De
Digital transformation presents small and medium-sized enterprises with enormous challenges. Skilled workers are scarce, processes are inefficient, and artificial intelligence often feels like a closed book. At the same time, pressure is rising: competitors are digitizing, customers expect faster responses, and productivity has to increase.
This is exactly where INQA Coaching comes in. This federal funding program enables SMEs to receive professional support for digitalization and AI with grants of up to 80%. But which projects are actually eligible? What is subsidized—and what is not? This article explains it.
What Is INQA Coaching?
INQA Coaching is a federal support program that has been offered since 2023 by the Federal Ministry of Labour and Social Affairs as part of the Initiative Neue Qualität der Arbeit (INQA). It is specifically aimed at small and medium-sized enterprises navigating digital transformation and wanting to make their work, processes, and collaboration future-proof—with a strong focus on digitalization and artificial intelligence.
The program’s goals are clearly defined:
- Secure future viability through modern ways of working and digital solutions
- Attract and retain skilled workers by creating attractive working conditions
- Promote healthy work through more efficient processes and reduced workload
- Strengthen competitiveness through AI-supported innovation
Unlike traditional consulting, INQA Coaching is designed as a partnership on equal footing. Certified coaches support companies in analyzing, designing, and implementing change projects—together with employees. The aim is not to deliver finished solutions, but to enable the organization to develop sustainable improvements on its own.
Typical durations range from 7 to 13 months, with a scope of 10 to 12 consulting days. The program is divided into three phases:
- Initial phase (approx. 1 month): goal alignment and needs analysis
- Innovation phase (3–4 months): development and implementation of measures
- Learning phase (approx. 1 month): evaluation and sustainability review
INQA Coaching at a Glance
| Criterion | Details |
|---|---|
| Funding rate | Up to 80% of coaching costs |
| Target group | SMEs with up to 249 employees |
| Topics | Digitalization, AI, work organization, leadership |
| Scope | Up to 12 consulting days |
| Daily rate | €1,200 per day |
Which Digitalization and AI Projects Are Eligible for Funding?
INQA Coaching supports projects that further develop work, processes, collaboration, and leadership toward digitalization and AI. The key point: this is not about purchasing technology for its own sake, but about changing work processes using digital and AI-supported methods.
Eligible project areas at a glance:
- AI-supported process automation
- Introducing data-driven ways of working
- Optimizing internal workflows using digital tools
- AI-based analytics and decision-support systems
- Developing a digital strategy or AI roadmap
- Employee training and skills development
Important: INQA Coaching must always start from a concrete operational need for change.
AI-Supported Process Automation
Automating routine tasks with AI is one of the most common fields of application in INQA Coaching. Typical use cases include:
- Automated email classification and routing
- AI-supported document recognition for invoices, delivery notes, and orders
- Automated quote creation in skilled trades (e.g., carpentry, HVAC/plumbing)
- Intelligent workflow control in order processing
During the coaching, the company and coach work together to determine which processes are suitable for automation. The coach helps analyze the current state, design a target process, and select appropriate AI tools.
Introducing Data-Driven Ways of Working
For SMEs, “data-driven” means decisions based on order, production, sales, or service data—not gut feeling. This transformation is a core theme in INQA Coaching and offers huge opportunities for the SME sector.
Typical use cases:
- Building simple sales dashboards (inquiries, quotes, conversions)
- Evaluating machine data in manufacturing or production
- Analyzing failures and maintenance intervals
- Monitoring delivery times and inventory levels
Coaching focus:
In the coaching process, data sources are identified, relevant KPIs are defined, and reporting routines are established. Data protection (GDPR), roles, and responsibilities for data analysis can also be part of the project.
Optimizing Internal Processes with Digital Tools
Many SMEs still rely on paper folders, Excel lists, and verbal handovers. These “pain points” hold significant potential for efficiency gains and are typical starting points for INQA Coaching.
Typical projects include:
- Digital job folder instead of paper
- Introducing a ticketing system in service
- Digital vacation requests and time tracking
- Digital handovers for shift work
- Introducing collaboration platforms
Coaching helps capture analog problems (media breaks, duplicated work, errors) in a structured way and translate them into a digital target process.
