — it depends on your situation, household, and sometimes your advisor’s discretion.

Here’s what you need to know:

• It can last up to 24 months (much longer than the Gründungszuschuss).

• It’s meant to ease the transition so you don’t immediately fall into financial stress.

• The amount varies, but it’s designed to motivate and stabilize you in your startup phase.

Sachmittelförderung: Funding for Your Tools and Setup

This is one of the most overlooked perks of being with the Jobcenter. Through Sachmittelförderung, you can get financial support for the equipment and materials you need to start your business.

Examples include:

• Laptop or software.

• Website costs.

• Marketing materials.

• Tools or machinery specific to your trade.

I’ve seen clients receive several thousand euros this way. Think of it as a startup kit that sets you up with the essentials so you don’t have to drain your personal savings.

Bürgergeld and Expense Coverage

Here’s something most people don’t know: while you’re with the Jobcenter and starting your business, you may also continue to qualify for Bürgergeld, as well as additional help covering your expenses such as rent, gas, and electricity.

This support can last up to 24 months — which is, more or less, what the Jobcenter considers the average time it takes for a business to pick up and start generating substantial income.

I’m only mentioning this briefly here, because it’s a very deep topic that deserves its own article. But from what I’ve seen in my coaching practice: the Jobcenter’s support is often far more comprehensive for new founders than most people realize.

A Coaching Room Secret: Why the Jobcenter May Be Better

Here’s my candid take after years of working with clients:

While the Gründungszuschuss looks attractive on paper, the Jobcenter’s support often wins in the long run. Why?

• More time: Einstiegsgeld can last up to 24 months, compared to 15 months max with the Gründungszuschuss.

• More variety: With Sachmittelförderung, you get direct funding for tools and materials — something the Gründungszuschuss doesn’t cover.

• More security: The Jobcenter can also continue covering your living costs and essentials, giving you space to stabilize your income.

So, if you’re starting your business from ALG II, you may actually have an advantage.

Real Talk: What It Takes to Get Approved

Just like with the Gründungszuschuss, the key person is your caseworker. They decide whether you qualify, how much you get, and for how long.

Here’s what strengthens your case:

• A clear business idea backed up with a structured plan.

• Demonstrating your seriousness and readiness to commit.

• Showing how the funding (Einstiegsgeld or Sachmittelförderung) will directly support your success.

And of course, you don’t have to figure this out alone. This is where Gründungscoaching comes in — preparing you with the right blueprint, documents, and confidence to present your case. The Jobcenter can also fully grant you an AVGS voucher to cover support from a founder’s coach (Gründercoach). I’ve covered the details in this article: What is Gründungscoaching? A Simple Guide for Aspiring Entrepreneurs in Germany.

Common Mistakes to Avoid

1. 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:

• Don’t Choose an AVGS Coach Before Reading This

• The Downside of AVGS Vouchers: When Free Career Coaching Isn’t Freeing

2. Not showing commitment. Caseworkers want to see that you’re serious about being self-employed, not just avoiding job applications.

3. Trying to do it all alone. Going solo can lead to rejection — support can make the process smoother, faster, and more convincing.

Why This Matters

Being with the Jobcenter doesn’t mean you’ve missed out. On the contrary, it may give you more generous and flexible support to build your business.

Instead of seeing it as a disadvantage, see it as an opportunity: more time, more resources, and more security as you create your new horizons.

Your Next Step

If you’re with the Jobcenter and considering self-employment, don’t dismiss your chances. You may have access to Einstiegsgeld, Sachmittelförderung, and even Bürgergeld support — a package that can carry you further than the Gründungszuschuss.

Want to find out how to navigate these options and maximize your support? Book a free call with me today, and let’s talk about your business idea and how to present it to your advisor.

Not yet ready for a call but have questions? Reach out via email or WhatsApp — I’ll gladly help you see what’s possible.

Until our next breakthrough!