Grants for small business development. How to get a government grant for small business? What contributes to obtaining a positive decision

Alexander Kaptsov

Reading time: 8 minutes

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Government subsidies are one of the most effective ways to obtain funds to create your own business. In this case, start-up capital or part of it can be obtained free of charge and with a minimum amount of effort. What options for financial assistance are available to start-up entrepreneurs in Russia in 2019 and how to get them?

What does a government subsidy for small businesses mean? Types of subsidies

A state subsidy should be understood as targeted financial support from the state or local budget, which is free of charge.
Why is the state ready to provide its funds to budding entrepreneurs on a non-refundable basis?

There are several reasons for this:

• Firstly , new firms will produce goods and services needed by society.
• Secondly , they will actively compete with existing companies in the market, which will help improve quality and reduce prices.
• Third , new enterprises contribute to the growth of the country's GDP and its socio-economic development.

Subsidies are allocated only to those entrepreneurs who are able to adequately justify the purpose of using the funds, in particular:

1. Purchase of equipment and consumables.
2. Purchase of raw materials.
3. Receiving ownership of intangible assets, etc.

If the funds were raised for one event, but were spent in a different way, the entrepreneur will be forced to return the funds and will be held accountable. That is why exactly one year after receiving the subsidy, the businessman will have to draw up and submit to the government agency a detailed report on the use of the allocated funds.

Important point: If a company plans to open in the production, sale of tobacco or alcohol products, construction and sale of real estate, equipment rental, then it makes no sense to count on government subsidies - these industries are not financed from the budget.

If we talk about the types of subsidies, then in Russia we should clearly distinguish between:

• Subsidies for starting a business , which are issued to the unemployed, the disabled and the only parent of a minor child.
• Subsidies for the creation of companies for all other categories of citizens , which increase as the number of additional jobs created by the entrepreneur increases.
• Subsidies to support existing businesses , which are provided on a competitive basis.

Important point: In Russian practice, government subsidies are allocated not by state, but by local authorities. That is why an application for the right to raise funds must be sent to a commission specially created at the regional level.

Where to go to apply for government subsidies for small businesses?

Not all aspiring entrepreneurs who want to receive government subsidies are aware of this. Where exactly should they apply for this financial assistance option?

In Russia, several government agencies are involved in issuing funds for the creation of new companies.

Where can you go for a list of required documents and an approximate form of a business plan:

1. Employment Center, including its regional offices.
2. Department of Entrepreneurship.
3. Local administrations operating at the level of individual regions.

Important point: If the project turns out to be socially or economically significant for the region, then through the above authorities you can receive not only financial assistance in the form of a subsidy, but also free internships, the right to participate in exhibitions, outsourcing at the expense of the state, etc.

What documents are required to receive subsidies for small businesses from the state?

Government subsidies have existed for a long time and have a unified procedure for evaluating participants.

That is why the list of documents that an entrepreneur will need to submit is publicly available and includes the following items:

1. Passport and TIN of the entrepreneur himself.
2. His SNILS (insurance certificate-card).
3. Education document.
4. A certificate from the accounting department of his last place of official employment, including information on salary for three months before dismissal.
5. Application from a participant in a program to receive assistance from the state (according to the approved form).
6. A business plan with a detailed description of the essence of the project, its income and expenses, as well as an indication of its payback period.

Important point: Only those entrepreneurs who are registered as unemployed citizens at the Employment Center have the right to count on government subsidies.

If, after reviewing the package of documents, the commission makes a positive decision, then an agreement is concluded between the entrepreneur and the Employment Center, and the funds are transferred to the applicant’s bank account.

Important point: When allocating a government subsidy, it is assumed that the entrepreneur himself must make some contribution to the new business. At the same time, the latter does not have to provide the amount of funds - he can provide his own building, car, equipment, etc. for the business.

How to get a government subsidy for a small business: instructions and conditions for receiving

What steps will need to be taken by a new businessman who is seeking to receive government subsidies?

