Employment Services are now municipal – how are start-up grants affected?

30.1.2025

News

The short answer: not in any way. The employer and business services provided by the state TE offices were transitioned to the municipal Employment Services at the beginning of this year, but from the customer's perspective, the application process for start-up grants remains the same.

– The customer often comes to us at Enterprise Agency Startia first with their business idea and gets advice on how to start a business. Once they have completed their business plan and are ready to roll up their sleeves, they then proceed to apply for start-up grant from the employment authority, says Startia's director Tommi Virkama.

Apply for start-up grant before your business becomes a full-time occupation

– It is still important to remember that you must apply for start-up grant before your business becomes a full-time occupation, says Employment Service Specialist Leila Rönn.

The start-up grant is intended to support the new entrepreneur's livelihood in the early stages of full-time business operations. You must therefore apply for it before your business is established or before you expand your side hustle into a full-time occupation.

Anyone considering full-time entrepreneurship should consider the application and eligibility guidelines for the start-up grant before submitting any business establishment documents. The conditions have not changed, even though the Employment Services have been transferred from state responsibility to municipalities.

The employment authority decides whether to award the start-up grant

The discretionary nature of the start-up grant entails that the employment authority assesses if the entrepreneur's practical skills are sufficient and the conditions for the business are viable. The requirements are not always met.

The intended industry will also be taken into consideration when deciding upon the awarding of the start-up grant.

– The start-up grant is not available for all sectors. For example, if it is considered that the competitive situation of the sector is very challenging in the company’s operating area, the grant is usually not awarded. However, these conditions are not new but have already been applied previously, says Employment Service Specialist Hannu Ollikkala.

As a conclusion: the Employment Services have been transferred to a different organisation, but the procedures for the start-up grant remain unchanged.

Together with the Employment Services in Ostrobothnia, we organise online start-up info events for new entrepreneurs. The following two are on Thursday 27 February, at 30–9.30 in Finnish, and at 15.00–16.00 in Swedish. Events in English are also coming up, so be sure to follow our channels!
Book an appointment with business advisor
Read more about the Employment Services (formerly: TE office)
Apply for start-up grant

Start-up grant in a nutshell

Granted for six months.
Equals to the basic unemployment allowance (€37.21 per day in 2025).
Liable to taxation.
Paid once a month retroactively for a maximum of five days per week against an application for payment submitted by the applicant.
If the applicant has other income not relating to the business or is awarded public subsidies for wage costs, the amount of these is deducted from the start-up grant. (Privileged income under the Unemployment Security Act does not affect this.)