The start-up grant is still open: what a new entrepreneur needs to know before applying for up to 20 000 euros

5.06.2026

Applications for the start-up grant are still being accepted in Estonia. This means that new entrepreneurs can still apply for government support to launch their business, create a job and increase sales revenue.

The maximum amount of the start-up grant is 20 000 euros. The grant is intended for an entrepreneur who has been operating for up to three years, has growth potential and a clear business plan, and is prepared to create at least one job.

However, it is important to understand that the start-up grant is not simply “money to get started”. It is a grant for an entrepreneur who can demonstrate that their business can genuinely become operational, grow and remain viable even after the project period ends.

What is the start-up grant?

The start-up grant is a support measure for new entrepreneurs provided by Ettevõtluse ja Innovatsiooni Sihtasutus, or EIS. Its purpose is to help create companies with growth potential, new jobs and sustainable sales revenue.

Put simply, the state does not support just an idea. Support can be applied for when the entrepreneur has a well-thought-out business model, a realistic sales plan, a competent team, and a clear understanding of how the company will generate revenue.

If you only have a very general idea but lack a clearly defined customer, pricing, sales channel and financial plan, your application is likely to be weak. However, if you know who you will sell to, how you will sell, what costs you need to account for and how you will reach the required sales revenue, the start-up grant could be a very good opportunity.

How much is the grant?

The maximum start-up grant is 20 000 euros.

Support is granted on the basis of a standardised unit cost. The unit cost of starting a business is considered to be 25 000 euros, of which:

20 000 euros is the grant;

5 000 euros is the entrepreneur's own contribution.

This means that the support rate is 80% and the own contribution is 20%.

The grant is not paid out all at once. It is disbursed in two instalments.

The first instalment of 15 000 euros is paid after the entrepreneur has created the required job and submitted an interim report on it.

The second part, i.e. 5 000 euros, is paid at the end of the project if the company has met the requirements: the job has been retained, the sales revenue target has been achieved, and the company continues to operate.

This system shows that the grant's purpose is not only to launch a company but also to achieve results.

Who is the start-up grant suitable for?

The start-up grant is suitable for a start-up entrepreneur whose company is no more than three years old and has genuine growth potential.

The grant may be suitable for a company that:

is up to three years old;

plans to create at least one full-time equivalent job;

is able to pay an employee at least the applicable minimum wage;

is able to achieve the required sales revenue;

operates in a field of activity eligible for the grant;

has a competent team;

is able to provide a realistic business plan and financial forecast;

is prepared to comply with reporting and duration requirements.

This grant is not suitable for an entrepreneur who simply wants to test whether an idea might work. The start-up grant requires a clear plan and a willingness to take responsibility for the outcome.

What sales revenue must the company have?

One of the most important conditions of the start-up grant is achieving sales revenue by the end of the project's second year.

If the company's place of business is located in the urban area of Tallinn or Tartu, the company must achieve sales revenue of at least 80 000 euros.

If the company operates elsewhere in Estonia, its sales revenue must be at least 40 000 euros.

This difference is important because the sales revenue requirement is lower outside the larger urban areas. However, this does not mean that the requirement is easy to meet. Achieving sales revenue of 40 000 euros also requires a well-considered sales plan, an existing customer base and a clear offering.

Before applying, it is worth assessing very honestly whether your business model can achieve this objective—not under ideal conditions, but in the real market.

Which companies can apply?

Several conditions apply to applicants for the start-up grant.

The company must be no more than three years old. It must have fewer than 10 employees under employment contracts, calculated as full-time equivalents. The company's sales revenue in the previous financial year must be 40 000 euros or less. In addition, as of the end of the quarter preceding the quarter in which the application is submitted, the sales revenue in the financial year in which the application is submitted must be 40 000 euros or less.

Legal entities may hold up to a 25% stake in the applicant.

In addition, the applicant must not have received more than 300 000 euros in de minimis aid over the past three years.

Restrictions concerning related persons are also important. For example, a person holding an ownership interest or a member of the management board must not be connected to another company operating in the same field in a way that may indicate that the funding is actually being applied for to continue an existing business through a new company.

The rationale is clear: the start-up grant is intended to launch a new business, not to transfer an existing business under the name of another company.

Which sectors are not eligible for the grant?

Not all fields of activity are eligible for the start-up grant. Before applying, it is essential to check that the company's field of activity is not among the excluded fields.

