When the business doesn't carry — what safety nets are there?

There is little information aimed at entrepreneurs in services for those on low incomes. Here we have gathered the most important supports, the routes of unemployment security, and help for when the business doesn't bring in income or it's time to stop.

1. For the starting entrepreneur — the start-up grant

The start-up grant (starttiraha) supports your livelihood at the start of business activity, when income doesn't yet cover living. In 2026 it is 37.21 €/weekday (about 740 €/month), lasts at most 12 months, and the processing time is 2–4 weeks. The increased part was removed — only the basic part is granted. The conditions are full-time entrepreneurship and sufficient capability (experience or training).

Apply in the right order. Apply for the start-up grant BEFORE the business ID and starting activity — starting the activity closes the door. The start-up grant cannot be received at the same time as unemployment, sickness or parental allowance, nor if you have received a start-up grant in the past 5 years.

Job Market Finland — apply for the start-up grantApply before registering the business ID

tyomarkkinatori.fi

New Enterprise CentreFree advice on starting a business and on finances

uusyrityskeskus.fi

2. Insurance and security — YEL

YEL insurance (the self-employed person's pension insurance) is mandatory if your YEL income exceeds the lower limit and you are over 18. The most important thing to understand: YEL income determines not only your pension but also the level of sickness allowance, parental allowance and unemployment security. In 2026 the lower limit is 9,423.09 €/year and the upper limit 214,000 €/year. The work requirement accrues from YEL income of at least 15,481 €/year.

Don't underestimate your YEL income to save. Too low a YEL income cuts your entire social security — sickness allowance, parental allowance and unemployment security. Cheap insurance means weak security exactly when you need it.

3. When you fall ill — sickness allowance

Sickness allowance compensates for lost income when illness prevents you from doing your own work. For an entrepreneur, YEL insurance is decisive: it both shortens the waiting period and determines the amount of the allowance.

The waiting period depends on your insurance:

With YEL insurance the waiting period is short: only the first day of illness. From the working day after you fall ill you receive YEL allowance. Once the illness has lasted the general waiting period (the first day of illness + 9 working days), the YEL allowance turns into the actual sickness allowance.
Without YEL insurance the waiting period is the same as for an employee: the first day of illness and the following nine working days. The first week and a half are then left without compensation.
As a farmer (MYEL) the waiting period is the first day of illness and the following three calendar days. Mela sickness allowance is paid from the fifth day of illness.

Apply within two months. Sickness allowance is claimed from Kela within two months of the start of your incapacity for work. If you have YEL insurance, mark on the application that you are claiming YEL allowance for the waiting period — otherwise it may go unpaid.

Sickness allowance is calculated from your confirmed YEL income — not from the company's turnover, profit or private withdrawals. Kela calculates the annual income from the 12 calendar months preceding the month before the allowance begins. The higher your confirmed income, the larger the allowance. If there is no confirmed YEL income, the allowance is calculated from your other taxable earned income, or falls to the minimum amount. Kela always calculates the exact sum; you can estimate the order of magnitude with Kela's sickness allowance calculator.

Check before you apply. The level of your YEL income (see section 2) decides your security when ill too: a confirmed income set artificially low produces a low allowance exactly when no other income is coming in. Always confirm the current waiting period and the amount directly with Kela.

How to apply in practice:

Ask your doctor for a medical certificate (an A certificate) of your incapacity for work.
Apply for sickness allowance in OmaKela. State your YEL insurance and that you are claiming YEL allowance for the waiting period.
Kela pays in arrears: the first instalment after about six working days, the following at roughly 25-day intervals.

If you can work part-time, you can apply for partial sickness allowance, which is half of the full amount. For the same illness, allowance is paid for at most about 300 working days, i.e. roughly one year. If your work ability does not recover during this time, your right to a rehabilitation subsidy or a disability pension is assessed.

OmaKela — apply for sickness allowanceApply within 2 months · state your YEL insurance

oma.kela.fi

Kela — when a self-employed person gets illWaiting period, amount and how to apply

kela.fi

4. When you become unemployed — two routes

An entrepreneur's unemployment security depends on whether you belong to the Entrepreneurs' Fund.

Member of the Entrepreneurs' Fund → earnings-related allowance. If you belong to the fund and your YEL income has been at least 15,481 €/year, you can get earnings-related unemployment security — clearly higher than the general benefit.
Without a fund → general benefit from Kela. The general benefit (yleistuki) (about 800 €/month) replaced the basic unemployment allowance and labour market subsidy on 1 May 2026. The business must be ended or interrupted — or shown to be a sideline.

The general benefit is means-tested. Business income and capital income are taken into account. An entrepreneur's income is usually calculated according to the confirmed YEL income, not the salaries withdrawn. Check your own situation and the current income limits with Kela.

OmaKela — apply for the general benefitFirst register as a jobseeker with the employment services

oma.kela.fi

5. When the business doesn't carry — help with financial difficulties

An entrepreneur doesn't have to manage alone. Here is help for each situation:

Financial and debt counselling — free and confidential. It helps with small financial matters too, not just debts.
Velkalinja (Guarantee Foundation) — free advice line 0800 9 8009, when debts have reached crisis point.
Entrepreneur's social assistance — apply in OmaKela. Kela assesses the profitability of the business activity.
New Enterprise Centre — free advice also on ending the activity and on financial difficulties.

Financial and debt counsellingFree, statutory · offices throughout the country

oikeuspalveluvirasto.fi

Velkalinja (Guarantee Foundation)Free and anonymous · weekdays 10–14

0800 9 8009

6. Winding the business down in a controlled way

If the activity is unprofitable, a controlled wind-down is often better than getting further into debt.

Notify the closure to the BIS (ytj.fi) — it stops YEL payments and other obligations.
Apply for unemployment security immediately after the closure.
You can also put the activity on hold without ending it, but YEL keeps running then.

ytj.fi — report changesBusiness Information System

ytj.fi

Information checked in June–July 2026 (sources: Kela, Yrittäjät.fi, ETK, TE Services) — figures and rules can change. This page does not replace professional advice; check your own situation directly with an authority or free business advice. Nothing is stored about you.