First, you should register with the Employment Center and obtain unemployed status, after which:

• Firstly , choose the industry in which he plans to work.
• Secondly , draw up a detailed and justified business plan, in the summary of which it is advisable to indicate the economic and social significance of the activities of the new company for a particular region.
• Third , register the business as an individual entrepreneur.
• Fourth , contact one of the government bodies listed above with a package of documents, an application and a business plan.

The commission reviews the documents within 60 days, after which it makes its decision .

As a rule, the entrepreneur is notified about it by registered mail.

The amount of state subsidies for small businesses in 2019 in the Russian Federation

Currently, the system of state subsidies for small businesses in Russia has become very convenient and accessible to a wide range of citizens of the country. What is the size of the government subsidy in 2019?

It all depends on the type of government financial assistance:

1. If funds are allocated to an unemployed person, a disabled person, or the only parent of a child to start a business, then the funding can amount to up to 300,000 rubles.
2. If capital is attracted by other categories of citizens, then the basic amount will be 60,000 rubles with the possibility of additional payment for the creation of a large number of additional jobs.
3. If money is needed to support an existing business, then, as a rule, no more than 25,000 rubles are allocated.

Important point: Even if a business is opened as a franchise, government subsidies are still allocated to entrepreneurs.

Reasons for refusal of government assistance

Why do some entrepreneurs who apply for government subsidies end up with nothing?

There are a number of main reasons for refusal of financing:

1. Choosing the wrong field of activity . Thus, there are industries that the state does not finance (tobacco and alcohol production, banking and insurance business, etc.), and at the same time, “win-win” options for receiving state subsidies (education, tourism, medicine, etc.).
2. Too much funding . When submitting an application, it is important to take into account the maximum amount of subsidies that the state can provide.
3. Wrong . If the project does not reflect income and costs in sufficient detail, there is a long payback period and the economic and social significance of the project is not obvious, then the money will most likely not be given.
4. Lack of a clearly defined goal . If the business plan does not specify where exactly the entrepreneur is going to spend the amount requested from the state, then the subsidy may be refused due to the impossibility of controlling the use of funds.
5. Re-application . If an entrepreneur has already received a subsidy to open a company before, then when applying again, the probability of refusal is more than 80%.

Where can government subsidies for small businesses be spent?

Since in the business plan the entrepreneur prescribes the goal of attracting government subsidies, the first condition for using the funds is spending strictly for their intended purpose.

There are several areas where state subsidy funds can be distributed, in particular:

• Purchase of equipment (all purchased machines and devices cannot be sold or transferred to a third party for three years).
• Rent of premises (no more than 20% of the allocated amount can be used for these needs).
• Acquisition of software, patents and licenses.
• Purchase of raw materials and supplies (again, no more than 20% of the allocated capital).

At the end of the year, the entrepreneur will have to draw up a detailed report on where exactly the funds allocated by the state were sent.

The main direction of the economic policy of the Russian Federation is considered. The active position of the state in this area is due to several reasons - national production, a significant increase in taxes to the state budget, and the creation of new jobs. All this has a positive effect on the growth and development of the domestic economy, reducing unemployment and increasing the income of citizens.

A subsidy to support small businesses in 2019 was recognized as the most effective, productive method of obtaining funds to start a business. This program allows you to receive start-up capital or part of it on a non-refundable basis.

Grants to support small businesses

The activity of an entrepreneur is quite complex and responsible; every day you have to solve many non-standard issues and tasks. In no case should you neglect attracting new, active sources of cash injections.

If you can’t solve basic issues with your own efforts, no subsidies will help you achieve success. It is important that the business is viable without outside cash injections. As for the grant, this is an excellent opportunity to significantly accelerate its development and achieve the desired result within a few months.

A grant is financial resources or equipment that are allocated free of charge, but with a report on their use. The main difference from a subsidy is the mechanism for receiving it and the amount of assistance. The subsidy is issued in the form of a single payment to the individual entrepreneur’s account, and the grant is paid in tranches and installments, as they are used, an accurate report of expenditure must be provided. Some funds do not allocate money, but special equipment, materials, or pay for their purchase directly.

