Entry fee & Hartz IV: self-employed or dependent?

The step into self-employment is not just one Alternatives to unemployment, but also the best way to make your own ideas to realize, to develop. The number of start-ups increases, especially in economically turbulent times. The Federal Employment Agency (BA) supports this with advice and various financial aid.

Einstiegsgeld

Jobseekers with basic security also see their own Business start as an opportunity to gain a professional foothold again. Since the beginning of the year, around 12.000 recipients of unemployment benefit II (ALG II) have been supported by the job center in becoming self-employed, starting with the development of the business idea, through support in financing issues to the opening of a business. In 2008 there were around 25.000. The proportion of men between the ages of 30 and 50 is particularly high.

Objective The Federal Agency for is to end the receipt of assistance and the dependence on social benefits in the foreseeable future and, above all, permanently. Self-employment can be a realistic option here. In many basic social security centers, advice and information is provided on the subject of self-employment. The BA has a close network with local chambers, credit institutions, educational institutions and employers' associations. Business start-ups increase, especially in times of crisis. The BA therefore anticipates an increasing need for advice in the coming months.

Successful founders from Hartz IV

The books on the subject (advertising)

That the start-ups of Hartz IV recipients certainly successfully are, shows a look at the statistics. Almost 90 percent of the subsidized self-employed are still on the labor market six months after the subsidy. Only every tenth returns to unemployment after six months. Statistically speaking, at least two new jobs are created within the first two years of every business start-up.

More and more supportive self-employed

But where there is light, there is also shadow. At the end of 2008 there were 114.000 self-employed people with basic security, two years earlier there were 56.000. The number of so-called “top-up self-employed” has almost doubled and the trend is continuing. This shows that more and more self-employed people are using their Income cannot secure the subsistence level. More than half of the self-employed people in need of help have a monthly income of less than 400 euros. Due to a lack of orders or the currently poor economic conditions, they are dependent on additional benefits from the basic security.

The current report on self-employment in SGB II is available in Internet.

Background: This is how financial support for incumbent founders works

Discounts for your success (advertising)!

With the so-called entry-level allowance ALG II recipients can be financially supported. The entry fee is granted for a maximum of 24 months and can be 50 up to a maximum of 100 percent of the standard benefit. What is new is that SGB II can grant additional grants or loans for the integration of self-employed persons.

These can be paid for the procurement of material goods. The grants amount to a maximum of 5.000 euros. A loan may exceed the maximum grant amount. Under certain circumstances, grants and loans can be combined. Material resources can be, for example: operating and office equipment (PC and software, telephone system, copier, furniture, etc.), Marketing and sales-supporting investments (creation of a website, advertising material...), vehicles, machines, tools, etc.

Disputes about Hartz IV: North-South divide

With this bureaucracy monster, however, the federal government shot itself in the leg: The number of cases triggered by Hartz IV lawsuits rose by 2007 percent in the social courts in 38. The Federal Social Court in Kassel had asked all German social courts. 136.000 cases were tried in 2007 and Germany on the topic in question. Together with the cases from social welfare law, there are even 154.000.

Interesting: There is a northeast-southwest gradient. Most cases were in Berlin/Brandenburg, the fewest in Bavaria and Baden-Württemberg. In addition, every third case is before the Federal Social Court, the last instance, in connection with Hartz IV. While the judges in 2005 still had 10 cases decide 2006 cases went into revision in Kassel in 206 and 2007 in 361.

What was the argument

By the way: most of the cases concerned disputes about Costs for accommodation and heating, as well as discrepancies as to whether certain income or Wealth must be taken into account in the unemployment benefit.

Instead of Money to save money, the federal government triggered a veritable wave of lawsuits with the Hartz laws and thus at least created permanent employment for your social judges (warning, irony, I'm just saying it as a precaution). And financially probably shot himself in the foot.

Top books on the subject

Read text as PDF

Acquire this text as a PDF (only for own use without passing it on according to Terms and conditions): Please send us one after purchase eMail with the desired title supportberufebilder.de, we will then send the PDF to you immediately. You can also purchase text series.

4,99€Buy

Advice on success, goal achievement or marketing

You have Ask round to Career, Recruiting, personal development or increasing reach? Our AI consultant will help you for 5 euros a month – free for book buyers. We offer special ones for other topics IT services

5,00€ / per month   Book

Book eCourse on Demand

Up to 30 lessons with 4 learning tasks each + final lesson as a PDF download. Please send us one after purchase eMail with the desired title supportberufebilder.de. Alternatively, we would be happy to put your course together for you or offer you a personal, regular one eMail-Course - all further information!

29,99€Buy

Skate eBook as desired

If our store does not offer you your desired topic: We will be happy to put together a book according to your wishes and deliver it in a format of yours Choice. Please sign us after purchase supportberufebilder.de

79,99€Buy