The French government has set up several support schemes for business creation that can benefit project owners. During the process of starting a business, several aspects come into consideration, including the financial one. Indeed, once your business idea is found, your market research done, the next challenge is the mobilization of start-up capital. Several options are available to you. This may be your personal contributions, or a bank loan. But, there is also a device to help start a business. What is it exactly? How to get help with starting a business? Discover the answers to these questions in the rest of this article. See http://elevagemettey.com for further editorial
Business Creation Assistance: What is it?
When carrying an idea of starting a business, the last step is to find the necessary funds to start your business. At this level, many are looking for public or private assistance, grants, support to start their project. There are indeed means set up by the state or local authorities, to assist you in this step.
1- Definition of the help for the creation of a company
The aid to business creation is, as its name suggests, a system put in place by the State on the one hand and local authorities on the other, in order to support entrepreneurs. The aid thus proposed can take many forms. This may include financial aid, tax relief, exemption from social security contributions, assistance to the council, the provision of premises, etc.
2- Help to start a business: How it works
To benefit from business start-up assistance, you must first inquire about the conditions for their allocation. This will save you from unnecessarily creating a file. It is important to note that these aids are not necessarily closely related to your business idea. Indeed, they are either attached to particular sectors of activity, or to the geographical place. They may also be based on your current status (unemployed or salaried) or require that you make significant investments or recruitments.
In addition, there are also private initiatives created to help entrepreneurs to finance their project. These aids are then allocated by associations, foundations, clubs, large companies, etc. While some of these aids are for everyone, others require a specific type of project. In this case, the conditions for obtaining are strict.
3- The various business creation aids in France
There are many help to start a business in France. This assistance intervenes in the social, fiscal, financial and support fields. This is to allow the entrepreneur to build capital.
Aid for the creation of a company by the State
There are several state aids to start a business. Among these, we can mention inter alia ACCRE, NACRE and BPI France devices.
This is the Aid to the Unemployed Creating or Resuming a Business. This support for the creation of a company allows a partial exemption of the social charges as well as a support during the first years of its operation. It is aimed at the unemployed and people who take over a business.
To benefit from this help to start a business, you must meet several conditions:
- Be a jobseeker who is the beneficiary of the unemployment insurance allowance (AER) or the occupational security allowance (SPA) or the RSA or the special solidarity allowance (ASS) or the temporary Waiting (ATA).
- An unpaid claimant has been on the jobseeker list for more than 6 months.
- Be aged 18 to 25 or under 30 if you are a disabled person.
- Employed or dismissed from a company in receivership or liquidation. You are also eligible if you take over all or part of this company.
- Unemployed and holder of a Project Support Contract (CAPE).
- Creator or creator of a company in a Priority Neighborhood of the City Policy (QPPV).
- Beneficiaries of the complementary free choice of activity.
This scheme to help start a business is accompanied by an exemption from social security contributions, sickness, maternity, invalidity, death, basic old age, family allowances, etc. On the other hand, if you are in a salaried system, the exemption only concerns employee and employer contributions. The exemption proposed by this business start-up aid applies only to annual income or remuneration of less than or equal to € 21,119. Which corresponds to 120% of Smic.
It applies for 1 year from the beginning of activity of your company, if you are an employee. Otherwise, it takes effect from the effective date of your affiliation.
New Accompaniment for the Creation or the Business Recovery. It is an aid provided by a state-sponsored accompaniment agency. It may be an organization to help start a business, an association, a CCI, etc. Generally, people eligible for ACCRE can also benefit from NACRE.
The NACRE business creation assistance is divided into three phases:
- The editing of the project.
- Financing assistance, in particular by obtaining a zero interest loan.
- Support for the development of the company that can be requested during the 3 years following the creation.
The BPI France devices
The Public Investment Bank is a French organization that works for the financing and development of companies. This business creation assistance offers guarantees so that you can convince your bank to grant you a loan. Business Creation Assistance BPI France subsidizes expenses related to the creation of your company. Supported steps are feasibility studies, market research, partner research, etc. You can get up to 30,000 euros in contributions.
Business creation assistance offered by Pôle emploi
Pôle emploi is a public administrative institution. He is responsible for employment in France. This establishment offers 2 helpers in particular: ARE and ARCE.
