July 13, 2006
US Grants And Low-interest Loans For Women Business Owners
If you're looking for a government grant to start your own business the advice being given is generally wrong. Why?
Because government grants are normally available to not for profit organizations.
There are dubious web sites offering to sell you tips on applying for government grants. Let's set the record straight, Government and foundation grants are almost always limited to nonprofit organizations.
While there are some government grants available to small companies, these companies are normally doing scientific research but not for conventional businesses.
If you're looking for a government grant to start your business then stop!
Instead you should look at alternatives such and small business loan that's underwritten by the government or approaching friends and relatives.
If you are in any doubt about government grant check this government grant article that deals with the topic from a real life example.
David
Small Business Resource
Posted by David at 6:26 PM
June 19, 2005
How Do You Define A Small Company In The USA?
As the US Government consider how to define what constitutes a small company one thing is apparent, the federal definition would have a knock on effect on companies having access to federal grants, loans and contracts.
The aim of changing what constitutes a small company is to prevent
non qualifying companies from accessing Small Business Administration (SBA) loans.
Last year a proposal to define a small campany based on the number of employees was dropped after a storm of criticism because of the fluctuation in payroll.
One participant, William C. Joern, vice president of the International Center for Language Studies Inc. said "my company doesn't favor defining size by number of employees because the payroll fluctuates with the needs of government clients such as the Pentagon, State Department and FBI."
Other speakers expressed that small comanies with revenue less than $500,000 were not able to apply for and secure government comtracts.
Gary M. Jackson, the SBA's assistant administrator for size standards, said based on comments from participants it was difficult to set the a boundary that defines small business that qualify for government contracts.
As the US Federal Government ponders on how to define a small company what are your views? Should a small company be defined based on the number of employees? amount of turnover? net assets? or a combination of these, as exists in the UK?
As the US ponders over an appropriate difinition of a small company Jonathan Cohen, president and chief executive of 20/20 GeneSystems Inc., said the SBA should not change the as small companies that are financed with majority venture-capital are prevented from applying for Small Business Innovation Research (SBIR) grants.
"Changing the rules to let the venture capitalists in could do great harm to biotech industry as money would be diverted away smaller firms that don't have VC support.", Cohen said.
Posted by David at 9:42 AM | Comments (0) | TrackBack
May 18, 2005
Taking the Mystery out of UK Small Business Grants
If you own a UK small business, grants can give you the funding needed to take your business or your ideas to the next step. Why do government agencies and other entities make this type of funding available? Small businesses make up the backbone of economic activity. Those willing to take the risks of small business ownership help to create new jobs and drive global trade. If you own a UK small business, your business can benefit by knowing more about grants.
One thing is certain about UK small business grants; many different types of grants are available, but you’re the one who has to aggressively look for them. To those unfamiliar with grants, be forewarned that the search and application process is long and tedious, but the payoff can be significant.
The UK Small Business Service is a good source for finding out about official government grant programs. You can find out more here www.sbs.gov.uk . Be sure to check out the other links on that site as well. There is a wealth of information available.
Monies obtained from the grants process generally are used by a UK small business to help fund a business-related project such as the creation of a new product that a company wants to bring to market. Before the product can get to market, a business may need additional funding for machinery, materials or special equipment that it will use in production. Grant money typically is not awarded for general business expansion. There are other types of funding available to help with this.
When applying for UK small business grants, keep in mind that those reviewing grant applications want to understand more about the actual product and, to a lesser extent, how the monies will be distributed. Those awarding grants do so with the ultimate goal of keeping the economy growing. If you’re applying for a grant, be sure to highlight how the product you plan to produce will benefit the overall economy. For example, will it generate new jobs? Will it be exported? You do need to show how the equipment you spend grant money on contributes to the project overall, but as a secondary issue.
When applying for UK small business grants remember that competition is stiff. The pool of funding is limited but the number of businesses vying for that funding is not. Do whatever you can (within acceptable limits and without over-projecting) to make your application stand out above the others. And definitely take a look at your business plan and update it accordingly. A business plan is an absolute requirement for any grant application. Also, get your grant application submitted as soon as possible.
Something else to consider when applying for UK small business grants is that your small business has to be able to match the amount of funding awarded by the grant. Many business owners don’t realize this.
