The End of Ineffective Self-Employment Subsidies?
As many as 23,316 individuals received subsidies of EUR 2,100 to EUR 5,000 to launch their own businesses over the past six years. Even though the programme was very successful, it will not continue in the same form.
A survey carried out among the recipients showed that 56% decided to participate in the programme because of a business opportunity, while 44% did it out of necessity.
Still, the share of refunded subsidies was only 2%, the Employment Service explained. A proportionate part of the funds had to be paid back if the recipients did not remain self-employed for the time stipulated in the contract.
85% of sole proprietors remained self-employed during two years, while 94% kept their job for a year.
"Certainly, the programme positively affected the labour market, because it enabled the unemployed and those whose jobs were threatened to start new careers," the Employment Office stressed.
However, the ZSSS trade union confederation does not share the same opinion.
The degree of poverty among the self-employed (excluding farmers) has risen significantly, from 16.3% in 2007 to 23.8% in 2012, they said.
They pointed out to the expansion of "pretend sole proprietors", who are advised to launch their own businesses by their current employers, even if their work has all the characteristics of an employment relationship.