Subsidised Start-Ups for the Unemployed in Less Developed Region: Effects Behind Efficiency

Abstract

One of the tools that governments use to support entrepreneurship is to support entrepreneurship through subsidised start-ups for the unemployed. This tool attempts to solve two problems at once. It acts as an active labour market policy tool to reduce unemployment. On the other hand, as an economic policy measure, it seeks to promote the development of entrepreneurship. Most existing studies focus mainly on measuring the sustainability or effectiveness of this tool.
 The aim of this article is to identify the pros and cons of this tool from the perspective of the beneficiaries of this support themselves. The research was conducted through interviews with the beneficiaries of the support as well as those institutions that are in some way involved in the process of this support. The interviews took place in the years 2019 -2020 in the Banská Bystrica Region in the Slovak Republic, which is one of the most underdeveloped regions in the European Union.
 The results of the research show that the support itself also has a positive impact on other aspects of life than the business itself. A large proportion of respondents reported that they are happier in life than before and that their business is much more fulfilling than their previous job. At the same time, however, they point to a distinct form of inefficiency of the support as a tool for entrepreneurship support, with many beneficiaries not using this tool with the primary goal of starting a business. Some of the supported start-ups started their business only as a cover for black and dependent work or as a form of part-time work.