Incentives for Start-ups

TECHNOLOGIEGRÜNDERSTIPENDIUM [TECHNOLOGY FOUNDER GRANT] (ESF)

This funding is designed to support start ups of young and innovative enterprises in future-oriented technological sectors by awarding personal grants.

Towards this end, any eligible start up project must involve at least one of the following aspects:

  • Technical product or process innovation which is to be implemented in house in the respective company (including production, marketing / sales)
  • Novel and innovative services creating substantial benefits for customers and distinct unique selling propositions on the market

Eligible to file an application are students, university graduates, and graduates from universities of cooperative education; practicing or former scientific staff members wishing to found an innovative enterprise; as well as founder teams under certain conditions. The primary or secondary residence must be located in the Federal State of Saxony.

Detailed information (German)

GRÜNDUNGSBERATUNG KMU [START UP CONSULTATION FOR SME]

The “Gründungsberatung” start up consultation program is geared towards the founding of competitive SMEs with the objective of becoming a fully operational, economically viable enterprise. The Federal State of Saxony grants subsidies for the use of consultation services in order to make it easier for business founders to become self-employed.

In particular, SMEs can get advice and assistance on the following topics:

  • Securing and optimizing their financing
  • Preparing a sales and/or marketing concept
  • Reviewing / further developing the start up and/or business plan
  • Entering and developing markets
  • Finding the right location for business setups
  • Defining operative corporate objectives / strategies
  • Developing human resource concepts / measures for expanding the workforce

The funding does not include the creation of start up and business plans and the rendering of consultation services which primarily revolve around legal, insurance, patent, and tax related issues.

Detailed information (German)

MICROLOANS FOR BUSINESS FOUNDERS AND YOUNG ENTREPRENEURS (ESF)

With microloans, business founders wishing to become self-employed receive start up financing for their investments and production equipment and facilities. For these purposes, business founders before they start their business operations as well as young enterprises up to five years after they started their business may apply for a low interest loan amounting to a maximum of 20,000 euros directly at Saxony’s Development Bank (SAB). A mandatory prerequisite for any such project is that the borrower of the loan has to make a co payment of at least 20 % of the total costs.

The repayment has a maximum period of 6 years; the redemption phase shall commence by no later than the second year after the loan has been disbursed.

Those loan borrowers who implement their measure in the Chemnitz and Dresden regions will receive their funding from the European Social Fund and from the Federal State of Saxony.

Detailed information (German)

BETRIEBSBERATUNG / COACHING – “MITTELSTANDSRICHTLINIE” - [BUSINESS CONSULTATION / COACHING - “MITTELSTANDSRICHTLINIE” DIRECTIVE ON FINANCIAL AID FOR SME]

The “Business Consultation / Coaching” program is the core component of Saxony’s consultation funding for SMEs. Thanks to the financial support, SMEs will benefit from the professional expertise of competent consultants in virtually all entrepreneurial issues and get the necessary help so that they can help themselves.

Counseling services may be provided, for example, on the following topics:

  • Corporate management, particularly with regard to operational, financial, human resource, technical, and organizational issues
  • Development of foreign markets insofar as these services are above and beyond the standard services provided by the Saxony Chambers of Industry and Commerce, the Saxony Chambers of Crafts, and the Saxony Economic Development Corporation (WFS)

Detailed informationen (German)

“INNOVATIONSPRÄMIE” [INNOVATION GRANT] (ERDF)

The “Innovationsprämie” [Innovation Grant] is designed to prepare particularly small companies and craft enterprises for cooperations with scientists. In addition, universities and research institutions are to apply their technological knowledge in Saxony even better than before.

Such “Innovationsprämie” innovation grants foster the utilization of external R&D services in conjunction with the development of new or the improvement of existing products, processes, and services as well as the requisite technical support during the implementation phase.

