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The program is not designed to create profitable businesses, it's designed to get the unemployed doing small scale businesses that will support them and make th

The program is not designed to create profitable businesses, it's designed to get the unemployed doing small scale businesses that will support them and make then un-unemployed. The article makes it sound like the government is investing in startups - that's not really the case. However, a positive thing I find is that this is second or third iteration of a similar concept that Germany has been trying, and each iteration is fixing the practical problems from the previous. This system would not work in any way in the U.S, because there is no alternative social system. In Germany, you can choose this route, but you can choose other routes that get you also government money if you are unemployed. So there is no pressure to select this method - unless you want to start a business. If something like this were introduced in the U.S, seeing as there is no social system or an alternative way to get money if you're broke, everyone would flood this system trying to cart off as much money as they could. Such a system can only work when there are several other social safety nets - otherwise the system would be heavily scammed.

danielt 16y ago
> The program is not designed to create profitable businesses, it's designed to get the unemployed doing small scale businesses that will support them and make then un-unemployed. I both agree and disagree with this: a business that feeds one man and his family is profitable and is also a success. I've seen it in action personally: My father went through this program about 7 years ago and is now independent, pays substantial taxes and is therefore a 100% success in terms of what this program seeks to accomplish. I am certain that every cent spent on getting him started has since been recouped. A big VC style payoff cannot be the goal, because the government does not take a stake in the business. Instead they're looking to create long-term stable livelihoods.
robotadam 16y ago
The U.S. does have a similar program, the Self-Employment Assistance Program: http://www.workforcesecurity.doleta.gov/unemploy/self.asp http://www.workforcesecurity.doleta.gov/unemploy/self.asp It's a Federal program, but the states have to implement it. Only Delaware, Maine, Maryland, New Jersey, New York, Oregon and Pennsylvania do. In short, if you're on unemployment and you qualify (they have some calculations that determine whether they think you're likely to exhaust primary unemployment anyways) then you can retain your unemployment benefit while starting a company, instead of looking for jobs. One of my co-founders and I were on this after our last employer went under, and it helped a lot, keeping us focused on building the business instead of taking consulting work to pay the rent.

danielt 16y ago

> The program is not designed to create profitable businesses, it's designed to get the unemployed doing small scale businesses that will support them and make then un-unemployed. I both agree and disagree with this: a business that feeds one man and his family is profitable and is also a success. I've seen it in action personally: My father went through this program about 7 years ago and is now independent, pays substantial taxes and is therefore a 100% success in terms of what this program seeks to accomplish. I am certain that every cent spent on getting him started has since been recouped. A big VC style payoff cannot be the goal, because the government does not take a stake in the business. Instead they're looking to create long-term stable livelihoods.

robotadam 16y ago

The U.S. does have a similar program, the Self-Employment Assistance Program: http://www.workforcesecurity.doleta.gov/unemploy/self.asp http://www.workforcesecurity.doleta.gov/unemploy/self.asp It's a Federal program, but the states have to implement it. Only Delaware, Maine, Maryland, New Jersey, New York, Oregon and Pennsylvania do. In short, if you're on unemployment and you qualify (they have some calculations that determine whether they think you're likely to exhaust primary unemployment anyways) then you can retain your unemployment benefit while starting a company, instead of looking for jobs. One of my co-founders and I were on this after our last employer went under, and it helped a lot, keeping us focused on building the business instead of taking consulting work to pay the rent.