From Unemployment to Entrepreneurship:
The Directorate of Labor Initiative project
Got a business idea while looking for a job? The Directorate of Labor’s Initiative program is here to help unemployed individuals turn their entrepreneurial dreams into reality. Whether you have an innovative product, a service, or a development project in mind, this program provides the guidance and support needed to create your business opportunity. More than 230 projects have passed through the accelerator, resulting in the founding of 80 companies—about one-third of all participants successfully launching a business.
The Initiative program offers comprehensive guidance and assistance to those with a business idea, whether it is in innovation, development, production, or service sectors. Its ultimate goal is to aid participants in developing their ideas, assessing market demand, and creating viable business plans that can lead to new employment opportunities.
Eligibility and Requirements
To participate, jobseekers must meet some criteria. The most important are:
Have an approved unemployment benefit entitlement with at least six months remaining.
The business idea must show potential for creating employment for the participant.
The jobseeker must not have an open business registration number before applying or be registered as an employer.
Participants must commit to working full-time on their business idea and engage in educational workshops.
A detailed business plan must be submitted to The Directorate of Labor within six months of joining the program.
Applications for the program are reviewed by a committee and can only be submitted online through The Directorate of Labor's website from the 1st to the 30th or 31st of each month. Application reviews are completed by the 15th of the following month, and accepted participants typically start their training the next month.
Program Structure
The Initiative program runs for three months and includes training, mentoring, and weekly meetings. Participants attend workshops and access video training (available in Icelandic with English subtitles) covering essential topics like business plans, company structure, and pitching ideas to potential investors. Workshops emphasize peer learning, with participants presenting their progress and giving each other feedback. The final requirement is a 6-12 page business plan, which will be reviewed by a supervisor.
Post-Training Pathways
After completing the three-month program, participants can choose one of the following options:
Deregister from the unemployment registry and begin full-time work on their company.
Work part-time on their company.
Abandon the idea and return to full-time job searching.
In cases where participants decide to stop pursuing their business idea, they must inform The Directorate of Labor and sign an agreement not to launch the business without prior notification.
The Initiative program offers a valuable opportunity for jobseekers to transform their business ideas into reality, with comprehensive support and training to navigate the process. By fostering entrepreneurship, the program contributes to job creation and empowers unemployed individuals to take control of their career paths. For more information or to apply, visit The Directorate of Labor’s website or contact their counsellors at frumkvaedi@vmst.is.
More information can be found on the Directorate of Labor’s website.