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 – “paying taxes is just crazy”, and “I can’t 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.

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’s 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, make roads..etc

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 to grow, simply because if the business succeeds; it will 1) pay more taxes, 2) be able to hire employees (who pay taxes) and 3) it will make them receive more of a return  and allow them 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/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’s not always just as easy as filling out an application form and waiting to get the money.

The government funding search/application process is actually a very complicated one (if you don’t know what you’re doing).

That’s why a lot of startup entrepreneurs first turn to companies like ours – CanadaStartups.org – to get the 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
• To start or expand export capabilities
• Marketing and advertising
• To improve cash flow

When starting your funding search for government funds be sure to read the tips below to ensure you don’t 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 funding purposes, it’s 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 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..etc

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 3 main categories: your location, your industry and then 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 it’s programs.

For example if you need funding to be able to buy a new construction truck; most people would think that searching for “truck funding”, “funding to buy a truck”, “vehicle funding”; but this would/could come up short. Quickly you may be disappointed to find out that there are no “construction truck funding programs”.

So instead be sure to look at the greater picture. A truck will fit into the “Purchase & Improve Equipment” category.