A Source of Funding For Small Business…
Financing a new entrepreneur venture is imperative for the success of the venture. New entrepreneurs often wonder where to begin. Saberwal, author of the article “Supporting Start-ups” (2017), mentioned certain entrepreneurs as being “…a different breed: highly educated, assessing large amounts of money from diverse sources, growing their teams and dreaming of creating high-end products or services (p. 195).” This description sounds both exciting and motivating. Yet, new entrepreneurs must decide on where to begin in the process of accessing small or large amounts of available funds. Zarenzankova-Posevska, author of the article “Most Favorable Financial Instruments for Entrepreneurship Development” (2017), noted that without funding, new business ideas cannot grow or prosper. One of the most important parts of a new business is, without a doubt, funding. Grants are one source of funding that new entrepreneurs should consider. Grant funding is available (without requiring repayment) when businesses meet certain criteria for individual grants.
Types of Grant Funding:
- Federal Government Grants
Federal grant eligibility for small businesses, depends on the size of the small business. This size determination is made by the U.S. Small Business Administration. Grants.gov is the perfect place to start. This website contains a plethora of information regarding the grant process including basic information about grants, who is eligible to apply, and allows users to search a grant database. Users can filter available grants and apply for those of interest.
- Non-federal entity Grants
These entities include for-profit businesses and nonprofit organizations that provide funding assistance. Several links are available for non-federal entity grants at grants.gov.
Applying for Grants:
Once grants are located, small businesses should consider how best to apply. Hiring an experienced grant writer could be an important choice. Experienced grant writers have the skills to create a successful grant application. Grants are highly sought after; therefore, the overall quality of the grant application is extremely important to beat out the competition. Roszkowska and Konopka (2016) recommend keeping in mind several factors when applying for grants that those giving the grant may consider. These factors include the professional experience of the business founder, evaluation of the start-up’s business plan, and credit history of the applicant (Roszkowska & Konopka, 2016). Making sure to meet all grant requirements is also important. Attention to detail is key.
Where to start looking for grant funding:
Check out the Grants 101 page at the following link: https://www.grants.gov/web/grants/learn-grants/grants-101.html
Educate yourself on eligibility requirements at the following link:
https://www.grants.gov/web/grants/learn-grants/grant-eligibility.html
Determine if your small business size qualifies at the following link: https://www.sba.gov/document/support–table-size-standards
Best of luck Grant hunting!
References
(n.d.). Retrieved August 30, 2019, from https://www.sba.gov/funding-programs
Find. Apply. Succeed. (n.d.). Retrieved August 30, 2019, from https://www.grants.gov/web/grants/learn-grants/grants-101.html
Roszkowska, E., & Konopka, P. (2016). Application of the Mars Method to the Evaluation of Grant Applications and Non-Returnable Instruments of Start-Up Business Financing. International Workshop on Multiple Criteria Decision Making, 11, 153–167. https://doi-org.lopes.idm.oclc.org/10.22367/mcdm.2016.11.10
Saberwal, G. (2017). Supporting start-ups. Current Science (00113891), 113(2), 195–196. Retrieved from https://lopes.idm.oclc.org/login?url=http://search.ebscohost.com/ login.aspx?direct=true&db=a9h&AN=124280375&site=eds-live&scope=site
Zarezankova-Potevska, M. (2017). Most Favorable Financial Instruments for entrepreneurship development. Vizione, (28), 337. Retrieved from https://lopes.idm.oclc.org/login?url=http://search.ebscohost.com/ login.aspx?direct=true&db=edb&AN=125123582&site=eds-live&scope=site