Capital to start a business - how to get the right funds?
Having an idea for your own business, you always need capital to start a business. This is a big challenge, but it doesn't have to be just an unfulfilled dream. Our intellectual capital - equally important - can only help us in searching for financial sources. There are many possibilities.
Capital to start - Program of the Ministry of Labor and Social Policy
The Ministry of Labor and Social Policy has established the government program "First Business - Support in the Start". The funds for its implementation come from the Labor Fund, pursuant to the Act on Employment Promotion and Labor Market Institutions, amended in 2014.
This program aims to:
creating new jobs,
It consists in granting loans to the interested parties to start a business. The loan is secured with a promissory note and a surety of a natural person. The loan repayment period is 7 years, while the grace period for principal repayment is up to one year.
Capital to start - subsidies from the European Union
We distinguish 5 main EU funds - they support the economic development of all EU countries in line with the goals of the Europe 2020 strategy. They are:
- European Regional Development Fund - its aim is to reduce the disparities in the level of development of regions in the Union and to strengthen the economic, social and territorial cohesion of the EU as a whole. The fund comes from, among others support for production and infrastructure investments and support for small and medium-sized enterprises.
- European Social Fund - the main goal of the fund is to fight unemployment in the Member States. Money from the European Social Fund increases employment and training opportunities. Its resources co-finance assistance for various regions and social groups, in particular for people at risk of poverty and for young people entering the labor market.
- Cohesion Fund - This fund is intended for Member States whose per capita gross national income (GNI) is less than 90% of the EU average. Its aim is to reduce economic and social disparities and to promote sustainable development mainly through large investments in the field of transport infrastructure and environmental protection.
- European Agricultural Fund for Rural Development - this fund supports the transformation of the agricultural structure and the development of rural areas.
- European Maritime and Fisheries Fund - the fund supports the restructuring of the fisheries of the Member States.
The most important goal of EU programs is to improve the standard of living of the inhabitants thanks to economic growth and employment growth
Capital to start - subsidies from the employment office
Grants from the employment office are one-time non-returnable funds for starting a business, addressed to unemployed people registered in the Poviat Labor Office.
When can an unemployed person apply for such support? The unemployed person must submit an application for capital with the required documents. Then, an analysis of the situation and opportunities in the labor market is made. After receiving the subsidy, the person is required to set up a business and use the received funds in accordance with the application.
Capital to start with business angels
This name covers natural persons or entrepreneurs who want to invest in projects at the very beginning of their development. They offer their own capital and experience to projects that seem to be a good investment and have good prospects for the future. In return, they expect shares in the venture.
An innovative idea plays an important role here, as well as the company's team, which will perform its duties well, which will allow for a return on investment. The business angel must be sure that the company he wants to invest in is truly developmental and has high hopes. Usually, he chooses companies from his own industry or one that he knows and has been successful in himself. If someone has an interesting idea, they have a chance to be taken care of by a business angel.
The JEREMIE initiative as a starting capital
It is a regional program financed by the European Union, offering loans for new companies. Its aim is to support local economic activity and increase its competitiveness on the world market. The initiative supports micro, small, medium and start-up companies by granting them low-interest loans, which often have a longer repayment period. The loan is granted for investment or investment and working purposes. A very big advantage of JEREMIE is its flexibility.
Above are the possibilities that give you the chance to raise capital to start a business. As you can see, there are quite a few of them. There are certainly other ways to raise capital to finance your business, but these are some of the most popular and affordable.