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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case FI-2020-18/1239 – measures in Finland

Extension to the maximum duration of start-up funding

Starttirahan enimmäiskeston pidennys

Country Finland , applies nationwide
Time period Temporary, 01 May 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
Author Amanda Kinnunen (Oxford Research) and Eurofound
Case created 05 October 2020 (updated 07 October 2020)

Background information

In Finland, individuals who want to establish a company can receive support for it through the public employment services (TE-services). The aim of this support is to provide a secure income for the entrepreneur while they get the business up and running.

Due to the COVID-19 pandemic and its impact on the market, it may take more time for new entrepreneurs to establish themselves in the market and for the business to become profitable. Therefore, the Government proposed a temporary amendment to the Unemployment Security Act (1290/2002) (in Finnish ‘Työttömyysturvalaki’). This amendment extended the maximum duration of the start-up grant from 12 months to 18 months. This amendment was approved by the Parliament in April 2020 and it entered in force 1 May 2020.

The total budget for start-up fund and pay subsidy (another permanent support measure administrated by TE-services) is approximately €200 million in 2020. There is no information available regarding the total budget for the start-up fund only. This includes the estimated cost for the extension of the start-up fund which is €4.5 million.

Content of measure

The public employment service TE-services may give the start-up grant for start-ups that meet the following requirements:

  • the business has potential for continued profitable operation;
  • the start-up grant is necessary; and
  • the business started only after the grant has been awarded.

Unemployed jobseekers, part-time entrepreneurs and individuals who are shifting from paid employment, studies or domestic work towards full-time entrepreneurship may apply for this grant. Only individuals with adequate capabilities for the intended business may be given the grant.

The start-up grant is €33,66 per weekday.

The extended start-up grant is available only for entrepreneurs whose prerequisites for establishing business activities are hindered by the COVID-19 pandemic.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Start-ups
Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

No information available.

Views and reactions

No information available.

Sources

  • 24 April 2020: Government proposal to Parliament to temporarily amend Chapters 2 and 8 of the Public Employment and Business Services Act and Chapter 13, Section 13 and Chapter 11 of the Unemployment Security Act (finlex.fi)
  • 30 June 2020: A startup grant supports a new entrepreneur (www.te-palvelut.fi)

Citation

Eurofound (2020), Extension to the maximum duration of start-up funding, case FI-2020-18/1239 (measures in Finland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.