People receiving Bürgergeld (basic income support) in Germany – including many international residents – can, under certain conditions, start their own business and receive support from the Jobcenter: from Einstiegsgeld to a grant for equipment. In this article we look at the current rules, the application process and common mistakes. The programme for recipients of Arbeitslosengeld I: Gründungszuschuss: how to get the start-up grant with ALG1. A general overview of self-employment: Self-employment in Germany: opportunities, costs and the route to your own company.
Since 1 July 2026, Bürgergeld in Germany has gradually been replaced by a new Grundsicherung system. The name and some procedures are changing, but the legal basis for people who want to start a business while receiving basic income support essentially remains the same. If you are searching specifically for “Bürgergeld and starting a business”, note that the Bundesagentur für Arbeit now publishes its current information under the name Grundsicherung, while the substance of the rules for new business owners has hardly changed.
In short: moving from benefits into self-employment is realistic, but it is not an automatic entitlement – it is a decision the Jobcenter makes individually in each case. This article is an educational overview of the support system, not personal advice: every benefit recipient’s situation is different (household, work history, type of activity), and the final decision always rests with the Jobcenter concerned.
As part of the transition from Bürgergeld to the new Grundsicherung, the obligations to cooperate with the Jobcenter (Mitwirkungspflicht) and the sanctions for missed appointments or breaches of obligations have been tightened, and the priority on job placement (Vermittlungsvorrang) has been strengthened. At the same time, the support instruments for new business owners – Einstiegsgeld under § 16b SGB II and Leistungen zur Eingliederung von Selbständigen under § 16c SGB II – currently remain in their previous legal form. Because wording and practice are changing along with the reform, check the current conditions directly with your Jobcenter or on the Bundesagentur für Arbeit website.
What Einstiegsgeld is and who is entitled to it
Einstiegsgeld is a monthly supplement that the Jobcenter can grant to a person moving from benefits into self-employment. The legal basis is § 16b SGB II. It is important to understand that this is not a guaranteed payment but an Ermessensleistung – a decision made at the discretion of the individual Jobcenter adviser, even if all the formal conditions are met.
- At the time of application, the person receives Bürgergeld / Grundsicherung
- The planned activity is not yet being carried out as a main occupation
- The self-employment is planned for at least 15 hours per week (as a rule)
- The applicant has the personal and professional prerequisites to succeed in this particular business
- In the Jobcenter adviser’s assessment, there are reasonable prospects that dependence on benefits will be reduced or ended
The final decision on whether these conditions are met is made by the integration specialist (Integrationsfachkraft) at your Jobcenter. The application must be submitted before the business activity starts – Einstiegsgeld is generally not granted retrospectively.
How much is paid and for how long
There is no single fixed amount – it is determined individually, taking into account the household, the length of previous unemployment and the prospects on the job market. As a guide, it amounts to up to about 50 % of the current Regelbedarf (standard rate) for a single recipient – around €280 per month at the current benefit level. In a specific case the amount may be lower and may decrease over the support period.
For comparison: the equivalent programme for recipients of Arbeitslosengeld I – the Gründungszuschuss – was approved in around 20,000 cases in 2024. Einstiegsgeld from the basic income support system is approved considerably less often, so you should take the quality of your business plan and the justification of your application particularly seriously. More details: Gründungszuschuss 2026.
Einstiegsgeld is paid monthly without deductions and does not reduce your ongoing Grundsicherung payments. At the same time, your obligation to inform the Jobcenter of any changes continues while you receive support.
How to apply: step by step
- Book an appointment with your Jobcenter adviser and discuss your idea.
- Gather your documents: CV (Lebenslauf), business plan, capital requirements and financing plan, and a revenue and profitability forecast, usually for three years ahead.
- Attend the consultation – the Jobcenter assesses the concept and may request additional documents.
- Submit the application online via your Bundesagentur für Arbeit account or in writing.
- Wait for the written decision. There is no legal right to approval.
- Provide proof of business registration (Gewerbeanmeldung) once you have received a positive decision.
If the activity starts or the Gewerbe is registered before the application is submitted or before the decision is received, Einstiegsgeld is generally no longer granted. In any case, agree the order and timing with your Jobcenter in advance.
Business plan and viability assessment (Tragfähigkeit)
The central question when assessing an application is whether the future business will, within a reasonable time, generate enough income to live on (this is what is meant by the Tragfähigkeit, or “viability”, of the concept). To assess this, the Jobcenter may request a statement from a qualified body – for example a chamber of commerce or chamber of crafts (IHK/HWK), a tax adviser, a bank or a recognised start-up support centre. Such a statement (Tragfähigkeitsbescheinigung) evaluates the market, competition, pricing and how realistic the revenue plan is.
- A short description of the idea, the target group and how the offer differs from competitors
- A realistic analysis of the market and competitive environment
- A calculation of capital requirements and a financing plan
- Planning of revenue, costs and cash flow for the first three years
- Proof of personal and professional qualifications (experience, education, certificates – including those obtained abroad)
An incomplete or unrealistic plan is one of the most common reasons for rejection. If you have doubts about your own calculations, it is worth seeking free start-up advice through the Jobcenter or from external advisers before you apply – for example as part of start-up coaching.