Detailed information (German)

MBG - MITTELSTÄNDISCHE BETEILIGUNGSGESELLSCHAFT SACHSEN MBH [SAXONY’S INVESTMENT BANK FOR SMALL AND MEDIUM SIZED ENTERPRISES - MBG]

The Mittelständische Beteiligungsgesellschaft Sachsen mbH (MBG) [Saxony’s Investment Bank for Small and Medium Sized Enterprises (MBG)] is a privately owned and publicly funded equity company. The MBG supports the financing of commercial business start-ups of all branches with investments. In close cooperation with the appropriate chambers and house banks, it accompanies projects all the way to their implementation and even beyond that phase.

   

Detailed information (German)

GUW - GRÜNDUNGS- UND WACHSTUMSFINANZIERUNG [GUW START-UP AND GROWTH FINANCING] AS WELL AS LIQUIDITY SUPPORT MEASURES

Supported by the Federal State of Saxony, business founders are not only able to become freelancers or to establish a small and medium sized enterprise (SME), but to also compete successfully on the market, and to expand and grow with the help of such funding. Towards that end, loans for investments, production equipment and facilities as well as liquidity support can each be granted up to an amount of 2.5 million euros per loan. These loans are refinanced on the basis of the “ERP-Gründerkredit – Universell” [ERP Business Founder Loan – Universal] and “KfW-Unternehmerkredit” [KfW Entrepreneurial Loan] programs and additionally reduced with the help of the Federal State of Saxony.

Detailed information (German)

INVESTITIONSZUSCHUSS GRW – GEMEINSCHAFTSAUFGABE “VERBESSERUNG DER REGIONALEN WIRTSCHAFTSSTRUKTUR” [GRW INVESTMENT GRANT – JOINT TASK “IMPROVING REGIONAL ECONOMIC STRUCTURES”]

The Joint Task “Improving Regional Economic Structures” (GRW) is the key instrument of the German federal states for supporting investments in structurally weak regions.

Germany’s Federal Government and the federal states jointly support projects of commercial enterprises (including tourism) which contribute towards a well balanced infrastructure. The subsidies are designed as incentives for investments into the creation of permanent jobs and the support of innovations – to the benefit of the income of the people in these regions.

Detailed information (German)

MARKTEINFÜHRUNG INNOVATIVER PRODUKTE UND PRODUKTDESIGN (MEP) – MARKTEINFÜHRUNGSPHASE – MITTELSTANDSRICHTLINIE [MARKET LAUNCH OF INNOVATIVE PRODUCTS AND PRODUCT DESIGNS (MEP) – MARKET LAUNCH PHASE – “MITTELSTANDSRICHTLINIE” DIRECTIVE ON FINANCIAL AID FOR SME'S]

Projects involving the market launch of new or advanced products, services, or processes which have not yet been introduced to the market and which are based on innovations are subsidized during their market launch phase.

SMEs will get the requisite support specifically for the following measures:

  • Product design as well as supporting design services
  • Production of a marketable mass production sample or a zero production series insofar as these items are not earmarked for sale
  • Measures designed to directly prepare the market launch, such as standardizations and certifications
  • Development of a product-related sales / marketing concept, implementation of market surveys and acceptance tests
  • Creation of product-specific advertising materials

Detailed information (German)

ADDITIONAL SUBSIDIES FOR BUSINESS FOUNDERS

In addition to the above mentioned subsidy programs, which are managed by Saxony’s Development Bank (SAB), business founders can choose from a number of supplementary support measures provided by the Federal Employment Agency (BA) / Job Center, the Federal Office of Economics and Export Control (BAFA), the KfW Group of Banks, or the Federal Ministry for Economic Affairs and Energy (BMWi)’s EXIST programs.

More information on starting a business in Saxony is available at the Sächsisches ExistenzgründerNetzwerk (SEN) – a network of Saxony’s business founders initiated by the Saxony Chambers of Industry and Commerce and the Saxony Chambers of Crafts.

