Are Government Grants Benefiting Small Businesses In Canada?
With nearly half of Canadian citizens benefiting in one way or other from small businesses, the number of SMEs launched annually and their success rates are no doubt of great significance to Canada. The SMEs are vital economic drivers, and therefore demand special attention from government and the relevant authorities to continue creating jobs, developing local communities, and contributing to the national economy.
When it comes to supporting small businesses, governments play a huge role, especially in removing the potential obstacles to starting and operating the businesses. Like many other developed economies, Canada offer a plethora of government grants for small businesses in order to sustain their growth while preparing for other sources of funding. However, not everybody agrees with this notion or approach; in fact, many experts have criticized and questioned whether government grants are benefitting small businesses.
Lack of expertise
Lack of knowledge and internal resources is one of the major reasons that experts believe is limiting small businesses from leveraging existing small business grants Ontario offers. Most SMEs don’t understand how to effectively pitch their projects and aren’t aware of the available Canadian government funding programs, eligibility criteria, proposal requirements or potential nuances for each program.
People favor Tax credits
According to a recent PwC report, the best utilized government programs in Canada remains tax credits. Beyond this, most Canadian small businesses are reluctant to utilize any government funding such as grants, repayable funding, and vouchers.
Despite the criticisms, it is important to note that isn’t all bleak for grant-conscious small businesses startups. Within Canada, the business atmosphere and the available resources still create a favorable environment for startups—with plethora of opportunities to take advantage of government grants and loans. In fact, there are hundreds of startups in Canada that have grown out of business incubators to industry leaders. Innovation has also been seen sprouting in not only obvious regions such as Kitchener-Waterloo but also in unusual areas such as Northumberland, Ontario. What is more, non-profit organizations have sprung up across the country, instilling entrepreneurial spirit among the youths. In fact, if you visit any college or university across Canada, you will find students working in a wide range of startup supported by government grant funding—this is something that never existed.
Although some experts still don’t approve the value of government grants for small businesses, provincial and federal governments continue to do their part to ensure that entrepreneurship remains a successful path for budding business owners as well a highway to greater prosperity and welfare for Canadian citizens. This means that the government is continually looking for ways to make the grant funding process easier and seamless for small businesses. You can find more information at Ontario Centres of Excellence.
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