How to Utilise Government Grants to Expand Your New Business
How to Utilise Government Grants to Expand Your New Business
Across our nation, the Australian Government supports small and new businesses in their enterprises with grants to help them get off the ground and succeed in what is already a tough market.
Krishan Sharma and the team of business advisors at KNS Accountants have seen how other countries are enviable of these grants, but they have also experienced how much the boost is needed to bolster businesses with Australia’s failure rate at 20% in the first year.
“The type of support from the government is well received by those just starting out, but the process is slow,” explains Krishan. “We have seen that you need to be committed to the long game because the process requires a lot of input, and the results are unpredictable."
While Sharma recognises that many businesses have the capital and nouse to succeed in their new venture, he and his team at KNS know the positive impact financial and business grants can have on those starting out on their journey.
Okay, So What Is a Business Grant?
"There are more than 2.3 million small businesses in Australia, and many of them have been hurt by the global pandemic," notes Krishan. “We have all seen many local small and medium-sized enterprises suffering over the last couple of years, and we found ourselves encouraging clients to make good use of these unique offerings to give them the right start towards success.”
To be eligible for a government business grant, you must be a start-up or entrepreneur with a home, small or medium-sized enterprise. These rules are put in place by the state and the federal government and are usually specific to a project, rather than general purposes.
"These don't always involve a cash infusion, but can also include expert advice, training, research and development, and growth opportunities.”
With this in mind, KNS encourages their clients to do their research and choose an option that best suits their needs and furthers business development.
Government-Supported Programs
It’s important to note that the type of grant assistance available to you will vary across state and territory governments for setting up and running a business. There aren’t options available to all business types, and certain requirements must be met, including reporting and occasionally audits.
Grant 1: The Entrepreneur’s Program
Founded in 2014, The Entrepreneur’s Programme is undoubtedly the most popular. “We find that many clients are drawn to this grant because it connects mentors with new business owners and developers to help with the innovation and commercialisation of their products and services,” says Sharma.
Compared to other alternatives, the KNS team see clients most attracted to this type of funding because it can provide up to 50% of expenses up to $1 million.
Grant 2: Australian Apprenticeships Incentives Program
Sharma sees great value in this grant initiative because of how it encourages businesses to hire new apprentices and give them the training they need to develop into qualified professionals. “The young apprentice not only gains from this opportunity, but so does the small business that hires and trains them, along with the educational institute their apprentice is studying with."
Grant 3: Research and Development Tax Incentive
“This is more of a tax incentive than a grant but is valuable to businesses investing in research and development projects.”
Sharma has seen how this initiative can reduce corporate taxes, which is fantastic news for the entrepreneur and an advantage for business start-ups, especially considering that even at a loss, these new businesses can receive a tax credit.
Grant 4: Tourism Industry Regional Development Fund
As we see more states opening up, the time is now to find out the benefits of the Tourism Industry Regional Development Fund. This fund is managed by each Australian state and has varying requirements for eligibility.
Overall, it is a regional Australian initiative to improve tourism where funding can range from anywhere between $50,000 to $250,000. Check each state and territory's government websites for specific eligibility.
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The Future of Small Business
The best way to utilise government grants to benefit longevity in your new business is to ensure you apply for those that best meet your needs. “It’s easy to get caught up in applying for this or that, but when you make the right connections and put your whole self into relevant applications, you have a better chance of achieving outcomes that will benefit you most,” says Sharma.
Looking ahead for small to medium businesses, there is a lot to be gained from engaging in opportunities that are designed for business growth and development. Sharma says that while he believes that new enterprises will be slow to start as a result of the pandemic, getting market-ready is definitely easier with the added support of mentors and grants.
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