AI-Based Analytics and Decision-Support Systems
AI-based analytics and decision systems evaluate large volumes of data and provide recommendations. These systems can be used in many areas:
| Area | Example |
|---|---|
| Retail | demand forecasting and planning |
| Warehouse | automated replenishment suggestions |
| Production | capacity planning and machine utilization |
| Customer service | prioritization of support tickets |
| HR | workforce planning and shift optimization |
In INQA Coaching, the focus is on:
- Requirements definition: what should the system deliver?
- Selection criteria: which vendors/solutions fit?
- Scenario planning: how are decisions prepared?
- Employee involvement: how is acceptance created?
- Feedback culture: how are AI recommendations reviewed?
Developing a Digital Strategy or AI Roadmap
Strategic projects are explicitly eligible. A structured digital strategy or AI roadmap creates orientation for the next 3–5 years.
Typical roadmap content:
- Current state analysis: where are we today?
- Target vision for 2027/2028: where do we want to be?
- Prioritized initiatives: what matters most?
- Time and resource planning: what is realistic?
- Change management: how do we bring everyone along?
Employee Training & Skills Development
INQA Coaching is not only about technology—it is primarily about people. Building capabilities in digitalization and AI is a core eligible component, as long as it is embedded in a concrete change project.
Eligible training topics include:
- Basic AI understanding for all employees
- Trainings on text AI, image AI, and chatbots in daily work
- Workshops on digital collaboration (M365, project tools)
- Awareness for data protection and information security
- Agile methods and new ways of working
The coach analyzes learning needs, defines learning paths with management, and builds internal multipliers. The goal is sustainable development—not a one-off training session.
Not Eligible: Typical Exclusions
INQA Coaching funds concepts, change processes, and guided implementation—not pure technology investments. Specifically, this means:
| Not eligible | Example |
|---|---|
| Pure software licensing | buying ERP/CRM/AI software without a concept project |
| Hardware investments | servers, laptops, tablets, robots, sensors |
| Operational implementation | programming, system customization, website creation, setup |
| Outsourced operational services | ongoing bookkeeping services, call center services without coaching |
The coaching component is decisive: analysis, conceptual work, and change support are funded—procurement and technical implementation are not.
Who Can Apply for INQA Coaching?
INQA Coaching is aimed at SMEs and certain non-profit organizations.
Eligibility at a glance:
- SMEs up to 249 employees: measured as full-time equivalents on the reporting date; typical sectors include skilled trades, services, industry, and social economy
- Annual turnover under €50 million: alternatively, balance sheet total under €43 million (according to the EU SME definition)
- Operating for more than 2 years: start-ups should use other programs; INQA targets established structures
- Based in Germany: legal seat and operating site must be in Germany
Non-profit organizations may also be eligible in certain cases. For multi-branch businesses or corporate groups, special rules apply—this is best clarified in an initial call with an authorized coach.
Benefits for SMEs: Why INQA Coaching Is Especially Attractive
INQA Coaching enables companies to test digitalization and AI with low internal risk, follow a structured approach, and involve employees from the start.
Up to 80% grant
Funding covers up to 80% of coaching costs. With a maximum daily rate of €1,200 and up to 12 consulting days, total funding can reach €11,520. The company’s own contribution remains manageable.
Focus on digitalization and AI
Projects with a digital and AI focus are explicitly welcomed. The program targets improvements in working conditions, efficiency, and skilled worker retention through modern technologies.
Certified coaches
All INQA coaches go through a strict authorization process and are listed in an official coaching directory. Quality checks ensure that companies are supported only by experienced professionals with proven expertise.
Fast approval
From application to approval typically takes 3–6 weeks when documents are complete. Compared to many other funding programs, the process is lean and efficient.
High impact with low risk
SMEs build know-how, prepare pilot projects, and avoid bad investments—before spending large budgets on IT and AI. The coaching lays the foundation for sound decisions.
Practical SME Examples
The following examples show how companies from different industries have benefited from INQA Coaching. The cases are anonymized but realistic and based on typical program experience.
Each example highlights the coaching component (analysis, concept, guidance) and the specific role of digitalization and AI.
Automating a Recruiting Process
Starting point: A mid-sized supplier with around 120 employees struggled with long hiring cycles. Applications came through multiple job portals, were processed via email, and tracked in Excel lists. Media breaks and lack of visibility caused delays and frustration—for HR and candidates alike.
Coaching focus: The entire process from application receipt to hiring was analyzed. Together with HR and management, a target process was defined, an applicant tracking system with AI pre-screening was selected, and standardized selection criteria were established.
