Five things you should know about the start-up grant

The start-up grant is a need-based grant whose purpose is to secure the livelihood of new entrepreneurs when they are just starting their business. The grant is paid for up to twelve months. The service is provided by the TE Office in collaboration with the pilot municipalities of Uusimaa. Business Helsinki’s advisors Pia Partanen and Valentin Babitzin listed five key facts that you should know when applying for the start-up grant for your new business.

1. What is the purpose of the start-up grant?

The primary purpose of the start-up grant is to secure the livelihood of new entrepreneurs when they set up a new company and their business is just taking off. At the start, the company’s income may not be sufficient to cover the entrepreneur’s living expenses, and the start-up grant’s purpose is to help in this situation. It provides the entrepreneur with economic support and allows them to focus on developing and establishing their business.

2. How much is the start-up grant?

The amount of the start-up grant is the same as the amount of basic daily allowance. In 2024, the start-up grant is €37.21 per day or around €740 per month. Remember that the grant is taxable income, meaning that you must pay taxes for the income just as for any other income. The start-up grant is granted for six months, after which you can apply to have it continued for another six months, if certain requirements are met. The start-up grant is paid as monthly instalments.

3. Who can receive a start-up grant?

Several groups can apply for a start-up grant, such as unemployed persons, employed persons who want to start up a business, and students that become full-time entrepreneurs immediately after graduation. A person planning to expand their secondary occupation as an entrepreneur to a full-time occupation can also receive a start-up grant. A start-up grant can be paid in addition to certain benefits, such as the housing allowance.

4. When is a start-up grant not granted?

A start-up grant is not granted if the business has already started its operations. This means you should not register your company before you receive a decision on a start-up grant! If your business can support you to a sufficient level from the beginning, you are not eligible to receive a start-up grant. You are also not eligible if you receive other income, such as wage income, daily allowance for parents, pension or the study grant. In addition, if you have a payment default entry or tax debt, these may have a negative effect on your start-up grant decision. For more information, contact the Uusimaa TE services(Link leads to external service).

5. What do I need for applying for a start-up grant?

Applying for a start-up grant requires careful preparation and several appendices. You must append an business plan that describes your business idea, your capabilities for becoming an entrepreneur, and the measures you have planned for starting up your business operations. In addition, you must append a calculation that itemises the costs of starting the business and proves that the business will become profitable in future. You must also append your CV, documents on the funding required, a tax debt certificate, and any lease agreements and other important documents related to your business. For certain lines of business, you may have to append proof of any qualifications required for starting your planned business.

Because the start-up grant is a need-based grant, an authority will always make the final decision after examining your situation and the viability of your business plan.

Need help with applying for a start-up grant?

Business Helsinki is here to help if you are considering starting your own business and need support with applying for a start-up grant. We hold Starting a Business Info events in Finnish, Swedish, English, Estonian, Russian and Arabic. These 90-minute training sessions have a dedicated section on applying for a start-up grant. See our event schedule for the date of the next info session in your chosen language and register for the event.

The Guide to Entrepreneurship/Guide to Becoming an Entrepreneur in Finland has information on setting up a business in Finland and applying for a start-up grant. Download the free guide from our Material Bank.

We also provide free, personal business advisory services in several languages to support new businesses. In the advisory service, we review your business plan and other matters vital for setting up a business that you also need for applying for a start-up grant. Read more about the personal advisory service and book an appointment here.