Other types of support: § 16c SGB II and the Vermittlungsbudget
Besides Einstiegsgeld, SGB II provides other instruments that can be useful when starting a business while receiving basic income support.
| Instrument | Legal basis | What you can receive |
|---|---|---|
| Einstiegsgeld | § 16b SGB II | A monthly supplement at the start of self-employment, for a maximum of 24 months |
| Leistungen zur Eingliederung von Selbständigen (LES) | § 16c SGB II | A loan or non-repayable grant for necessary equipment (grant up to €5,000), as well as advisory support |
| Vermittlungsbudget | § 16 Abs. 1, 3 SGB II in conjunction with § 44 SGB III | Certain costs connected with starting work (for example travel costs); you must apply before the costs are incurred |
The same rule applies to all of these instruments: there is no legal entitlement, the decision rests with the Jobcenter, and applications usually have to be made in advance – before the relevant costs arise.
How income from self-employment is counted
If you already earn income from self-employment while receiving benefits, you must report it to the Jobcenter. However, the income is not counted in full: under § 11b SGB II there are income allowances (Freibeträge) designed to preserve the incentive to earn your own money.
| Gross income | Share not counted |
|---|---|
| up to €100 | 100 % not counted |
| €100.01–520 | an additional 20 % not counted |
| €520.01–1,000 | an additional 30 % not counted |
| €1,000.01–1,200 (or €1,500 with children) | an additional 10 % not counted |
Self-employed people can also deduct a flat 20 % of turnover as business expenses (Betriebsausgaben) without separate receipts; alternatively, the actual necessary expenses can be documented. Because the exact calculation depends on the specific situation, discuss the final figures with the Jobcenter or with an adviser familiar with German tax and social law before putting them into your business plan.
Your duty to inform the Jobcenter: what to watch out for
The start of self-employment, like any significant change in income or assets, must be reported to the Jobcenter immediately. If you fail to do so, possible consequences include a demand to repay amounts already paid, a 10–30 % reduction in benefits depending on the seriousness of the breach and, in some cases, a complete refusal of benefits. Deliberately concealing income may even lead to a criminal complaint for benefit fraud (§ 263 StGB).
The duty to inform the Jobcenter applies regardless of whether you apply for any specific start-up support. So discuss your idea with your adviser early and openly – whether or not you end up applying for Einstiegsgeld.
Einstiegsgeld or Gründungszuschuss: how to tell which one applies to you
If you have recently moved from Arbeitslosengeld I to Bürgergeld/Grundsicherung, or are simply unsure which programme applies in your case, it helps to compare the two main support instruments for starting a business from benefits. A detailed look at the Gründungszuschuss for recipients of Arbeitslosengeld I is in a separate Vitavia article on the Gründungszuschuss. How ALG1 and self-employment fit together in general: ALG1 and starting your own business in Germany.
| Item | Einstiegsgeld | Gründungszuschuss |
|---|---|---|
| Who it is for | Recipients of Bürgergeld / Grundsicherung (SGB II) | Recipients of Arbeitslosengeld I (SGB III) |
| Legal basis | § 16b SGB II | §§ 93 ff. SGB III |
| Guaranteed entitlement | No, at the Jobcenter’s discretion | No, at the Agentur für Arbeit’s discretion |
| Maximum duration | Up to 24 months | Up to 15 months (6 + 9) |
| Who decides | Jobcenter | Agentur für Arbeit |
Common mistakes when starting a business on Bürgergeld
- The activity starts or the Gewerbe is registered before the application is submitted or approved
- The business plan is based on unrealistic revenue forecasts without market analysis
- Income from the first orders is not reported to the Jobcenter in time
- The minimum working-time requirement (usually 15 hours per week or more) is underestimated or not reflected in the plan
- Additional support measures – such as § 16c SGB II or the Vermittlungsbudget – are not explored
- No statement from a qualified body is obtained, although the Jobcenter requires one
Frequently asked questions
Do I have to pay back Einstiegsgeld?
Can I receive Einstiegsgeld and the Gründungszuschuss at the same time?
What happens if the business does not go as planned?
Do the same rules apply to all types of business?
Moving from benefits into self-employment rarely succeeds spontaneously – it succeeds when the concept, the figures and the application have been thought through in advance and fit together.
This article gives a general picture of how support for entrepreneurs from the Bürgergeld/Grundsicherung system works. How exactly these rules apply to your personal situation depends on many individual factors. If you are considering starting a business while receiving Bürgergeld, Vitavia Akademie can help you structure your concept and avoid typical mistakes – for example in a personal consultation or one of our education programmes. The final decision on any state support is always made by your Jobcenter.
Book a consultationLegal notice: This article is for general information and educational purposes only and does not constitute individual legal, tax or financial advice. It does not replace advice from a tax adviser, a lawyer or your Jobcenter. Legislation and administrative practice may change, especially in the course of the reform introducing the new Grundsicherung. Every situation is different: before making important decisions, check the current requirements with the relevant official sources or consult a qualified professional. See also: Impressum and Datenschutz.
Sources
- Bundesagentur für Arbeit: Einstiegsgeld für Selbstständigkeit
- Bundesagentur für Arbeit: Einstiegsgeld für eine Beschäftigung
- Bundesagentur für Arbeit: Existenzgründung mit Hilfe des Jobcenters
- Bundesagentur für Arbeit: Vermittlungsbudget
- Gesetze im Internet (BMJ): § 16b SGB II – Einstiegsgeld and § 16c SGB II
- Gesetze im Internet (BMJ): § 11b SGB II – deductions from income
- Bundesregierung: transition from Bürgergeld to the new Grundsicherung (reform from 1 July 2026)
- Sozialpolitik-aktuell.de: statistics on support for self-employment 2001–2024 (Einstiegsgeld/Gründungszuschuss)
