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Business Coaching – State Subsidies  

Many self-employed persons or companies operate so intensively that strategic planning often comes up short. In such a situation many businesses rely on external consultants who can be partially financed with state subsidies. This article will explore the general prerequisites and amounts of subsidies. The two funding institutions, BAFA and KfW, have reorganized state funding as of July 2008.

1. Federal Office for Economy and Export Control (BAFA)

2. Kreditanstalt für Wiederaufbau


1. Federal Office for Economy and Export Control

The Federal Office for Economy and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle grants subsidies upon application done by accredited consultants. The measure is financed by the European Social Fund (ESF) of the European Union funding.

Object of Funding

General consultations and special advisory services to technology and innovation, foreign trade, quality management, cooperation, and employee participation in preparation of a rating.

In addition, consultations for environmental and occupational safety and health, women entrepreneurs or migrants for entrepreneurial management and assistance to reconcile work and family life are to be promoted.

Eligible Persons

Existing small and medium-sized companies in the industrial sector and members of professional service providers or freelancers having a turnover below € 50 million or balance sheet total below € 43 million and also the number of employees is less than 250.

Type and Amount of Funding

Subsidies are for the fees of certified business consultants. The maximum subsidy in the old federal states (= former West Germany or FRG) is 50% of the consultant's fees and a maximum of  € 1,500 in the new federal states (= former East Germany or GDR), for 75% of the fees and a maximum of € 1,500. Every company has a consulting quota for general advice and specific advice of a total of € 3,000 each under the term of the guidelines. N.B. VAT will never be subsidized as this is not considered as an expense – more as an advance to your VAT bill. More to this topic, see also the Value Added Tax section of this presentation.

General and specific discussions will also, together with grants of up to € 6,000. This restriction does not apply to consultations on environmental and labor safety and health, for women entrepreneurs, or foreigners on entrepreneurial management and to reconcile work and family life. The funding is available under the restraints of the budget.

Deadline / Application

Grant applications can only be submitted to the branches via your business consultant. You only have time to apply within 3 months after end of consultation and payment of the consultant's fees.

2. Founder Coaching via Kreditanstalt für Wiederaufbau

What is the founder coaching about?

Most founders and young companies need expert advice, that their firms really flourish. Coaching has proven to be successful. A qualified business consultant supervises and accompanies the young company. Coaching is supported by a grant from the European Social Fund.

Who is eligible for subsidized coaching?

Founders and young companies that are existing for less than six years. Consultation prior to founding cannot be supported.

How high is the subsidy?

The maximum eligible daily fee is € 800 net (= without VAT). A day's consultation lasts 8 hours. Overall, a maximum of € 6,000 will be sponsored. Based on these eligible costs, companies receive the following subsidies:

  • 75% in the new federal states (fromer East Germany or GDR),
  • 50% in the old federal states (former West Germany or FRG), including Berlin,
  • 75% in the "phasing out" regions Halle, Leipzig, south-west Brandenburg and the governmental district of Lüneburg.

Published on the old CMS: 2007/12/5
Read on the old CMS till November 2008: 1,358 reads