The typical maximum amount of grant money distributed per award is 50% or less of the required project amount. By showing you’re able to generate the remaining funding, you’re showing a level of commitment on your behalf to the project’s success. This commitment is crucial for the success of any business venture. Your perseverance will pay off. Good luck!
David
Small Business Resource
Posted by David at 8:57 AM | Comments (0) | TrackBack
April 13, 2005
Why Has Microsoft Teamed Up With EU To Help Small to Medium Size Businesses?
Presented with information concerning Microsoft and the European Union you can't escape the fact that the EU sees Microsoft as a threat to competition in the Euro zone. The headlines don't make good reading for Microsoft since they are either dominated by record fines over abusing of it's monopoly power and pressure to comply with EU laws over the naming of it's Windows XP software, Windows XP Home Edition N. So why then is Microsoft teaming up with the EU to help small and medium-size enterprises gain access to IT grants?
If you're a small business owner you're probably turned off by the mention of Microsoft's name, infact you probably couldn't care less whether Microsoft was fined $613 million by the EU. So instead of boring you I'll attempt to cheer you up with some good news about Microsoft for a change.
Microsoft, Hewlett Packard and Intel have teamed up with the EU to help small and medium-sized companies to take advantage of IT grants. These technology giants will promote the EU Grant Advisor (EUGA) project, that'll guide small businesses on technology spending. Small businesses can access a dedicated web site offering advice on grant funding of €118 billion including independent consulting services.
The scheme has come about because research by the EU reveals 55% of small businesses in the EU are unaware that they can obtain small business grant for developing IT systems.
Jacques Santer, former European Commission president, said: "the EUGA consortium is a natural step to fuel growth in the EU. The small to medium size company union has always believed that structural funding would kick-start growth in the sector."
The small business team at Microsoft believes the project can help start-up companies overcome fatal hurdles.
Hence Microsoft, Hewlett Packard and Intel believe they can provide advice to SMEs and help them access EU grants. Microsoft's Jean-Phillip Courtois believes that with Hewlett-Packard and Intel they can help small businesses overcome the finance obstacle.
The EUGA scheme has being running in Hungary, the Czech Republic, France, Spain and Poland and will roll out to other EU countries. Company spokesman Fernando Campos, said Microsoft has developed a database for SMEs with 7,000 unique funding opportunities, most of which are unknown to small businesses.
Despite the good intentions of these giant technology companies it's difficult to see how they can turnaround the poor success rate experienced by small companies applying to the EU for IT grants. Statistics show that only 4% of SMEs have applied for one of the initiatives and success rate of those that applied is only 25%.
One of the benefits cited by proponents of the scheme is the fact that grant application time will reduce tenfold by using consultants, while improving small business understanding of the grant specification, resulting in more applications.
Small business owners are naturally asking the question what's in it for Microsoft, Hewlett Packard and Intel. The benefits for them are that they'll have a massive customer base to market their software and hardware products. Microsoft says they are happy to help commerce partners and small business groups gain access to IT grants. The technology giants have pledge that the EUGA does not seek to impose own brands on small companies.
stay tuned for update on the EUGA roll out of the project in the UK.
David
Small business resource
Posted by David at 9:07 AM | Comments (0) | TrackBack
April 6, 2005
Why UK Small Business Innovation Research Programme Want To Copy USA System
Prior to the dissolution of Parliament MPs were in the process of introducing a private member's bill to set up a version o the US small Business Innovation Research Programme. Now that Parliament is about to be dissolved it's very unlikely that the bill will be presented.
The bill is now likely to be introduced after the election and addresses the "gaping hole" in the UK between laboratory research and commercialization where the US has long had a better system for dealing with this.
It's a problem for high-tech start-ups because of the high workload associated with establishing the initial proof of concept, developing a prototype while reducing costs to realistic levels while perfecting the technology.
Assisted funding is required for customers interested in the technology being developed to create a test bed relationship to further development and to give credibility.
The US experience has shown that assisted funding or soft funding to customers is necessary to create interest on their part. Moreover, the customer with the strongest motivation and ability to influence is often the Government itself.
An example where this system has worked is the development of the fuel cell industry in the US (also in Japan and Germany).
This system could benefit high tech start-ups, as there's a massive lack of funding in this area.
UK Government and Department of Trade Industry and Regions have had a blind spot in this regard. Funding has concentrated on basic research and development while further development is left to a market for which ground breaking technologies does not yet exist.