A grant for starting a business from the state in 2019 can be multiple in nature: if the recipient has an excellent reputation and has also shown good results and efficiency after the first tranche. When investments do not perform well, the amount may decrease.

To participate in the competition, you should find out where the nearest Fund is located that provides grants and subsidies for start-up entrepreneurs. After this, you need to find an announcement that notifies you of the start of the competition program. It is advisable to carefully read the requirements and conditions of the competition. Then you should submit the completed application and begin preparation. After the participant registration stage, you need to prepare a presentable and credible business project.

To win a grant, it is important to have commercial qualities and take into account priority areas of the economy. It will be a plus if the project represents a technical novelty. The applicant is required to collect a complete package of documentation that can confirm the benefits of his idea for the entire society. If you want to win the competition, you will have to try a little and prepare a mini-presentation. In simple words, the task of the grant and subsidy recipient is to fully support the project.

Various criteria may apply when selecting program participants. When finance is allocated from a foreign fund, the main indicator will be the intended use of the money in accordance with the stated business plan. It is not surprising that foreign investors provide assistance to those who have already received a grant.

It is more important for the state to ensure social protection of the population and reduce unemployment. Every year, local authorities select priority areas specifically for their region. The state itself is interested in the development of such areas, therefore, it is easier for applicants for grants to receive assistance.

In simple words, foreign sponsors prefer to cooperate with experienced businessmen, and the state helps even newcomers: graduates of higher educational institutions, single mothers, retired military personnel, the disabled, and the unemployed.

If you believe the statistics, thirty percent of individual entrepreneurs who received a grant come from the industry , about 12% - trade, and 20% - . It is much easier to receive gratuitous assistance for the purchase of raw materials and equipment, and rental of premises.

Domestic funds are not eager to allocate money to pay wages, and foreign sponsors calmly approach this issue. The state provides assistance for the development of such sectors as education, agriculture and natural sciences, and manufacturing. As for private funds, they prefer to help business and the economy. To engage in research in the field of society, ecology, culture and democracy, it is advisable to seek help from foreign investors.

Leaders of business projects that received the grant:

• Training courses;
• repair shops;
• design bureau;
• clearing companies;
• marketing agencies.

Most private foundations are founded by famous people, and they are actively replenished thanks to regular contributions from business. These include the following foundations: Ford, Bill Gates, Soros, MacArthur, Rockefeller. If you contact government agencies, the following are the issuers of grants: local governments, the Committee for the Development of Medium and Small Businesses.

How to get a grant for small business development

Before receiving a grant under the state program, you cannot do without taking certain measures:

• provide jobs for a certain number of people;
• take special courses teaching the basics of entrepreneurship;
• provide documents confirming the lack of financial assistance previously;
• register a business in the proposed administrative district;
• provide evidence that there are no debts on taxes and payments to the budget;
• ensure a specific turnover of the enterprise per year;
• meet all stated requirements - age, experience, education.

List of required documentation:

• constituent documentation of a legal entity;
• the corresponding extract from the Unified State Register of Individual Entrepreneurs;
• certificate of registration with the Federal Tax Service;
• confirmation of state registration;
• copies of the above documentation;
• a certificate from the Federal Tax Service on tax sanctions, as well as on the fulfillment of tax obligations and payment of insurance premiums;
• certificate of number of personnel;
• copies of payment orders, contracts confirming financing.

The list of documents must be submitted to the commission in order to verify the accuracy and truthfulness of all information, as well as to make a final verdict. It is important to note that the Federal Tax Service certificate is issued no later than 30 days before submitting an application for a grant.