ASSISTANCE IN DEVELOPING MARKETS

In order to strengthen the global competitiveness of Saxony’s companies and to safeguard and assure job security in Saxony, the Federal State of Saxony offers a large number of support options.

In order to promote the activities of Saxony’s companies abroad, the Federal State of Saxony subsidizes primarily consultation measures as well as participations at international trade shows and symposiums.

Learn more

START UP EXPERTS ADVISE SAXONY’S YOUNG ENTREPRENEURS

The support of business start ups at Saxony’s universities is very practice-oriented. For example, there are a lot of competitions for business start ups and ideas. Already for more than 10 years now, one such successful example has been the futureSAX ideas contest.

Superb counseling services provided by diverse founder networks help scientists and young entrepreneurs start into business – that’s why Saxony has the highest number of business ideas that end up in the founding of new companies.

Such start up initiatives as SAXEED in Chemnitz, Freiberg, Mittweida, and Zwickau, dresden | exists, or the Self Management Initiative SMILE in Leipzig are all subsidized by the Federal State of Saxony. These programs assist and promote students and junior researchers in transferring their scientific findings into innovations and new jobs.

The HighTech Startbahn Network supports spin offs from Saxony and Central Germany of the high tech sector, above all, the sectors ICT, micro and nano technologies, vehicle and machine construction as well as energy, environmental, and medical technology primarily during the post founding phase – which is often the most difficult phase. That’s why the start up experts bring together young start ups with industry, capital, and personalities and actively seek cooperations with national and international transfer partners.

Technology transfer and business start ups are also in the focus of research and instruction at the HHL Leipzig Graduate School of Management. Germany’s oldest university focusing on business administration is one of the leading business schools in Europe today. In the Gründerradar, a start up survey conducted under the auspices of the Stifterverband, a donors' association for the promotion of sciences and humanities in Germany, and the German Federal Ministry for Economic Affairs (BMWi), the HHL ranked first place as Germany’s best “small-sized” founder academy in both 2013 and 2014. During the past 17 years, HHL graduates have founded more than 150 start ups and created over 2,500 new jobs, more than 1,000 of which are located in Leipzig.

Innenansicht, BIOCITY LEIPZIG

Source: BIOCITY LEIPZIG

Successful Incubators for Start-Ups

The fact that business and science work so closely together makes a vital contribution to successful business start ups is aptly demonstrated by the innovation incubators BIO CITY LEIPZIG and BioInnovationCenter Dresden. Within the immediate vicinity of research institutes and university hospitals, numerous start ups have set up their business in Germany’s most modern centers for biotechnology and biomedicine. Here, they strive to turn their pioneering spirit and entrepreneurship into economic prosperity while working in individual lab and office facilities located right next to renowned research institutions.

Ideal prerequisites for dynamic start ups in the microsystems technology sector are provided by the Smart Systems Campus Chemnitz. – A technology park encompassing almost 4.5 hectares, located right next to Chemnitz University of Technology as well as to the Fraunhofer Institutes for Electronic Nano Systems (ENAS) and for Machine Tools and Forming Technology (IWU). It provides start ups with easy access to research institutes and globally active companies which are among the market leaders of their respective branches.

In order to attract even more business founders to Saxony, the university has launched the SpinLab Leipzig together with the Leipziger Baumwollspinnerei, a former industrial property which used to be a cotton spinning mill and now houses primarily creative minds. Interdisciplinary teams can develop business ideas and concepts further, be coached by experts, and establish contacts to investors in the HHL Accelerator. Towards this end, they can use the rooms and technical infrastructure free of charge for six months. The first teams who have commenced with their work in the incubator in February come from Munich, Rostock, Leipzig, and even from Israel. With its SpinLab, the HHL seeks to make the metropolitan region of Leipzig even more attractive for start ups.

Your Contact Person


Falk Becher
Acquisition, Inward Investment
Phone: +49 (351) 2138-151 Fax: +49 (351) 2138-109

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