David
Small Business Resource
Posted by David at 2:45 PM | Comments (0) | TrackBack
February 24, 2005
Small-Firms Loan Guarantee Scheme
The Small-Business Service (SBS) Small-Firms Loan Guarantee Scheme
can be used by entrepreneurs with a sound business idea but who
cannot arrange a loan because of a lack of security.
If a bank (that is involved with the scheme) thinks your idea is
viable but you don't have sufficient security for them to finance it,
they can forward your proposal to the SBS for consideration under
this scheme. If it is approved, 75% of the loan will be guaranteed
by the SBS, with the other 25% being unsecured against whatever you
have to offer.
Most small businesses qualify, including retailing and catering,
hairdressing and beauty salons, estate agents, motor-vehicle repair
and servicing and travel agents. The maximum turnover level for non-
manufacturing businesses is £3 million. This goes up to £5 million
if you're a manufacturer.
Loans are available for sums from £5,000 to £100,000 for start-ups
and up to £250,000 if you've been trading for two years or more. Loans
run from a two-year to a 10-year period. Note that borrowers pay a
premium to use this service, and it is set at 2% per year on the
outstanding balance of the loan.
To find out more, phone the Small Firms Loan Guarantee Unit (0114
259 7308).To make an application under the scheme, go direct to
one of the lenders involved with the scheme. These include Bank of
Ireland (Northern Ireland Only), Bank of Scotland, Barclays Bank,
Clydesdale Bank, Co-operative Bank, Doncaster Business Advice Centre,
emerging Business Trust limited, First Trust Bank/Allied Irish Banks,
HSBC Bank, Lloyds TSB, National Westminster Bank, Northern Bank,
Northern Enterprise Limited, Northern Venture managers Ltd,
one London Ltd, Royal Bank of Scotland, State Securities Plc,
UK Steel Enterprise, Ulster Bank, Venture Finance Plc, Yorkshire
Bank, Yorkshire Enterprise Ltd.
Note that this list is subject to change, although big lenders should
remain involved on a long-term basis.
David
Small Business Resource
Posted by David at 12:07 PM | Comments (0) | TrackBack
February 23, 2005
Grants And Other Schemes For Start-Ups And Small Businesses
It's not a coincidence that the most searched terms by visitors
to Small Business Resource’s web site are "small business grant"
and "government grant."
The most successful entrepreneurs are always looking for new ways to build and develop their businesses. But moving into bigger premise, taking on new employees, training staff in different skills, and developing into other markets can be very expensive.
The start-up costs are often high enough to prevent many entrepreneurs from pursuing their goals. Yet financial assistance is often available for many start-up and other small companies.
There are various local, regional and national grant schemes that can be accessed by entrepreneurs, whether they are starting up or looking to expand. There are also several overseas-related grants and schemes that are available:
. Small-Firms Loan Guarantee Scheme
. Enterprise Grants
. Regional Selective Assistance
. Modern Apprenticeship Programme
. New Deal For Employers
. Partnership-at-Work Fund
. Grants for investigating Innovative Ideas
. Export Marketing Research
. Eureka
. New Products from Britain
This is the first of ten reports on the main grants and schemes that are most likely to be of interest to all entrepreneurs, regardless of their location, business activities and plans.
There are literally 100s of different grants and schemes available though - some for specific sectors, others in particular locations, and some for particular activities. I'll give you contact details for finding out more about the other, more specific grants and schemes that might be on offer to you.
David
Small Business Resource
Posted by David at 10:19 AM | Comments (0) | TrackBack
February 8, 2005
Millions of Pounds’ Worth of Grants Left Unclaimed Every Year
Huge amounts of money in potential grant funding for UK small business are not being taken up – according to a Federation of Small Business survey only 7% of small businesses were taking advantage of the financial help on offer.
In addition, recent studies have suggested only a small percentage of support and finance, allocated by the DTI was finding its way to those who needed it.
The main reason for the problem was a lack of awareness and time to research the difficult grant jungle. To help combat the problem Abbey National Business has started offering advice on its web site: grant advice
Help with grants is available to both customers and non-customers alike and highlights who’s eligible, which grants are suitable and how to go about applying.
David
Small Business Resource
Posted by David at 12:29 PM | Comments (0) | TrackBack
