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A lot of startups all over
the world experience the difficulty of acquiring capital to start or capacitate
their businesses. A government funded grant may be just thing that a business
needs, and entrepreneurs should consider getting government grant in order to
acquire the funds that they need.
Some government institutions
offer grants for the purpose of actively encouraging startup up businesses.
These institutions are involved in searching for new incorporators, more
specifically, they are looking for businesses that will affect the economy in a
positive manner and create more jobs.
While some grants are
designed in order to grow an entire industry such as the vehicle manufacturing
sector. Grants such as the automotive grants are targeted at light vehicle
manufacturers who produce around 60,000 units annually in each of their plants.
This is often calculated within a three-year period.
Other government grants are
in the form of non-repayable grants These are usually established to ensure a corporation
is both competitive, has an edge and is sustainable. These types of grants are
usually used to grow existing businesses for example: employ additional staff.
These types of grants however are not meant to help start-up companies.
Just like there are grants
aimed at the automotive industry, so too you have grants that are aimed at the
clothing and textiles industry. These types of grants are for competitiveness
Improvement.
The aim of this type of grant
is usually to ensure that the employment rate of a company remains stable and
consistent, ensure that a company keeps improving its competitive edge within
the clothing, textile, footwear, leather and leather goods manufacturing
industries.
Funding Institutions will
also grant entrepreneurs with funding for a business’s critical infrastructure.
Usually a critical
infrastructure grant is a cost sharing grant for endeavors that have
specifically designed upscale a company’s critical infrastructure. These types
of funding grants offer as grant a portion for the cost of developing the
required infrastructure.
Grants such as this are used
for lowering the costs and risks of the business in effort to increase
competitiveness, provide financial support which is targeted at acquiring
physical infrastructure, promote upstream and downstream linkages.
Furthermore, these types of
business grants are given to local and national municipalities, qualifying
private investors and established companies
Government Grants are also
available for the film industry, these are usually in the form of an incentive
programme.
Funding in the form of a
grant from the Government offers a variety of incentives for the company in an
effort to promote the film and television industry.
These incentives are made of
foreign film and television production companies who want to produce and
post-produce on location.
Countries want to attract
overseas-based film production houses to come and shoot on location in their
countries, including conducting post-production activities in those countries
as well as providing and co-producing their productions in the country.
Government funding and grants
that are focused on business-process-services are also offered by agencies and
are created with the intention of attracting investments that are gunned at
creating employment opportunities to beneficiaries through the offshore
activities of a company. While these types of grants work well, they also carry
with them a secondary objective, which is to stimulate an environment the produces
more opportunities for youth to get employed so that they can contribute
towards the growth of revenue created by exporting their services.
In order to be able to
qualify for this type of business grant, you company must; be already
operational in the business-process-services space, you company is busy
launching a new operation or expanding an already existing operation for the
purposes of business-process-service activities, your company must within a set
period (usually by the end of 3 – 5 years
from the day of inception of the new project or expansion) have
employed a minimum of a set number of
employees (usually around~50) in new overseas jobs, the company will commence
with its commercialized operations at a date no later than six months from the
day on which the grants were issued and if the company is in a joint venture
arrangement, it must have at least one of the parties registered in the country
it is seeking a grant from as a legal entity, the company must comply with
government policies for seeking funding, company must comply with all statutory
regulations
There are many other
different types of government grants such as cost-sharing business grants,
grants that support the development of new technology, grants targeted at youth
entrepreneurs in order to provide an opportunity to access financial and
non-financial business development support and grants can also be issued to specific
groups within the populace of a country or region.
It is therefore important for
any business considering a grant as means for funding to do their homework.
Every country works differently and businesses must ensure to comply with laws
of the country that are operating in.
Governments often offer
various different types of funding vehicles that serve different types of
business needs. In this article we took you through some of the government
grants available and how they work.
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Government grants facilitate the funding of ideas and endeavors providing public services and stimulating the economy. Grants support critical recovery initiatives, innovative research and other programs.
grants are funded by tax monies and require stringent compliance and reporting measures for ensuring the money is well-spent.
