The want for government funding for your small business is often confused with the need for government funding. However these are two very different situations that a small business owner can be in. So do you need or want government funding to help you startup or grow?
Many people refer to government funding as “easy” or “free money” and most of the time this is where the desire for government funding comes from. The banks make getting a loan very difficult with a lot of paper work and high interest rates and just overall scary for business owner. But a government grant, money that may not have to be paid back, or a government loan with little to no interest, well now that sounds like the ideal situation.
When this type of idea pops into the mind of startup, they simply want want want. It’s “free money” that can be used to help you with hiring staff, training employees, to pay for adverting, purchase tools and equipment, to improve cash flow..etc
But the need for government funding is a bit different. Most entrepreneurs that need the funding from the government need it because they are financially stuck. Most likely stuck to a point that they can’t startup, or they can’t hire staff, or can’t make payments. So the option of government funding is definitely a want, however it’s more of a need.
So why your small business may need funding?
The Canadian government has hundreds of government funding schemes from various funding agencies who provide assistance to new and existing small business owners. The funding comes in many different forms and types such as; government grants, government loans, tax breaks and credits and incentives. Taking advantage of one or more of the different available funding types can boost your business.
Funding that is available through these various funding schemes may help small business owners financially to:
- pay for startup or expansion costs
- to hire and train employees
- to pay for tools and equipment
- to make leasehold improvements
- for business renovations
- to conduct research and development
- to study markets
- to improve cash flow
- and much more.
Thus the need for funding is something a lot of startup and struggling business owners turn to the government for.
How to get government funding for you your small business in the UK
Getting government funding for your own small business ins’t something that you just go and get. It’s not like a bank loan that you fill out an application, talk to a bank branch adviser and sign a paper. A government grant or loan scheme is much more labor intensive.
One of the biggest difficulties of government funding is actually finding the funding scheme that is right for your small business.
Because there are hundreds of government funding schemes scattered across the UK, not all schemes are applicable to everybody. There are certain criteria which a small business owner has to look at when searching for government funding. To help locate funding available consider breaking your search up to your own region, your own industry and for only the funding needs which you require to have funded.
Once a funding scheme has been located; follow the instructions, ensure you meet all of the criteria asked by the funding scheme and apply.