Startup: What financial support available for young entrepreneurs in France?
Self-employment is one of the solutions proposed to fight against unemployment. However, starting a business is not easy. Banks hardly lend to startups because of the uncertainty of startup development. Hopefully, help is available from both public and private organizations to encourage young entrepreneurs and support the growth of French startups. Financial support can take different forms. It can be a financial contribution, a contribution in kind, or a tax exemption over a given period. In this article, we will present some of these examples.
The first one is the participative seed loan granted by the Public Investment Bank (BPI France). It is aimed at companies under five years of existence and is reimbursed in 8 years. This loan makes it possible to finance current expenses related to innovation (working capital, and research & development). The loan amount varies from 50,000 Euro to 100,000 Euro and can go up to 300,000 Euro in the case of a support of the regional council.
For startups and SMEs operating in the field of technological innovation, BPI France provides the Innovation Development Aid. This support finances any research, development, and innovation (RDI) project, whether collaborative or not, aimed at developing innovative products, processes or services and presenting concrete industrialization and commercialization prospects. The aid may cover the realization and development of prototypes, pre-series, pilot or demonstration facilities, intellectual property expenses. Its amount varies from 25 to 65% of the amount of expenditure.
There is also aid granted by the Regions of France to support the regional economic fabric. Each region has its own support system for the creation or development of companies. To get to know them better, we need to get closer to the regional council of the operating region of the company.
Private Financial Contribution
At the level of private aid, there is also crowdfunding. In the first hours of the life of a company, crowdfunding is one of the most impressive private alternatives because it allows companies to rely on private small or large investors to obtain either loans or donations and all at a lower cost.
This list is not exhaustive, and several other options exist, provided that SMEs and startups manage to meet the eligibility criteria.
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