Easing the risk of starting a company by offering social benefits

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Campus Party (English, German) – according to its own description „the biggest electronic entertainment event in the world“ – will be in Berlin at the end of August. I have no idea if it’s any good, but its main topics are technology and Europe. Since these are two subjects I’m really interested in and there’s a chance to get to the conference for free by presenting an idea, I’ll give it a try. So here’s my proposal:

Ease the risk of starting a company by offering social benefits

Founding a company is not an easy task to do – especially if you’re young (maybe just finished university) and don’t have substantial financial means. At first you won’t make a lot of money and if you fail – which is rather likely – you won’t make any money at all from this endeavor. But since small companies can grow big and are an important part of our society, having a low income should not mean that you don’t profit from certain advantages this society has to offer.

There are other members of our society – for example artists and young parents – that don’t always earn much money but are considered integral for our public and hence receive certain additional benefits. In Germany, artists are supported by the Artists’ Social Security Fund and pay only a reduced premium for their social insurance (pension, health care and nursing care). For parents, the German Federal Pension Fund considers having a baby as good as 3 years of work (German) when calculating your retirement pension.

These are examples of how people are encouraged to give up the security and benefits of a nine-to-five job and instead do what they feel is important for them and important for society. Something similar may be established for young people starting a company – but it better be on a European level and not limited to Germany.

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