Where to look for funding when starting a business

Grants from the employment office

If you are registered as unemployed, you should first check the possibilities offered by your poviat employment office (urząd pracy).

The employment office may award you a grant for setting up your own business. The grant may not be higher than six times the average wage, i.e. approximately PLN 50,000. Such a grant is provided on a one-off basis and can be awarded to:

• unemployed person
• carer of a disabled person, unemployed and seeking a job
• graduate of a social integration centre
• graduate of a social integration club

The application for a grant must include:

• the amount you are applying for
• type of business activity you would like to pursue
• calculation of the costs of setting up your business, and the sources of their financing
• detailed description and purpose of any planned expenses
• proposed form of security for repayment

You will not be awarded a grant if:

• you have already previously received a publicly funded grant for setting up a business
• you are running or have been running a business (entered in the register of business activity) in the last 12 months

Please note! If you have closed your previous business during the COVID-19 epidemic emergency state or epidemic state, as a result of such state, and the subject of your planned business activity is different from the one terminated, the condition of not having carried out business activity for the last 12 months does not apply.

Remember that you must apply for a grant before registering your business.

If you receive a grant for setting up your own business, you must run the business for the next 12 months.

Read more about funding from the employment office.

Find a poviat employment office.

Loans for starting a business

Loans for starting a business are provided by Bank Gospodarstwa Krajowego under the 'Your first business – support for starting up' (Pierwszy biznes – wsparcie w starcie) programme, on very attractive terms.

The loan amount can be up to 20 times the average wage, i.e. more than PLN 150,000. The loan has a low interest rate and is granted without commission or additional fees. Repayment can be spread over 7 years, and the grace period (i.e. suspension of repayment) can be set to 1 year.

Part of the loan (max. 50% of the loan amount and no more than 6 times the average wage) can also be cancelled, provided you have run your business for at least 12 months and are not in arrears with instalment payments.

You can apply for such a loan if you are:

• unemployed
• a jobseeker who is neither employed nor pursuing a gainful activity
• a jobseeker with income not exceeding the average wage
• a job-seeking carer of a disabled person
• a student in their final year of study (first-cycle, second-cycle or uniform Master’s degree)

Additional information can be found on the programme website and from the financial intermediaries to which loan applications are submitted.

EU grants for starting a business

EU funds finance projects where you can receive a grant to start your own business. Such grants are most often aimed at people who are in a difficult situation in terms of the job market or at risk of social exclusion.

The offer in specific projects may vary, depending on the project nature or the individual situation of the person seeking funding.

Most often, such projects offer:

• an individual action plan, prepared in the form of a scheme of steps to be taken in order to improve the person’s situation on the job market
• career counselling on choosing a profession in line with the skills and abilities, and help with career planning
• direct assistance in finding a job – job placement
• high-quality training, courses or post-graduate studies aimed at acquiring qualifications for a given profession or improving existing skills
• traineeships and apprenticeships with employers to gain the necessary work experience, when its lack is an obstacle to finding a job
• grants for setting up a business, as well as counselling and training to acquire the knowledge needed to run own business, and covering social security costs for a certain period

You will find information about projects that are currently being implemented in specific voivodeships in the Grants Finder.

If there is an open call in your region for a project you are interested in, contact the entity implementing the project. You can call, write or go to their premises to check if you can become a participant in this project.

You can also use ask for assistance in finding a specific project from consultants from the European Funds Information Centres.

Setting up a business in the countryside

If you live in a rural area and want to set up a business, ask your local authority about Local Action Groups.

You can also find them in the Local Action Group database.

Some of them offer grants for setting up a business. You can benefit from these if you have lived in a rural area for at least a year, you are not currently running your own business and have not been running your own business in the last 12 months, and you have not previously used funding for setting up a business in a rural area.

You can use the grant for activities that are necessary to set up and run your business, for example the purchase of equipment or facilities. The Local Action Groups often list specific industries (areas of activity) in which business activity can be funded.

Grant amounts usually reach up to PLN 100,000. The application should be submitted to a specific Local Action Group with which the terms of the grant are discussed later on.

Financing for start-ups

Do you have an idea for a new product or service which would meet consumer needs in an original way? Do you lack adequate funds and putting your idea to life involves potentially large profits, but it also comes with a high risk of failure?

If so, your company is a start-up.

A start-up is a young innovative company that has an original idea it wants to market, but operates under a high degree of uncertainty. Start-ups are most often associated with high-tech industries.

There are institutions on the market that are looking for new companies with great potential and are willing to invest in them. These include seed capital funds, venture capital (VC) funds and business angels.

Support for young innovative entrepreneurs is also offered by business environment institutions: technology parks, business incubators, especially those operating as platforms for start-ups. They are financed with EU funds – as part of the European Funds for a Modern Economy (FENG) and European Funds for Eastern Poland (FEPW) programmes.

EU funding

Projects such as Startup Booster Poland, implemented as part of the FENG programme, offer funding for start-up projects. In addition to training and counselling, start-ups can take advantage of mentor support and win a grant of up to PLN 400,000. You can choose from more than a dozen entities that can help you set up and develop your company. The offer for start-ups is expected to grow.

Start-ups from Eastern Poland have the possibility to obtain counselling and non-refundable funding from the FEPW programme. At a very early stage of their development, start-ups can take advantage of start-up platforms that offer free, comprehensive assistance in perfecting their operating model. This is called incubation.

As part of this process, young companies can use offices, legal and accounting services, help with taxes or marketing. They also have contacts with mentors and experts who can advise them on refining their business idea and developing their product or service.

A full list of start-up platforms in Eastern Poland can be found on the website of the Polish Agency for Enterprise Development (PARP).

Private investors

If your business has a lot of innovative potential and you don't have the funds to set it up, you can also look for a private investor.

This is what seed funds, venture capital funds and business angels do. This solution makes it possible to receive not only funds for development, but also professional support and access to markets and business contacts.

Remember that an investor will give you support in return for influence on your business. Often, this involves giving them control of the company, if in exchange for equity contribution they receive a majority of shares or secure the right to have a say in strategic decisions. It is therefore important to develop an investor exit strategy at the very outset – to determine when and under what conditions you can regain control of your business.

Check out the offer of venture capital funds.

Crowdfunding

Yet another option for funding startups is crowdfunding. This involves raising funds online from multiple investors simultaneously, for example via crowdfunding platforms. You can organise such a collection of funds yourself. Its success depends largely on skilful communication, including through social media.

Read more about crowdfunding and the most popular crowdfunding platforms.