Starting a Small Business in Canada
Starting a small business in Canada is a dream that many people have. It makes a lot of sense to become your own boss, especially when the Canadian government is on your side and is able to provide you small business government funding to help you startup and expand your business.
While many people think the opposite, such as paying taxes is just crazy or that they cannot start a business in this type of economy, the truth is that the Canadian economy is actually growing.
Small business government funding is available for many industries and to help small business owners fund many needs.
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Why does the government provide funding to business owners?
The best way to think about why the government of Canada provides small business funding is to break it down.
What does the government want?
They want more money.
It is simple. The more money the government makes from you and every other Canadian paying taxes, the more money is available to further grow the economy, build schools, pay for public transportation, hospitals, and roads.
In this case, government funding for small business ownership is actually an investment for the government.
A lot of times, the investment is a risk for the government, but thousands of businesses get government funding each year. They invest in business in order to help them startup and grow, simply because if the business succeeds, it will:
- Pay more taxes
- Be able to hire employees who pay taxes
- Provide a return that allows the government to invest more into that business and others like it
What type of small business government funding is available?
Government funding is available for small business owners all across Canada.
Funding comes in many forms, such as:
- Government Grants (most popular and desired type of funding)
- Government Loans
- Tax Breaks and Tax Credits
To learn more about the types of government funding programs you can read this article on exactly that: the types of government funding programs available.
While everyone just wants to get funding, it is not always as easy as filling out an application form and waiting to get the money.
The government funding search and application process is actually a very complicated one if you do not know what you are doing.
That is why a lot of startup entrepreneurs first turn to companies like ours, CanadaStartups.org, to get expert assistance.
What is small business government funding available for?
As a small business owner, starting up costs money.
Depending on the type of business, your location, and the industry you are in, startup costs can be from a few thousand to a few million. It really all depends.
Getting small business government funding in the starting stages or during an expansion is critical.
So what is it available for?
Government funding is available for pretty much all business purposes. Some of the more popular ones include:
- Setting up your small business or expanding
- Consultation and business advice
- Developing a new product or service
- Purchasing and improving equipment
- Purchasing land and leasehold improvements
- Hiring and training staff
- Energy efficiency and the environment
- Starting or expanding export capabilities
- Marketing and advertising
- Improving cash flow
When starting your funding search for government funds, be sure to read the tips below to ensure you do not make the mistakes many small business owners make.
Tips on searching for small business government funding
While government funding is available for the above mentioned purposes, it is important to not only rely on those specific criteria.
If you have a business or are starting a small business in Canada, you may be eligible.
It is always recommended to ask a funding expert for assistance when trying to figure out what may be available for your small business. You can do so via CanadaStartups.org.
Tip #1:
When searching for specific funding needs, be sure to break down your needs accordingly so that you may be able to apply for multiple programs.
Since government funding agencies break down the funding amounts provided based on specific funding needs, not all programs offer funding for all funding needs.
This means that a program that funds only marketing and advertising costs for business owners will not provide you funding to help you hire staff.
Tip #2:
Funding needs are not the only criteria to consider when searching for small business funding.
When looking for funding programs, be sure to look at the three main categories: your location, your industry, and your funding needs.
Certain programs, while they may be available for the funding needs that you have, may not be available for your location or industry.
Be sure to check that out before you start to apply.
Tip #3:
Knowing how to search for small business funding is critical.
If you need funding, learn how to search for funding and how the government categorizes its programs.
For example, if you need funding to buy a new construction truck, most people would think of searching for truck funding, funding to buy a truck, or vehicle funding. This can come up short, and you may be disappointed to find out that there are no construction truck funding programs.
Instead, be sure to look at the greater picture. A truck will fit into the Purchase and Improve Equipment category.