AER is a return to work assistance allowance. This is a business creation aid granted by Pôle emploi. Its goal is to replace the wages of people who have lost their jobs involuntarily. According to your last contract of employment, several characteristics are applied:
- Have worked and contributed for a number of well-defined days in one or more companies.
- For persons over the age of 50, they must have worked and contributed for at least 610 hours (122 days) in the last 3 years prior to the end of the employment contract.
When you decide to start your business, Pôle emploi can maintain your benefits. This on the condition that your current salary is zero or low as a leader of your company. The AER encourages entrepreneurship for people who want to find a job.
In the event that you no longer collect the AREs, and you receive the Active Solidarity Income (RSA), you have the option to maintain the latter when creating your business.
This is the Help for Recovery or Business Creation. Pôle emploi has this help of business creation so that your unemployment benefits will be a capital. The ARCE allows the entrepreneur (the business buyer) to build a capital. By obtaining the ARCE, Pôle emploi pays you the equivalent of 45% of your allowances. The AER entitles you to the ARCE, however, they are not cumulative. In addition, you must be a beneficiary of the ACCRE to apply for the ARCE.
How to get help for business creation
To qualify for business start-up support, you must meet a number of criteria. These are based on the organization and the type of help you request.
1- Who to turn to for help in starting a business
No matter what kind of activity you plan to create, it’s important that you get framed. To this end, there are specialized networks that are available to inform you, guide you and accompany you. For this purpose, you can get closer:
- From a public device : regional or European for example.
- CPA (Personal Activity Account), which is mobilized in support of business creation. You benefit from training, support and advice throughout your process.
Depending on your project and your activity, you can request:
- Chamber of Commerce and Industry, for commercial or industrial activities.
- For a craft activity, the chamber of trades and crafts.
- The chamber of agriculture, a Civam, or the network Young Farmers, in the case of an agricultural activity.
Depending on your profile, young, salaried, job seeker, etc., there are also specialized centers.
2- Steps to get help to start a business
The procedures for obtaining business start-up assistance vary from one aid to another.
Steps to obtain an ACCRE
To obtain ACCRE business start-up assistance, your application must be submitted to the competent Business Forms Center (CFE). This application must be filed within 45 days of the creation or resumption of your business. Your request must contain:
- The declaration form of the company at CFE or its copy.
- A certificate on the honor of non-profit of this help to the creation of company since 3 years.
- Proof of belonging to one of the categories benefiting from the ACCRE.
You will receive in return a receipt of registration of your request. ACCRE informs social organizations and sends your request to the URSSAF. The latter will inform you of his response in the month.
Conditions for obtaining NACRE
Assistance for the creation of a NACRE company is obtained from an accompaniment organization approved by the State. These are usually business creation or takeover professionals. To find out which support organization to apply for, contact your local management. You must first meet the following conditions:
- Difficulty finding a job.
- Have a viable project economically.
- Lack of sufficient support means.
Steps to obtain BPI France
BPI France has identified priorities in its corporate social responsibility charter. For steps to get support for BPI France business creation, make sure to provide supporting evidence according to their priorities. These include:
- Youth employment.
- Female entrepreneurship.
- Quality of governance and management.
- Ecological and energetic transition.
BPI also promotes Corporate Social Responsibility (CSR) initiatives. When you register on the site, you will have to explain the details of your project in this way.
Another way to finance your business plan
In addition to business creation assistance, there are other ways to finance your business creation project.
1- Find investors in equity
This is about finding people who will invest funds in your project in exchange for shares in your company. In addition to their money, these investors will bring you their expertise and address book. They also make you gain credibility. This type of investment is only possible if you create a company. The disadvantage of this method is that you no longer own 100% of your business.
2- Get a bank loan
You can also apply for a bank loan. For this, you must meet a number of conditions:
- Demonstrate the credibility of your project, this through a very detailed business plan.
- An equity contribution, proving that risks are distributed equitably.
The advantage of this means is that the equity that you incur is less important. But, in return, you will have to pay a monthly rate of repayment of your loan.
3- The Crowdfunding
There are crowdfunding platforms that allow you to collect donations, loans or investment from individuals. It is also called crowdfunding. This means is generally used in addition to other financing tools. It is also an opportunity to build a community that supports you by bringing their expertise, and sharing their client diary.
In short, there are several ways to get financing for your business creation project. Therefore, it is up to you to choose the mode that suits your needs. You also have the opportunity to combine many of these options. You can, indeed, accumulate a help to the creation of company with a bank loan for example.