In addition, you need to find out how to get a subsidy, since the processes are very similar. To do this you will have to contact
An employment center or department that oversees the development of small businesses in the relevant region. It is necessary to prepare a competent and understandable business project. Options for the development of subsequent events:

• approval of the project, the individual entrepreneur can count on assistance in the amount of 58,800 rubles;
• reimbursement of expenses;
• project rejection.

You can try your luck in the special business development department, for which you must present the following documents:

• clear;
• Russian passport;
• application for subsidy;
• constituent documentation for individual entrepreneurs;
• a certificate confirming completion of courses and mastery of business skills;
• certificates from funds, tax authorities, which indicate the absence of debts to them;
• a document indicating that a particular enterprise is not at the stage of liquidation;
• lack of administrative and criminal proceedings.

Specifics of applying for a subsidy in 2019:

1. Providing all documentation to local authorities.
2. Over the course of a week, the project is studied by an expert commission, a final verdict and a written response are issued. If the applicant is rejected, another business project can be submitted within a year.
3. If the decision is positive, the project is transferred to a special service, which selects the best from all participants. There are no deadlines for consideration; the meeting begins as all projects are received.
4. The total amount of financial assistance directly depends on the capabilities of the regional budget. For example, in the Rostov region no more than three hundred thousand rubles are allocated, but in Moscow you can get up to 500 thousand.

Considering modern realities, a grant is not a very tasty morsel. The process of obtaining it is accompanied by a struggle with bureaucracy, difficulties, and problems. In case of winning the competition, an individual entrepreneur is forced to provide detailed, truthful reports on the work done and the funds used. The main advantage of a grant and subsidy is that it is free assistance, which is significantly different from a loan.

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Starting a business requires considerable financial investment. If it is difficult for an entrepreneur to accumulate the required amount of funds, he can resort to help from the state or private individuals. There are special programs to stimulate business development. To participate in them you must meet a number of conditions.

Who can receive grants

Who are the grants available to? This depends on the specific program. However, in most cases this is the following list of persons:

• The entrepreneur is unemployed and is registered with the employment center.
• Entrepreneurs who already have a business, but want to expand it.

The funds provided under the program must be spent on the basis of a previously drawn up business plan.

Foreign grants are usually awarded to individuals who have previously successfully participated in programs. State programs, as a rule, are intended for beginner entrepreneurs. Preference is given to these categories of persons:

• University graduates.
• Professionals who have been laid off.
• Employees who have been laid off.
• Single mothers.
• Persons with disabilities.

That is, grants are provided to the most vulnerable citizens. However, other citizens may also be eligible for the program:

• Persons who already have a business that has been operating for at least a year.
• Persons who are developers of innovative technology.
• People who have entered into a leasing agreement to purchase equipment.
• Entrepreneurs participating in exhibitions and fairs.

If an entrepreneur expects to receive a grant, when starting a business, he can focus on which areas usually receive funding. 30% of grants are provided for business in the service sector. The state usually finances projects in the following areas:

• Agriculture.
• Education and science.
• Production.
• Subjects whose introduction creates new jobs.

Foreign funds prefer these areas:

• Ecology.
• Culture.
• Economy.

FOR YOUR INFORMATION! The more an entrepreneur’s business fits the fund’s preferences, the greater the chance of receiving a grant. Experts believe that educational courses, marketing agencies, auto repair shops and other service providers have the greatest chance of funding.

Procedure for receiving a grant

What do you need to do to receive a grant? You need to go through three steps:

1. Studying the requirements of a specific fund.
2. Submitting an application.
3. Preparation of documents.

Let's look at all these stages in more detail.

Requirements for applicants

Let's consider the requirements that are usually presented to applicants:

• Submitting a properly completed application.
• Protection of a business project.
• Implementation of the project in accordance with previously developed documentation.
• Providing a report for the funds spent.

The grant holder must pay special attention to business project development and reporting. The first will allow you to receive funding, the second will allow you to correctly account for the money provided.

Application review period

The processing time for applications depends on which grant the entrepreneur is applying for. They can vary from a month to a year. You can find out about current grants and deadlines at the Entrepreneurship Development Center or the Ministry of Economic Development.