AI component: The AI solution enables automatic matching of CVs to role requirements, classification of cover letters, and suggested standard responses.
Results:
- 25% shorter time-to-hire
- Over 40% reduction in manual steps
- Greater transparency for the HR team
AI-Supported Document Analysis
Starting point: An engineering office with 35 employees processed tender documents, contracts, and technical specifications daily. Analysis was time-consuming and prone to errors.
Coaching focus: Recurring document types were identified, key information requirements were defined, and a target model for semi-automated evaluation was developed. Clear rules determined what still required manual review.
AI component: AI tools for text recognition, classification, extraction of key content, and automatic short summaries were introduced.
Results:
- 40% less reading time for standard documents
- Lower error rate in extracting information
- Better traceability for new employees
Building an AI-Based Customer Service Setup
Starting point: A retail company faced high email and phone volume in customer service. Many requests were repetitive—delivery status, complaints, product information—time-consuming and standard.
Coaching focus: The most common inquiries were analyzed and segmented by complexity. A service concept combining self-service, chatbot, email automation, and human support was developed.
AI component: A website chatbot answers standard questions, emails are automatically categorized, and service agents receive suggested response building blocks.
Results:
- 30% fewer routine calls
- Faster response times
- Higher customer satisfaction while reducing team workload
Introducing a Data-Driven KPI System
Starting point: A production company with 60 employees worked without structured KPIs. Utilization, lead times, complaints, and OEE were not systematically tracked—decisions relied on experience and estimates.
Coaching focus: Relevant KPIs were defined together, data sources (MES, ERP, Excel) were identified, and a dashboard concept for management and department heads was designed.
AI component: AI pattern recognition functions detect outliers in production data and provide suggested root-cause hypotheses.
Results:
- Transparency on production bottlenecks
- Structured improvement cycles with teams
- Measurable reduction of error rates within six months
Linvelo’s Role in INQA Coaching
Linvelo is an authorized INQA coach specializing in digitalization and AI for SMEs. We support SMEs across Germany in using the opportunities of digital transformation in a structured, practical way—focused on sustainable outcomes. Our key areas include process digitalization, introducing AI assistants and chatbots, data-driven management, and automation of routine tasks.
Typical clients are companies with 10 to 250 employees in skilled trades, industry, services, and the social economy. With a compact initial consultation and a potential workshop, we assess whether your initiative is eligible and prepare the INQA application.
We support not only concept development, but also the selection and introduction of practical AI solutions—within the program’s funding conditions. Agile methods such as Scrum ensure fast progress and strong employee involvement.
How SMEs Get Funded INQA Coaching
From the first call to the start of coaching, the process typically takes 4–8 weeks and follows a clear structure:
- Initial contact
Reach out to an authorized coach such as Linvelo. In the first conversation, eligibility, project idea, and rough scope are clarified.
- Develop a project outline
Together with the coach, a project outline is created: starting point, goals, planned measures, and expected impact.
- Formal application
The application is submitted to the responsible regional IBS advisory office. Required documents include annual financial statements and SME confirmation.
- Approval phase
Approval typically takes 3–6 weeks.
- Coaching kick-off
After approval, coaching starts with a kick-off workshop. The project is refined, milestones defined, and responsibilities agreed.
- Implementation and completion
Ongoing implementation with reviews, concluding workshop for evaluation, and planning next steps after funding ends.
Costs & Funding Amount: What SMEs Actually Pay
INQA Coaching is one of the most attractive funding programs for SMEs. The funding rate is up to 80% of eligible costs. The maximum daily rate is €1,200 net, and up to 12 consulting days are possible per company.
Example calculation
| Item | Amount |
|---|---|
| 12 consulting days × €1,200 | €14,400 |
| 80% grant | €11,520 |
| Company contribution | €2,880 (plus VAT) |
The coaching contract clearly defines daily rates, planned scope, and payment terms. The company pays the invoices first and receives the grant portion after project completion (handled via DRV KBS). This transparent structure provides planning security and minimizes financial risk.
Conclusion
INQA Coaching is currently one of the most effective funding opportunities for SMEs to tackle digitalization and artificial intelligence in a structured way—with a strong focus on employees.
The key point: eligible projects always start from a concrete operational problem—skills shortages, efficiency pressure, quality requirements. Technology is not the core focus; improving work and processes is.
