Posts Tagged ‘EU’

What sources you can find to fund your small business?

When you are looking to start new business or when you try to develop the one that you already have, you usually face one big problem: from where to get the money to do so? There are a couple of options: finding investors, trying to get government funding or getting partners. It’s not a big surprise that the second option is most desirable and hardest to get due to the big competition that you’ll face along the way. Here are some sources that you can use to get these needed business grants.

  1. Regional growth funds.

They are governed by organizations awarded with cash from the fund for Regional growth. These organizations perform programs that offer loans and grants to small businesses. Every program has different criteria but the common ones are these:

  • be based in the state;
  • want to grow, strengthen or consolidate their business
  • be investing own private capital
  • be unable to find funding for the application elsewhere
  • be compliant for state aid
  1. Local authority support.

Local councils offer awards, grants and schemes set to help the growth and development of small businesses. Check the site of your local council for such options or turn to them directly with letter.

  1. European Union funding.

If you want to outgrow the borders of your country, the funding from the European Union is one good way to do it. Every year about €375bn are distributed for small business grants passing through grant-awarding organizations. There are grants available for every region and country so check the site of the EU Commission to see the possibilities you have in your area.

  1. Specialized grants.

They are awarded by organizations to companies and individuals that match specific criteria or operate in specific industry. For UK such organizations are:

  • The Technology Strategy Board (TSB) that supports the development of products and technologies and offer funding and advice to small businesses that aim in innovations.
  • The Manufacturing Advisory Service (MAS) provides review of manufacturing businesses for free; also MAS offers grants in attempt to help with project or improvement costs.
  • The Prince’s Trust offers grants and mentoring to young entrepreneurs up to 30 years of age.
  1. Tax allowances.

This is one option that many governments offer to ease the costs and to promote creation of small businesses. Ask your local authority for specific allowances that you can use.

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Small business grants in UK

Every country seeks for ways to develop its economics and it seems nowadays that this development is in the hands of the small business. That’s why many governments gladly fund small companies with grants, loans and other ways. One of the countries with long long history in the business area is the United Kingdom. Here is what you need to know for the grants that its government gives:

  1. Positive sides of the business grants.
  • You don’t have to return them or to pay interest on them, in other words they are non-repayable.
  • You have all the control over your business and the decisions connected to it.
  1. Negative sides of the business grants.
  • They are hard to get because there is a great competition.
  • There is a lot of information you need to get and a lot of documents to fill; besides receiving the actual money can take a long time. The process of application and receiving of the business funding grants is very time-consuming.
  • Grants often go to projects that haven’t been started yet.
  • No grant covers your expenses in 100%.
  • Most grants are pointed toward specific fields of the business and sometimes finding one that matches your can be tough.
  1. What authorities offer small business grants in UK?

Except the national Government, you can search for financial support from the Government of the European Union; local authorities, Regional Development Agencies, Chambers of Commerce and many others.

  1. What criteria are important when you apply for government grants?
  • Location – government often sresses on the development of certain geographical areas; is your business in the right place?
  • Business classification – usually there are forms of business that are promoted with grants: partnerships, limited companies, sole traders, etc. What is your company?
  • Industry type – many grants focus on specific sectors and industries; search for the ones that match your industry. Search for information for such grants in specific newspapers, magazines or from people who operate in the same area as you.
  • Grant purpose – depending on the project you can find wide range of financing opportunities. Develop your aim with some ecological or social benefits and your project will get better acceptance.
  • Business size – what matters here are your incomes, how many employees you have and what scale and legal form has your business.
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