Documenting

To receive a grant, you need to prepare the following documents:

• Application.
• Entrepreneur's application form and copy of passport.
• Confirmation that the person knows the basics of entrepreneurial activity (for example, a certificate of completion of courses, a diploma of higher education).
• Certificate of registration of individual entrepreneur.
• Document confirming payment of taxes.
• A paper about a person creating jobs.
• A business plan, each point of which is rational and justified.

This is a general list of documents. The Fund may require additional paperwork.

When applying to the fund, you should consider these recommendations:

• Sometimes an entrepreneur is denied financing because the amount indicated in the application is too small. Therefore, it is recommended to overestimate it. When determining the required amount, you need to take into account the size of the commission.
• It should be borne in mind that financing is usually carried out in installments. We need to think about how this or that part of the funds will be spent.
• Even if the entrepreneur wins the competition, it must be taken into account that the funds will actually be issued only after 2-12 months.

To increase your chances of funding, you need to take into account the potential requirements of investors.

How does the commission decide on funding?

A special commission is created to review applications. Its representatives check the submitted documents and business plan. For a plan to be approved, it must meet these characteristics:

• Necessary financial indicators and their rational justification.
• A description that the investment will actually work.
• Presentation of information in such a way that the commission understands the prospects for business development and its profitability.
• Indication of areas of financing.
• An indication that the entrepreneur intends to create jobs. The more jobs it creates, the greater the chance of receiving subsidies. This is due to the fact that the state is fighting unemployment, and therefore provides funds primarily to those entities that will allow the unemployed to find work.

Receiving a grant does not mean that the business will be opened solely with the funds provided. An entrepreneur must also have his own capital. It is desirable that it be approximately 2 times the size of the subsidy.

When an entrepreneur is denied financing

Full compliance with all conditions does not at all guarantee receipt of a subsidy. The commission may refuse for these reasons:

• The entrepreneur had already worked in the specified field of activity, but his experience was negative.
• The person has been found to have misused grant funds in the past.
• An entrepreneur opens a business in an area that is not subject to government funding.

Some areas of business activity are not financed. This is due to the fact that they are not considered socially significant and do not stimulate the economic condition of the region. For example, these are the following subjects:

• Credit organizations, investment funds, pawnshops.
• Organizations dealing with currency.
• Lottery and bookmaker companies.
• A company that produces goods subject to excise taxes.

It makes no sense to demand subsidies for such enterprises.

Where can I get a grant in 2018?

Government subsidies are provided by these entities:

• Small Business Development Committee.
• Economic Development Committee.
• Municipalities.
• Industry committees.
• Department of Entrepreneurship.
• Fund for the promotion of small businesses in the scientific and technical field.

An entrepreneur can also turn to private funds. For example, young startups are financed by Pavel Durov and Yuri Milner. The funds are allocated by the Skolkovo Foundation. It provides from 5 to 150,000,000 rubles for scientific developments in the field of space technology and biomedicine. IT startups are funded by Bill Gates. However, to receive foreign funds you need to meet fairly stringent requirements.

How to get a grant - where to apply + what you need for this + what documents to provide + and what to do with the money received.

Do you have a crazy idea for starting a business and a great desire to work?

But at the same time you don’t have enough money for this?

And you don’t want to get into debt with friends or take out a bank loan?

Then you will find the information very useful: how to get a grant.

It is no secret that many business projects were able to come to fruition thanks to this kind of financial support.

If you also want to get this opportunity, then get ready for the fact that you will have to put in a lot of effort, but the result will be worth it.

What is a grant?

Before talking about how to get a grant, you need to understand the very concept of what it is.

A grant is either in kind, aimed at opening or expanding a business.

An important distinguishing feature of such support is that it does not require repayment, that is, it is free of charge.

Grants for starting or developing a business can be issued by:

• state;
• private foundations;
• foreign organizations.

Based on this, you need to understand that these organizations may have different requirements for receiving a grant.

