Funding for Businesses
Funding – Who, What, and How?
In times of economic change, government funding can be a crucial success factor for businesses. That’s why the Federal Office for Economic Affairs and Export Control (BAFA) and the Federal Ministry of Labour and Social Affairs (BMAS) offer attractive funding programs – especially in the area of consulting – that help small and medium-sized enterprises (SMEs) increase their competitiveness.
But what types of funding are available for businesses? How high are the grants? And who is eligible to receive BAFA and INQA funding? This article provides an overview.
What funding programs are available for businesses?
BAFA offers various programs to support companies – primarily financial assistance for consulting as well as topics related to energy efficiency and digitalization. Here are the main funding programs:
1. Funding for Business Consulting
- Funding for Consulting Services for Small and Medium-Sized Enterprises (SMEs)
- Focus areas: digitalization, sustainability, and process optimization
- Subsidies are available for consulting services provided by qualified experts
Examples of Consulting Services Covered by Funding:
- Succession Planning in Family Businesses
- Organizational Development & New Work Consulting
- (Sustainable) Product Development & Innovation Strategies
Important: The maximum consulting duration is limited to five days. Seminars and workshops are excluded from company funding programs.
2. Funding for Innovation in Companies
- Investing in New Technologies and IT Security
- Consulting for Sustainable Transformation & Change Management
3. Funding for Energy Efficiency and Climate Protection Measures
- Funding for Energy-Efficient Technologies
- Optimization of Process and Production Workflows
4. Funding for Founders and Start-ups
- Subsidies for Strategic Advice in the Early Stages of a Business
- Expert Support with Market Access and Funding Opportunities
How much funding can a company receive?
The amount of BAFA or INQA funding available to companies depends on the specific program. Here are a few examples:
- Business Consulting: Subsidies covering up to 80% of consulting costs, depending on the region
- Energy Efficiency Measures: Between 30% and 60% funding, depending on the specific project
- Digitalization and Innovation: Varies by program — often up to 50% of eligible costs
The level of funding depends on the company’s location:
- Up to €2,800 for businesses located in the new federal states (excluding Berlin and the Leipzig region), as well as the Lüneburg and Trier regions (subsidy rate: 80% of consulting costs)
- Up to €1,750 for businesses in the old federal states (excluding Lüneburg and Trier), as well as in Berlin and the Leipzig region (subsidy rate: 50% of consulting costs)
Who is eligible for BAFA or INQA funding?
In general, the following groups are eligible to apply for BAFA funding:
- Funding is available for small and medium-sized enterprises (SMEs) from nearly all sectors
- Start-ups and new businesses in need of professional consulting
- Self-employed individuals and freelancers who meet the eligibility criteria
- Companies based in Germany that fulfill the specific requirements for funding
Applications must be submitted online via BAFA’s or INQA’s official application platform. Further details are available in this downloadable PDF.
Conclusion
BAFA and INQA funding provides valuable support for companies seeking strategic consulting, transformation, and innovation. By reducing financial burdens, these programs help small and medium-sized enterprises remain competitive.
As a registered consultant, I support you in developing, reviewing, or optimizing your business strategy — including topics such as succession planning, sustainable product development, and innovative work practices.
Schedule a non-binding consultation today and discover how to make the most of government funding for your business needs.
