Government Incentives for Entrepreneurship: A New Twist on an Old Puzzle? In recent years, there’s been an exponential increase in the number of government agencies providing financial incentives for entrepreneurship. In the past decade alone, the number of government agencies offering various incentives to businesses, both private and public, has risen by as much as twenty-five percent. In fact, according to a recent report released by the National Foundation for Credit Counseling (NFCC), financial incentive programs have become an important tool in the fight against poverty in America.
The first group of financial incentives offered to businesses is that of grants. Government Grants is essentially cash awards given to start-up businesses to help them develop and expand into their full potential. In the past, grants were issued based solely upon the need, but this is no longer the case. As of this writing, the US government has awarded more than twenty billion dollars in grants to various organizations over the past ten years. This money was provided either as direct funding or in the form of loans and other types of financial assistance.
While grant-based incentives are often provided to businesses to help them obtain financing, government loans can also be used for small business growth. A loan is simply a grant that is provided to a business for the purpose of expanding and growing the business. In some cases, a loan may be provided in exchange for a tax credit. It is imperative for any business looking to obtain financing for business growth to research all options available to it.
Government financial incentives for entrepreneurs also exist in the form of grants for intermediates. Intermediates are any entity that provides funding for an entrepreneur’s ventures. Often times, intermediates will be individuals, such as non-profit groups or large companies who provide funding on behalf of organizations that specialize in the provision of business funding. Government Financial Incentive Programs is another source of business financing, and the amount of money provided is determined by the state the business resides in.
Government funding also exists through various regulatory agencies that regulate the operations of small businesses in various areas. These government agencies often provide financial assistance to small businesses through various programs that promote job creation, innovation, business formation and other activities. Among the many programs offered by these government agencies include:
If you’re not familiar with any of the above mentioned programs, you should do your research before choosing one. These types of government assistance programs require entrepreneurs to fill out a specific application and submit it to the appropriate government agency. If you choose the wrong one, you may find yourself disappointed with the results.
There are also many types of grants available that involve very important decisions about business funding. One type of grant involves using a loan to repay grant monies that are used for startup expenses. This includes taxes, operating expenses, interest and other business expenses. If you’re considering applying for one of these types of grants, make sure to choose one that is specifically designed for your business. Remember to look at all available options carefully before deciding on a grant.
If you’re seeking business funding, consider using grant proposals as a source of information. Grants can be obtained by simply filling out a standard grant request.
Federal government grants are awarded based upon various criteria. The amount of money you need to raise will play a big role in the size of the government grants you’ll qualify for. Typically, business needs are considered, along with the type of business and what the company does.
Federal government agencies also have many forms to help entrepreneurs and small businesses establish themselves. These forms are usually free for those who are looking to raise capital for the business. Most business owners will find that the majority of their work is done when they begin to research the types of loans and grants available from the government.
It is essential that entrepreneurs explore all sources for funding in order to ensure that they receive the money they need to open a new business. You can make a difference by learning more about government business loans.