For example, support cannot be applied for in the following fields:

agriculture, forestry and fishing;

wholesale and retail trade;

real estate activities;

manufacture of tobacco products;

gambling and betting;

financial and insurance activities;

legal activities and accounting;

activities of head offices and management consultancy;

advertising, market research and public relations;

rental and leasing;

temporary staffing and other workforce services;

office administration and other business support activities;

other education;

activities related to hard coal, lignite, crude oil and natural gas;

manufacture of coke and refined petroleum products.

Here, one should not rely solely on how the entrepreneur describes their activities. The decisive factor is the field of activity according to EMTAK 2025.

For example, an entrepreneur may think that they provide “business assistance”, “consulting” or “advertising services”, but these fields may be among the excluded areas of activity. Therefore, the EMTAK code must be checked very carefully before applying.

What can the grant be used for?

The start-up grant does not prescribe a very narrow list of which costs are eligible and which are not. The grant can be used to cover the activities and costs necessary for starting a business.

This gives the entrepreneur greater flexibility. However, it does not mean that the grant can be used for just anything. All activities and costs must be related to launching the company and achieving the project's objectives.

For example, a company may need equipment, tools, software, materials, solutions necessary for launching the service, sales materials, or other activities that help the company enter the market.

It is important to show why these costs are necessary, how they will help create a job, and how they will help the company generate sales revenue.

Preliminary consultation must be completed before submitting the application

When applying for the start-up grant, mandatory preliminary counselling at a county development centre is an important step.

This means that before submitting the application, the entrepreneur must contact a business consultant at the appropriate county development centre and submit the required documents.

Preliminary consultation is not merely a formal step. During this process, it is assessed whether the project meets the objectives of the start-up grant and whether the planned activities are realistic.

For preliminary consultation, the following must be prepared:

business plan;

financial forecasts;

CVs of shareholders and management board members;

the company's balance sheet and income statement as at the end of the quarter preceding the preliminary consultation;

if necessary, the company's balance sheet and income statement as at the end of the previous financial year.

The deadline for preparing the preliminary assessment may be up to 30 days from the submission of the supplemented documents. Only after completing the preliminary consultation and receiving the preliminary assessment can an application be submitted in the e-grant environment.

This means that applying should not be left until the last moment.

Which documents must be submitted with the application?

After completing the preliminary consultation, the application must be submitted in the e-grant environment.

The following must be submitted with the application:

a digitally signed preliminary assessment by an employee of the county development centre;

business plan;

financial forecasts;

the balance sheet and income statement as at the end of the quarter preceding the submission of the application;

CVs of shareholders and management board members;

if necessary, a power of attorney if the person signing the application is not authorised to represent the company.

The weakest point in many applications is the inconsistency between the business plan and the financial forecast.

For example, the business plan may state that the company will grow rapidly, but the financial forecast does not show where the sales will come from. Or vice versa: the table contains impressive figures, but the business plan lacks a clear explanation of how the company will achieve them.

A good application must be logical. The business plan, sales plan, costs, job creation and financial forecast must be consistent with one another.

How does EIS assess applications?

When assessing applications that have been deemed compliant, EIS uses the assistance of artificial intelligence. This is one of the newest and most noteworthy changes to the application process.

However, it is important to emphasise that artificial intelligence does not make the final funding decision. The final decision on whether or not a project receives funding is made by EIS.

The application processing time is 20 working days from the date of submission.

The assessment criteria are divided as follows:

35% — the project's alignment with sectoral development plans and its impact on achieving the measure's objectives;

20% — project justification;

15% — project cost-effectiveness;

20% — the applicant's ability to implement the project, including financial capacity, risk management and team competence;

10% — the project's alignment with the fundamental principles and objectives of “Estonia 2035”.

This means that the application is not assessed solely on the basis of the idea. The overall picture matters: the company's capabilities, team, business model, sales plan, costs, risks, and the project's impact.

Why is artificial intelligence used to analyse applications?

EIS uses artificial intelligence to help make the initial analysis of applications faster and more efficient.

Artificial intelligence can help identify inconsistencies, omissions, or areas in documents that require closer attention. For example, it can help analyze whether the business plan and financial forecast are consistent with each other or whether the application contains unexplained risks.

For the entrepreneur, this means that the application must be clear, precise, and well structured. Vague statements, unjustified figures, and inconsistent data can weaken the application.

Artificial intelligence does not replace humans, but it can make the problems in a weak application visible more quickly.

