Small businesses are privately owned firms, partnerships, or sole owners that have lesser number of employees and/or lower sales volume than an average-sized firm or corporation. Small businesses are defined as such in terms of having the ability to apply for certain government assistance and/or qualify for preferred tax treatment varies according to the country and industry where they are established. It is not surprising therefore that the government has created various programs in which small businesses can avail of assistance. Among these are:
Many small businesses, particularly start-ups, are not able to overcome the financial challenges that they encounter as they struggle to establish themselves. This is the reason why there are grants available from the government for small business owners who are starting or want to expand their enterprise. There are many private foundations and businesses that are able to provide start-up grants for aspiring entrepreneurs. As a result, there are also many small businesses that survive the difficulties of the fledgling stage and eventually flourish into successful enterprises that compete favorably with large corporations.
Another advantage of having a grant from the government is that the applicant’s personal credit scores do not decline when applying for these grants. This is not the case with most private financing options as these companies usually demand a high credit score from their clients. In contrast, the grant system allows small businesses to focus more on building their reputations and increasing their market share rather than focusing on improving their credit scores.
Grant programs aimed at helping small businesses succeed have a diverse set of programs and features. For starters, some of them specifically target businesses in regions or cities where unemployment is above 10%. These target small businesses with low local economies and thus offer grant funding that is much more flexible and favorable. These local businesses tend to have lower local taxes and attract more consumers and employees, which result in higher revenues for local businesses. The businesses then use these funds to either expand their operation and hire more employees or simply provide product and service improvements.
Small businesses can also apply to receive grant funds that will cover their advertising costs. There are many grant programs that cover advertising costs and some even have funding to pay for web development. The grantor often requires a marketing mix consisting of proven SEO techniques and social media strategies. These techniques are essential to attracting new customers and enhancing productivity by allowing workers to spend more time on actual tasks rather than surfing the web. Good SEO techniques can improve employee engagement and improve the bottom line of local businesses.
A relatively new type of grant program called SMART grants targets start-up businesses. SMART grants were created to help solve some of the pressing issues that many small businesses face in today’s market. These programs focus heavily on start-up entrepreneurs who face a variety of technical challenges. In addition to providing seed money, grants of this type may also require a marketing mix of products and services that are targeted to a unique niche market. Many small businesses that use SMART grants find that they can significantly reduce their financial obligations through the use of these programs.
Entrepreneurs that wish to capitalize on the self-employment model also have options. However, because many small business owners rely heavily on social media and other Internet marketing techniques, the social and Internet marketing niche has become quite competitive. For this reason, many entrepreneurs shy away from self-employment because they believe it is impossible to achieve significant profits in this way without relying on traditional advertising and marketing techniques. However, the self-employed can achieve success with self-employment by considering SMART grants as an effective alternative to traditional business models.
By implementing several different strategies, small businesses can effectively self-exist within the confines of the current economic landscape. As new business opportunities arise, entrepreneurs will continue to utilize the various grant programs that are currently available. In the end, self-employment offers entrepreneurs a chance to reach their full entrepreneurial potential. Now that you know a few ways in which to tap into these programs, begin researching your options today.