Starting a Business: When the Grant Suddenly Falls Through

When I applied for the business start-up grant at AMS in Austria, I was full of confidence. I hadn’t done extensive preparation, but it seemed logical to me that this grant was made for people like me—people who have the courage to become self-employed, start a business, and maybe one day create jobs. So when I found out that I wouldn’t get the grant, I was both surprised and disappointed.

Why? Because I had previously registered a business several years ago, which now disqualified me from this grant. The fact that it was a previous business idea I had since shut down seemed irrelevant. To me, it didn’t make sense—after all, I wanted to start a new business with the potential to grow and create a lasting impact.

Security in the Beginning

What motivated me to apply for the grant was the desire for financial security. Self-employment is an exciting journey, but it also carries risks. I wanted to ensure that in the first six months, I had enough time and space to build my business without worrying about monthly bills. I knew that six months was a short time to put a business on solid ground, but I was ready to take on the challenge because I firmly believed I could achieve enough in that time to lay the foundation for a successful future.

Past Business as an Obstacle

The reason I didn’t get the grant was my previous business registration. In 2016, I founded PINKPONA bio-Tampons, a company that sold organic tampons—a sustainable, socially conscious concept. At that time, I wanted every phase of the supply chain to make a positive contribution, both for the environment and the people involved. Unfortunately, I had to shut down the company during the COVID-19 pandemic, as my employment at the time demanded so much of my time that I couldn’t properly manage the business. Although the business had been inactive for more than a year, it still became a bureaucratic hurdle that made it harder to start anew.

A Regulation That Should Be Reconsidered

In my opinion, the regulation that excludes people with a previous business registration from receiving grants doesn’t make much sense. Of course, I understand the need for rules to prevent abuse. But there are other ways to address this. Why not limit grant eligibility to every five years or require that the business must remain active for a certain amount of time? The current regulation seems counterproductive, especially in an environment like Europe, where starting a business is already more difficult than in other parts of the world. More flexibility and support would be appropriate.

What’s Next?

Now that the grant is no longer an option, I’m faced with the challenge of developing a new plan. Originally, I wanted to spend the next six months fully focused on building my business—client acquisition, business development, and at the same time continuing my training as a life and social counselor. But now I will likely need to look for an additional source of income, whether in the form of a part-time job or remote work. It’s important to me to continue building my self-employment, but at the same time, I need to ensure my family is financially secure.

A Valuable Lesson for My Coaching

I’m taking this experience as a valuable lesson for my future business coaching. When I coach start-ups or other businesses, I will always make sure we have the right experts on board to cover all contingencies. Ultimately, this is a crucial part of the process and an important learning experience on my own journey.

My Advice to Other Entrepreneurs

What I’ve learned from this experience is that it’s important to do thorough research and ensure you’re well-prepared, but sometimes that’s not enough. Although I spent a lot of time researching, I hadn’t considered all possible scenarios. My biggest mistake was not bringing in someone external who really understood these specific grant regulations. In hindsight, an expert or consulting from institutions like the WKO could have helped me better navigate the bureaucratic requirements. My advice to others: Get professional support and make sure you’ve covered all your bases before making important decisions.

All the best

Uwe

P.S.: This week’s book, while not directly related to the topic, also deals with overcoming obstacles. Enjoy reading!

Book: Can't Hurt Me: Master Your Mind and Defy the Odds