What happens after a positive decision?

If EIS makes a positive decision, the company must create at least one full-time equivalent job within three months.

Within four months of the decision, an interim report must be submitted in the e-support environment. The creation of the job must be documented in the interim report.

For this purpose, the following must be submitted, for example:

an employment contract signed by both parties;

an extract from the employment register.

If the interim report is approved, the first instalment of the grant, i.e. 15 000 euros, will be paid out.

If the job has not been created, no payment will be made.

When is the second instalment paid?

The project period is 24 months.

A final report must be submitted at the end of the project. It must demonstrate that the job created has been retained, the employee has been paid at least the applicable minimum wage, and the company has achieved the required sales revenue.

After the final report is approved, the second instalment of the grant, i.e. 5 000 euros, will be paid out.

In addition, the entrepreneur must take the duration requirement into account. The project outcome must be maintained for at least three years after the final payment.

This is a very important condition. The start-up grant is not a short-term cash injection after which the company can immediately cease operations. The purpose of the grant is to help create a business that will remain genuinely operational.

What should an entrepreneur honestly assess before applying?

Before applying for the start-up grant, it is worth answering a few very practical questions.

Is the company's field of activity eligible for the grant?

Can the company create a job within three months of a positive decision?

Does the company have a realistic chance of achieving sales revenue of 40 000 or 80 000 euros?

Does the business plan clearly show who the customer is and why they buy?

Does the company have sales channels or at least a realistic plan to establish them?

Is the financial forecast based on actual calculations rather than wishful thinking?

Does the team have sufficient skills to carry out the project?

If the answers are vague, the business plan should be strengthened before applying. A weak application does not become strong just because the idea seems interesting.

What are the common mistakes?

One of the most common mistakes is an overly general business plan. If the text contains many fine words but few specific figures, customers, and activities, it is not a strong application.

Another mistake is an overly optimistic sales forecast. If the company promises to quickly achieve high sales revenue, it must show how this will be accomplished.

The third mistake is incorrectly assessing the field of activity. Some companies may think their activity is eligible for the grant, even though according to the EMTAK code it falls within an excluded sector.

The fourth mistake is underestimating the creation of a job. A job is not just a line in a business plan. It means an actual employee, an employment contract, registration, and salary costs.

The fifth mistake is starting the application process too late. Since preliminary counselling must be completed and a preliminary assessment obtained before submitting the application, the process may take time.

For whom could this grant be a good opportunity?

The start-up grant may be a good opportunity for an entrepreneur starting a business in manufacturing, technical services, handicrafts, local services, specialised services, or another field with growth potential.

This is particularly suitable when the company already has a clear understanding of the market and its customers but needs initial capital to get started.

For example, the grant may be needed for tools, equipment, software, materials, or activities related to launching the service.

However, the grant is suitable only if the company can demonstrate how these costs will genuinely help launch the business, create a job, and increase sales revenue.

How can a start-up entrepreneur increase their visibility?

Receiving support is only one part of launching a business. Another major question is visibility: how will customers find the new business?

A start-up entrepreneur needs a place where they can clearly present their service or product. A short listing is not always enough here. Customers want to see who provides the service, what exactly is done, what the terms are, and whether the company has photos, videos, pricing information, documents, reviews, and an easy way to get in touch.

Easyfind helps entrepreneurs present their services like a small business website. A description, photos, a video, a PDF file, company information, and quick contact buttons can be added to the listing. In addition, reviews, ratings, and the company profile help build trust.

This is particularly important for a new entrepreneur who may not yet have a well-known name, a large advertising budget, or an established customer base.

Summary

Applications for the start-up grant remain open, and start-up entrepreneurs can apply for a grant of up to 20 000 euros.

This opportunity is suitable for an entrepreneur who has a realistic business plan, a clear sales strategy, growth potential, and the readiness to create at least one job.

At the same time, the start-up grant is not easy money. The grant comes with specific obligations: creating a job, achieving sales revenue, reporting, and maintaining the project's results for at least three years after the final payment.

Before applying, you must check the eligibility of the field of activity, honestly assess the sales revenue target, prepare a strong business plan, and complete preliminary counselling at a county development centre.

If you would like to see what other opportunities and sources of assistance are available to entrepreneurs in Estonia, you can find an overview here: What assistance and support can a company use in Estonia.

Source: Ettevõtluse ja Innovatsiooni Sihtasutus — https://eis.ee/teenused/starditoetus/