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Starting with little Income and little Savings – start small, think big

Easy read — 7 sections

Starting with little Income and little Savings – start small, think big

Start small with little Capital – use Funding

Easy read — 7 sections

Starting with little Income and little Savings – start small, think bigIntroduction

Start small with little Capital – use Funding

According to the [1], over 30% of all self-employed people start with less than €5,000 in equity – many even with no startup capital at all. This shows: Money alone doesn't determine Success. Creativity, networks and funding are often more important than large savings.

April 22, 2026

Contents

1. Starting even without large Capital

Don't let your perceived lack of capital hold you back! Self-employment doesn't have to be a financial risk:

  • Start small: as a side business or as a small trade.
  • Reinvest income early instead of large pre-financing.
  • Use funding and grants specifically designed for founders with little capital.

You rely more on funding, creativity and flexible models instead of making large investments.

2. Funding and Financing Options

There are various ways to get started even without savings:

  • Einstiegsgeld (entry allowance) from the Agentur für Arbeit if you start a business while receiving ALG II [2]. Or the Gründungszuschuss (startup grant) (ALG1)
  • Founder scholarships such as the Gründerstipendium NRW [3] or EXIST for innovative ideas [4].
  • KfW loans for founders with favorable interest rates [5].
  • Mikrokreditfonds Deutschland: Small loans between €1,000 and €25,000 [6].

3. Tax and legal Advantages when starting small

  • Kleinunternehmerregelung (small business exemption) (§ 19 UStG): no need to charge Umsatzsteuer (VAT) if turnover < €25,000 in the first year [7].
  • Grundfreibetrag (basic tax allowance): you only pay Einkommensteuer (income tax) on income above €11,784 per year (2025).
  • Deductibility of Betriebsausgaben (business expenses): laptop, mobile phone, software, home office can be claimed immediately as tax-reducing expenses.

4. Starting "lean": Founding affordably and smartly

In a "Lean StartUp", it's about developing your product idea as "lean" as possible. Continuous testing of the product with customer involvement and using free resources provide the foundation. [8]

  • Use low-barrier digital tools (free accounting, open-source software, social media marketing).
  • Networks such as local startup centers, IHK/HWK or coworking spaces help you get started.
  • Start as a side business – this maintains a base income while the business grows.

5. next Steps for your Journey

StepDescription
1. Check starting positionReview income, expenses, possible funding
2. Use funding opportunitiesEinstiegsgeld, microloans, founder scholarships
3. Create business planStart lean, focus on low fixed costs
4. Clarify legal form & tax statusReview Kleinunternehmerregelung
5. Get started & growRegister trade, use digital tools, leverage network

Steps in Detail

1. Check starting position

  • Analyze your monthly fixed costs.
  • Check whether you are eligible for Einstiegsgeld [9].
  • Plan how much capital you really need for the start.

2. Use funding opportunities

3. Create business plan

  • Define a lean business model.
  • Template & help: [10].

4. Clarify legal form & tax status

  • Check whether the Kleinunternehmerregelung (small business exemption) (§ 19 UStG) is suitable for you [11].
  • Get advice from the IHK [12] or a tax advisor if necessary.

5. Get started & grow

  • Register your trade via the [13].
  • Use digital tools (e.g. free accounting software).
  • Build your network: startup centers, [12], coworking spaces.

Contact Points – Overview

Contact pointOffer
Bundesagentur für Arbeit [14]Einstiegsgeld, AVGS coaching
IHK [12] / HWK [15]Business plan consulting, assessment
EXIST (BMWK) [16]Founder scholarship for innovative ideas
KfW [17]Founder loans, advisory grants
Mikrokreditfonds Deutschland [18]Loans from €1,000–25,000
Gründerstipendium NRW [3]€1,000 monthly for up to 18 months

Sources

  1. [1]KfW-Gründungsmonitor – KfW Gr%C3%BCndungsmonitor
  2. [2]Bundesagentur für Arbeit – Einstiegsgeld Fuer Selbststaendigkeit
  3. [3]Gründerstipendium NRW – Website
  4. [4]Exist.de – Website
  5. [5]KfW Gründerkredit – Website
  6. [6]Mikrokreditfonds.de – Website
  7. [7]IHK München – Kleinunternehmerregelung
  8. [8]Gründerplattform – Lean Startup
  9. [9]Arbeitsagentur – Website
  10. [10]IHK Businessplan-Leitfaden – Businessplan Anleitung 2264218
  11. [11]Bundesfinanzministerium – Website
  12. [12]IHK – Website
  13. [13]Gewerbeamt – Website
  14. [14]Bundesagentur für Arbeit – Website
  15. [15]HWK – Website
  16. [16]EXIST (BMWK) – Website
  17. [17]KfW – Kfw.De
  18. [18]Mikrokreditfonds Deutschland – Mikrokredit

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