Entrepreneurship is an exciting career path that can lead to success and fulfillment. However, pursuing the life of an entrepreneur isn’t always clear as there’s no single right way to approach this goal, even for business and finance majors.
Despite this, there are some key practices that people can take advantage of to make their transition into entrepreneurship smoother. For business majors ready to tackle their first business ventures, grants are an incredibly valuable resource. Understanding the types of grants available for entrepreneurial pursuits is immensely valuable for anyone looking to make their mark as a business founder and operator.
Here are grants for business majors interested in entrepreneurship.
Government Grants
When it comes to obtaining small business grants, government resources should be every entrepreneur’s first stop. Apart from being a relatively approachable resource, government small business grants are typically plentiful, even for students returning to education. This can make it easier to land at least some capital that can help with start-up and operational costs.
The reason that there are many government grants has to do with the fact that each level of government has its own offerings for small business entrepreneurs. As such, business majors looking for ways to fund their entrepreneurial ideas can typically find some key resources in government grants.
To get a better understanding of the types of grants one should be pursuing, it can help to gain a rough idea of what types of grants are available. Different levels of government that offer small business grants include:
- Federal grants: Federal grants are typically available to entrepreneurs anywhere in the country. Sometimes, these grants are awarded to other government agencies, such as at the state level, to be awarded to individual businesses. Other times, federal small business grants can be awarded to specific businesses that apply.
- State grants: State grants are grants awarded to small business owners in specific states by the state government where they intend to operate their businesses. Oftentimes, states will seek out start-up businesses that are part of an industry they wish to bolster in their state. As such, depending on the type of start-up one is building, it can be valuable to research which states are the most likely to award that type of organization a small business grant.
- Grants at the local level: Local grants are awarded to small businesses by cities, towns, and counties. Oftentimes, the intention behind these grants is to help communities flourish. As a result, local governments will typically support businesses that can improve some specific aspects of their communities.
While there is no one specific government grant that business majors should seek out when branching out into entrepreneurship, understanding these resources can be incredibly valuable. Rather than having to raise funds from investors or take out loans, receiving government grants can help many small businesses begin, flourish, and succeed.
Corporate Grants
Though many aren’t aware, a significant number of corporations offer small businesses grants. Typically, corporations will have a specific reason for offering certain types of grants, such as wanting to spur more innovation in their business sector.
One key reason that many corporations will offer grants is to gain publicity. In these cases, corporations will publicize their offerings, oftentimes holding contests that the public can observe and participate in.
A small business’s ability to obtain a corporate grant will depend on a number of factors including luck. For this reason, these types of grants shouldn’t be the only ones that small business entrepreneurs apply to unless their specific business is a good fit for a particular grant.
Grants for Specific Types of Businesses
These types of grants can come from a range of organizations including government organizations, corporations, and non-profits. The aim of these grants is usually to improve a certain sector of business. In some cases, this means incentivizing small businesses in a particular sector to open a business in a specific area by offering sizable grants.
Depending on the type of business one has, these small business grants can be incredibly helpful, especially during the start-up phase. Consequently, any entrepreneur can benefit from seeking out industry-specific grants to aid them in their pursuits.
Grants for Specific Populations and Demographics
For many people who come from specific demographics, it can be harder to become an entrepreneur and create a small business. As a result, many organizations have created funds to help specific types of people pursue their entrepreneurial goals.
Some common entrepreneur demographics that have grants available include female entrepreneurs, entrepreneurs from minority backgrounds, and differently abled entrepreneurs. However, while these are some common demographics, there are many different types of targeted grants out there for a range of people. As such, business majors looking to become entrepreneurs should explore these options whenever possible.
Why Grants Are an Incredible Financing Option for Small Businesses
Small business entrepreneurship can be an incredibly rewarding path for those who choose to blaze their own trail. Unfortunately, the path typically comes with its fair share of challenges as well. One of the main obstacles that small business entrepreneurs face is covering start-up costs.
While a few small businesses are lucky enough to become profitable relatively quickly, most take a significant amount of time to start making a profit. This being the case, the vast majority of small business start-ups need a significant amount of capital to hold them over for a period of time.
Loans can be an effective resource for entrepreneurs looking to start small businesses. However, paying back these loans can be difficult while trying to get a business off of the ground — especially for first-time business owners.
Thankfully, grants can be the windfall that entrepreneurs need in order to find success. Instead of having to pay back loans and the interest they accrue, small business grants allow entrepreneurs to receive valuable monetary assistance to help their dreams come true.
For business majors interested in exploring a career as an entrepreneur, obtaining small business grants can play a key role in making it possible. This being the case, all business majors interested in founding their own venture should explore all the small business grants available to them.
Small Business Grants Make Entrepreneurship Easier
Though many entrepreneurs dream of securing huge amounts of capital from investors, this is far from the only, or easiest, option. Small business grants can provide entrepreneurs, especially those just graduating with a business degree, with powerful opportunities to start and grow a business. While the process of obtaining small business grants may seem overwhelming at first, it is more than possible for any entrepreneur with the right mindset and a commitment to succeed.
