When it Comes to Funding, are Government Grants an option?

When it Comes to Funding, are Government Grants an option?

This is one of the frequently and commonly asked questions by young entrepreneurs and owners of small businesses. The answer is ‘no‘ in most cases. But small businesses, particularly those who are engaged in scientific research and technology innovations, can sometimes benefit from these grants provided by the government.

Below are some of the facts about the government and their grants for small entrepreneurs and businesses, including how to go about finding who is eligible.

Can I get Government Grants To Start My Enterprise?

On the internet, you may have seen adverts offering access to free money for your start-up business. It is always wise to make these claims with a pinch of salt, even though it is not unreasonable to expect the government to provide grants to startup businesses. This is because the government grants are funded by tax money and so the money is spent with stringent rules.

The state and federal governments do not provide grants for the following businesses despite all the ads and TV infomercials you hear about.

  • Paying off debt
  • Starting a business
  • Covering operational expenses

There are distinct types of government grants available. They are, however, limited to specific causes and industries such as medical and scientific research. Your federal or state government is a big source of subsidies. They are also tied closely to government objectives; eligibility is strict concerning requirements, which include small local businesses.

How to Find Grants

If you evaluate yourself and think that you can be eligible to get a government subsidy, or if you are not sure enough about your validity of some claims in the adverts and the media, you should try checking out subsidies in the government. This is a directory where the government posts federal grants for the public, and the public can choose depending on their eligibility by category and issuing agency such as science and technology or the environment.

Bottom Line

In reality, starting a business for most entrepreneurs need not break the bank. The latest research shows that more than 40 percent of start-up businesses get established with little financing and up to 25 percent of startups do not use startup investment.

So before you get into the notion of ‘free money’ you should accurately assess your funding needs. This also includes capital assets like printers and laptops office space, web hosting and also the amount of cash you want to keep you floating before the business starts gaining the market and attract enough profit.

Be sure to develop fully a test of your product so that it’s ready for market and complete before seeking funding or marketing

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