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Entrepreneurship Research Center on G20 Economies VOL.17 June 2020

Supporting Policies for Flexible Employment During the Epidemic in Some G20 Members

In 2020, the sudden outbreak of Covid-19 caused many Europe
entrepreneurs stuck in the troubles. A lot of start-up
enterprises can’t survive from the loss of customers, broken The German Federal Government specifically considered start-
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capital chain, and other issues caused by the Covid-19. While ups and SMEs by announcing a package of measures for those
some star-ups are in the initial stage, or the development businesses in the crisis to be eligible to receive economic
stage, and can’t benefit from governments’ economic aid measures. The EUR 2 billion packages of measures for
assistance programs to support small and medium-sized start-ups and SMEs were announced on April 17th, 2020,
enterprises. In the post-epidemic era, entrepreneurship will and enacted as of April 30th, 2020. The package of measures
play a key role in solving employment, driving innovation, comprises two pillars:
promoting economic development and social stability, of
(1) The first pillar is the Corona Matching Facility. Through the
which most G20 member economies are aware and have
existing cooperation with public partners, it will be expanded
introduced or plan to add some targeted policies and
to ensure that the public funds are accessible to start-ups via
measures to help start-ups get out of the trouble, through
VC funds. Such federal partners inter alia are KfW Capital and
encouraging R&D and technological innovations, increasing
the European Investment Fund. The VC funds are eligible to
inclusive entrepreneurship support, enhancing financing
apply for this program and may match public resources in a
opportunities, and promoting the rapid development of start-
ratio of up to 70 (public) to 30 (private). These may be VC funds
up enterprises.