Salo Employment Services may grant startup grants to those planning to become full-time entrepreneurs. Veli-Matti Leppäniemi of Salo Employment Services explains that spelling mistakes in the application are not a problem, but a lack of personality certainly is.
People starting a business in the Salo employment area, i.e. Salo, Somero, Koski, and Marttila, can apply for a start-up grant. In this article, Veli-Matti Leppäniemi from Salo Employment Services answers the most important questions about the start-up grant.
What is the start-up grant, and what is it for?
The start-up grant is meant to support a new entrepreneur’s personal finances. A newly founded company may not yet have customers, and the business may not bring in income right away. The grant helps cover the entrepreneur’s everyday living costs during this early stage. In other words, it’s meant for the entrepreneur, not the company.
Who can apply for the start-up grant?
Citizens of any country can apply, as long as they hold a valid residence permit in Finland. Finnish language skills are not required. However, applicants must have the right to work that allows full-time entrepreneurship in their chosen field.
Can more than one person apply for the start-up grant with the same application?
No. If a company has more than one owner, each owner can apply for the grant individually, as long as they will work as full-time entrepreneurs in the company. Anyone applying for the grant must submit a personal application.
What types of businesses are eligible for startup funding?
Startup funding may be granted to entrepreneurs engaged in ongoing business activities, regardless of the type of business entity. Eligible business forms include sole proprietorships, general partnerships, limited partnerships, and corporations. Operating solely through a billing service does not qualify you for the grant, but a Business ID (Y-tunnus) is required.
At what stage of starting a business should I apply for a startup grant?
You can apply for a startup grant no earlier than about one month before starting your business, but preferably about two weeks beforehand. That way, once you receive the decision, you have ample time to consider whether you want to become an entrepreneur.
A decision on the start-up grant is possible within just a few days, provided the application is well prepared and all required attachments have been submitted.
Where and how do I submit an application in the Salo–Somero area?
Before submitting a startup grant application, entrepreneurs should consult the advisory services for new entrepreneurs. Experts in each business sector offer guidance and support.
It is recommended to submit the startup grant application electronically, as this allows the applicant to use strong authentication. The application can also be submitted on paper, but this is slower and less reliable. Additionally, if the application is submitted on paper, the payment of the startup grant must also be requested later on paper.
What attachments and other information are required for the application?
The application must include the business plan for the company to be established, financial and profitability projections, and the applicant’s personal tax liability statement.
It is also recommended to include a resume, a work portfolio, any financing agreements, and a lease agreement. This allows the Salo Employment Services to verify the adequacy of funding as well as the applicant’s skills and work history.
How much is the startup allowance, and what does it consist of?
The startup allowance is approximately 800 euros per month, which is equal to the amount of Kela’s general benefit. To receive the startup allowance, you must submit a personal tax adjustment card for the benefit.
How long can I receive startup funding?
Startup funding is granted for six months. You can apply for an extension for another six months.
It’s a good idea to submit the extension application about a month before the end of the first period. The application should disclose whether the business has gotten off the ground in accordance with the business plan and whether the entrepreneur’s livelihood is already secure. To demonstrate this, you must submit a profit and loss statement and, if applicable, a balance sheet as attachments.
What are the most common reasons for rejecting an application?
The most common grounds for rejection are that business operations have already begun before the application is submitted, or that the required attachments are not provided despite a request. Significant tax debt or payment defaults can also prevent approval. Although if the debt is small and a payment plan has been agreed with the creditor, the grant can still be granted.
The grant is also not considered necessary if the applicant’s livelihood is already otherwise secured, or if the business does not appear to be profitable.
An application may also be rejected if the business is not year-round, but rather operates for only a few months. Another ground for rejection may be that the business sector in the area is so competitive that there is deemed to be no room in the market for a new entrepreneur.
What special obligations come with receiving the start-up grant?
During the grant period, entrepreneurs must inform Salo Employment Services of any changes to their business. A small change, such as expanding into a related field, doesn’t require a new decision. In this case an updated business plan is enough.
Paid employment limits eligibility for the grant. Even one working day a week can put the grant at risk, so it’s important to always report this in advance. A personal tax card is also required for payments to be made.
If an applicant’s residence permit is temporarily under renewal during the grant period, this doesn’t automatically stop the grant, as long as the renewal application was submitted in time.
Good to Know About the Start-up Grant!
Leppäniemi reminds applicants that a start-up grant application should reflect the entrepreneur behind it. That’s why it’s best to write it yourself. You can ask a friend for help or use AI when writing the application, but there’s no need to worry about spelling mistakes or poor Finnish.
“If, on the other hand, the application is written entirely with AI, it may become apparent that the entrepreneur doesn’t understand their own business. In that case, the decision might be negative,” Leppäniemi warns.
Applications from people who share the same company are usually processed together, so the business can get started as smoothly as possible. Salo Employment Services offers help and support with everything related to the application process.
“A follow-up application may be rejected if the business has gotten off to a good start and the entrepreneur’s livelihood is already secure without the startup grant. However, in such cases any support previously paid doesn’t need to be returned.”
