Can you claim unemployment and start your own business? As an employee of a company every month a deduction from your gross salary goes towards unemployment insurance, although the company does pay a portion to the same fund for you, essentially that money is your own money which is made available to you once you have been fired or retrenched from your current place of employment.
So then if it is your own money, why is it illegal to start your own business while claiming unemployment? Simply because the government sees entrepreneurs as being employed, the fact that you are not earning a salary and cannot contribute towards unemployment for the first few months in your own business does not matter.
With the concept of life long employment long gone, as the average life span of a position in a company is between 3 and 4 years, the best option is to get creative and start your own business. Although you not allowed to claim unemployment insurance while doing this, you can assist the worldwide employment problem once your company is a little bigger and you need to employ staff yourself.
Some governments have noticed the problem between being unemployed and wanting to start your own business but not being able to claim unemployment and have started Self Employment Assistance programs.
In my opinion the most effective means of being your own boss and claiming unemployment would be to start your own business before you are fired and make sure your earnings are below the brackets where you have to notify the government of your actions. Once you earning enough and are bigger you can notify the government and follow their procedures.
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