Grant funding

When starting a business, money is probably the biggest concern. However there are various schemes available which may help. All publicly funded schemes are designed to encourage new and growing businesses to bring wealth and ultimately create jobs.

The government makes available a portion of the taxpayer’s money to help and encourage enterprise. These funds get distributed through a variety of ministries, departments, and agencies on a national and local basis and most businesses are eligible at any one time to apply for a number of different business start up grants and support.

Business start up grants
A cash award usually given for activities such as business planning, corporate identity, marketing, training, employment, export development, recruitment and capital investment projects. With a direct grant most schemes require the company to pay a proportion of the total cost.

Soft loan
A soft loan is a special type of grant where the terms and conditions of repayment are more generous (or softer) than they would be under normal finance circumstances. So, for example, the interest rate may be less, or there may be no interest to repay at all, and the repayment term could also be for a longer period.

Equity finance
With equity finance a capital sum is injected into the business and the provider of the funds takes an equity share of the enterprise and  when the value of the firm increases the stake can then be returned. However, unlike venture capitalists, the expectations and requirements of the providers of public funds are usually less demanding.

Access to resources
Sometimes small firms do not posses the physical resources or facilities they need in order to develop particular projects. There are a number of initiatives that can help overcome these concerns by providing access to publicly owned facilities.