4 - Establishing a financial foundation

Every promising start-up in North Rhine-Westphalia should be able to find the necessary initial capital.

Where we are now

Reliable finance is an essential requirement for a successful start-up. According to the NRW Start-up Monitor, 81.9 per cent of people starting their own business in North Rhine-Westphalia rely on their own savings; 27.3 per cent borrow from friends and family (see graphic). Compared to the nation as a whole, budding entrepreneurs in North Rhine-Westphalia find it more difficult to access state funding. The new Gründerstipendium NRW start-up grant should close this gap.

Sources of finance for business founders
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Where we want to be

Every promising start-up in North Rhine-Westphalia should be able to find the necessary initial capital.

What we are doing

  • The Gründerstipendium NRW has been supporting start-up businesses in their initial phases since 2018. 1,000 business founders receive a monthly payment of 1000 euros over a period of one full year. This financial support is complemented by coaching and a professional network of partners. The grant also ensures that any start-ups that previously failed get a second chance. It can be combined, without any restriction, with many other sponsorships available in the state of North Rhine-Westphalia.

  • We support craft business start-ups with the Meistergründungsprämie (master craftswoman/craftsman start-up bonus). A grant of 7500 euros (as at August 2020) is guaranteed for craftsmen and women who put in at least 50 per cent of their own funds to cover the expenses of starting their own business, acquiring a business or purchasing a share in a business, thereby creating a workplace within one year.

  • The financial support division of the NRW.BANK provides free-of-charge advice on public funding and financial packages available nationwide or in the state of North Rhine-Westphalia. The NRW.BANK offers its own financial products specifically for people starting their own businesses, from NRW micro-loans for smaller projects to NRW.BANK start-up loans for larger investments.

  • Business founders who are unable to provide sufficient security for bank loans can take advantage of the service offered by the guarantor bank, Bürgschaftsbank NRW, which will undertake to cover up to 80 per cent of the amount of the loan.