8 Ways Small Business Owners Can Secure Government Funding

8 Ways Small Business Owners Can Secure Government Funding

Government grants for small businesses are a great source of funds for start-up entrepreneurs. Because grants are not debt or equity, entrepreneurs don’t have to repay the money or surrender ownership to attract these funds. Unfortunately, small businesses owners are often overwhelmed by the complex application processes. The following tips can help you tap into government grants.

1. Apply to lesser-known funds

Competition is very high for a fraction of the programs, particularly since some government grants are more popular than others. Hundreds of the not-so-popular funding programs will, therefore, have trouble attracting applicants, as a result of which they are often under-subscribed. However, you’ll improve your odds further if you don’t apply to the same funds as every other applicant. Fortunately, funding search tools that can be used to identify these lesser-known funds are now available online.

2. Highlight how your small business contributes to the economy

In your application, demonstrate how the funds received will help build the economy. Increasing your company’s revenue is not the government’s main objective. As such, the government has to ensure taxpayer dollars are used in a way they will bring socio-economic benefits like the creation of jobs and advancement of regional development.

3. Collaborate with industry leaders

For some government grants, partnering with large corporate applicants is the only way small businesses can attract commercialization and R&D funding. As such, you can increase your eligibility for larger grants by building networks and partnerships within your industry.

4. Explore different types of funding

Many small business owners know about R&D tax credits. However, very few are familiar with the various funding programs available at municipal, provincial, and federal levels. Since new government grants for small businesses are announced on a regular basis, staying informed is important.

5. Present a winning case

The government supports businesses that have achievable short and long-term objectives. To attract the more substantial funding commitments, companies need to have a 3-year strategy at the very least. In your application, show how the funds can help you achieve your company’s goals and ensure overall success.

6. Apply to multiple funds

Small businesses are usually eligible for several different types of government funding. Applying to multiple programs increases your chances of securing a government grant, especially if you base your strategy on facts, data, and analytics.

7. Pay attention to the details

Approximately 80 percent of government grant applications do not make it beyond the screening stage. Failure to meet the basic compliance criteria is cited as the main reason for rejection at this stage. You can improve your chances of success by hiring the services of an expert who understands the eligibility requirements and priorities.

8. Expand your online toolkit

You can use online tools to match your company with the best-suited government grants for small businesses like yours. These tools can aggregate and rank funding programs, reducing the amount of time it would take to search for a suitable grant and opening up a variety of viable funds for your organization.

Doug

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