Youth entrepreneurship can be a way to fight against precariousness in this area. The 2021-2022 GEM Report shows that only 5.9% of young people between the ages of 18 and 24 dare to set up their business. The lack of motivation, time and money are the main difficulties that young people encounter when establishing their business, however, there are a series of aids that will help promote this type of entrepreneurship.
Among the aids to promote youth entrepreneurship, the zero quota for the new self-employed stands out. It is, as they remember from Think Big, a measure that autonomous communities such as Madrid, Murcia and Andalusia have implemented. These three communities have announced the total rebate of Social Security contributions for those professionals who start their activity in 2023. The measure will last two years, but among the requirements to be met is not reaching the Minimum Interprofessional Wage.
Reduced rate
On the other hand, the so-called reduced rate of contributions to be paid to Social Security is in force. This is aid for new entrepreneurs, who will be able to benefit from an 80% reduction in the Social Security contribution quota during their first year. In addition to that, they will be able to obtain a discount of 60% of the fees during the first six months of the second year and 30% during the remaining six months.
The Official Credit Institute (ICO) has launched aid to finance investment projects and business activities that need liquidity.
Women entrepreneurs will also have microcredits without guarantees of up to 25,000 euros through the Business Support Program for Women, of the Spanish Chamber of Commerce.
Finally, there is also aid from Neotec from the CDTI to create and consolidate technology companies in Spain.
In addition to that, it must be taken into account that the Social Security fee must be paid monthly, in addition to agency expenses, commercial registration, the rent of the premises and the taxes that must be paid for carrying out the activity.