Background information

The purpose of this measure is to help unemployed people or those facing dismissals and who are capable of starting a business by providing them with financial support during the start-up phase. The public employment service offers to counsel and advises when starting the business. In some areas, PES also offers informational meetings and education in entrepreneurship.

Content of measure

This instrument is available for people who are registered as unemployed or who are facing dismissal and have an approved business concept by the Swedish public employment service (satisfactory level of profitability and long-term job stability).

Applicants must fulfil the following conditions:

• be over 18 years of age

• unemployed or facing dismissal

• have a business idea that can lead to sufficient income

The support payment is for a maximum of six months and the amount equals the amount as the unemployment benefit. This means that the individual receives reimbursement between SEK 910 (€90) and SEK 365 (€36) a day. Applicants with a disability may receive extra support worth SEK 60,000 (€6,000).

The public employment service offers counseling and informational meetings and advises when starting the business.

Use of measure

A total of 6,667 participants received support for starting/continuing a business programme in 2017. In 2018, this number was 4,863. Foreign-born accounted for 38% of all participants in 2017 and 41% in 2018. The proportion has increased each year. As of 2018, bigger efforts are made towards increasing the level of participants from the group of foreign-born women.  People with disabilities that result in reduced workforce accounted for approximately 13% in 2017. In 2018, this number had increased to 16%. 

Compared with other labour market support programmes in Sweden, this instrument has normally the best outcome in terms of employment figures. In 2017, 81.6 % of those who left the programme was working 180 days later. In 2018, this figure was 80.7%. An examination made by the Swedish National Audit Office in 2012 shows that the support has positive effects on the individual's employment. However, the effect is smaller for immigrants. One reason is said to be the lack of a long-term action plan by the Swedish public employment service after the individual has started his or her business. Long-term action plans are more common among Swedes receiving support for starting a business than for immigrants.

The amount of compensations paid out through the program were SEK 638 million (€56.5 million) in 2021, SEK 334 million (€29.6 million) in 2022, and SEK 126 million (€11.2 million) in 2023. In total 2,644 people were supported via the measure in 2023. In 2022 the number was 5,594 and a year earlier, 7,532.

An evaluation of the measure between 2010-2020 shows strong and positive results throughout the measured period. Participants experience mainly small negative effects on their income in the short run, but they turn positive in the long run. Effects are also positive in turns of transition to unsubsidised work and employment where 100% of participants who continue running their business, move into work after the programme. The share of participants in the program, who have moved on to unsubsidised work 12 months after the program, has remained between 70 and 80 % during all years but 2019, where it fell down to about 65%.

Target groups

Workers	Businesses	Citizens
Unemployed	Solo-self-employed 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: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 12 December 2012: Riksrevisionen (2012), RiR 2012:26, Etablering genom företagande – är statens stöd till företagare effektiva för utrikes födda? (www.riksrevisionen.se)
• 04 May 2018: Arbetsförmedlingen (2018), Arbetsmarknadspolitisk rapport 2017 (arbetsformedlingen.se)
• 21 February 2020: Arbetsförmedligen (2020) , Arbetsförmedlingens återrapportering 2019
• 03 November 2022: Arbetsförmedlingen  (arbetsformedlingen.se)
• 21 February 2024: Arbetsförmedlingen (2023) Årsredovisning (arbetsformedlingen.se)
• 24 September 2024: Försäkringskassan (undated) Aktivitetsstöd eller utvecklings­ersättning när du deltar i Arbets­förmedlingens program (www.forsakringskassan.se)