So don't waste your energy applying everywhere you can.

Choose a source that will suit your field of activity and work to fulfill its conditions.

Where to go to get a grant?

“Half of what separates successful entrepreneurs from unsuccessful ones is persistence.”
Steve Jobs

As mentioned above, there are three main categories of organizations that are willing to provide money or other assets.

But there are nuances here, using which you can understand where you should go first.

You should also understand that those funds that are ready to provide financial support have different goals.

Features of issuing grants by government organizations

1. When issuing grants, state funds give preference to socially vulnerable categories:
   • university graduates,
   • for those who are in the employment center,
   • laid off,
   • retired military,
   • single mothers,
   • disabled people,
   • young professionals under the age of 30-35 years.

The state does not provide the full amount for opening a business.

Preference is given to those entrepreneurs who are willing to invest their own funds.

2. Preference is given to social spheres, as well as production and agriculture.
3. Most often, the state is ready to finance the purchase of equipment or raw materials, but at the same time refuses to cover the costs of paying wages.
4. When issuing a grant for business development, the state pays attention to the period of operation of the enterprise, and it should not exceed 1-2 years, as well as whether the entrepreneur is able to hire additional people.

Features of issuing grants by private and foreign foundations

1. Private and foreign funds are very demanding in reporting, that is, they must see that the money issued will go to cover certain expenses, and not into your “pocket.”
2. Such organizations willingly agree to issue a grant for the payment of wages, unlike the state.

If funds are needed to finance innovations in the economy and business, then domestic private funds most often specialize in this issue.

But you can safely contact foreign ones if you need to open or develop a business related to ecology, art, culture, society, or the IT sector.

3. Such funds practice issuing grants in tranches, that is, money comes gradually for the implementation of certain stages.

Required documents to receive a grant

Each organization for financing and business support requires its own list of documents, but most often they overlap with each other.

So, you may be required to provide the following documents:

• a correctly completed application for participation in the selection for a grant;
• copies of documents confirming your identity, as well as, if necessary, a participant form;
• copies of documents that confirm that you have knowledge in the field of economics (diploma, certificate of completion of specialized courses);
• copies of documents confirming the registration and registration of the business with the tax service, as well as entry into the register; copies of documents confirming the creation and availability of jobs - this is necessary if you are applying for business development;

This list of documents may be supplemented, so be careful when submitting it.

If something is incorrectly compiled or something is missing, the fund has every right to refuse your participation.

How to get a grant: what to do?

So, you have already come close to the question: “ How to get a grant?”, then you should know the order of your actions:

Choose an organization that suits you to receive a grant.

It should correspond to your field of activity.

1. Study where the organization has already given money, in what amount and for what projects.
2. Study the requirements put forward by the fund, as well as the rules for drawing up an application for participation in the selection.
3. Prepare all necessary documents.

Create a credible business plan that clearly outlines your goals, problems, and solutions.

Focus on the financial part.

4. Prepare a compelling and detailed presentation of your upcoming project.

All you have to do is wait.

Most often, after the application deadline has expired, funds are given 3 months to review the applications received.

How are grant applications decided?

The first few days are given to check the correctness of the preparation and availability of all necessary documents.

And only then the fund begins to study business plans.

Most often, funds use their own developed point scale, thanks to which they can form a rating of participants.

When considering, special attention is paid not only to the goals and problems set, but also to their solution.

The reliability of the above calculations is also checked.

State funds take note of those entrepreneurs who themselves can contribute a certain amount to the development or opening of a business.

And business plans that require full financing are most often rejected.

As for financing an existing business, attention is also paid to the dynamics of development.

If the company produced poor performance during the period that it existed, then it will most likely be rejected.

Those projects that have already received funds from the selected fund can receive additional points for the “piggy bank”.

Notifications are sent to the winners, and information about them appears on the official website of the fund.

How realistic is it to receive a grant from the state to develop your business?

explained in the video:

What to do with the funds received?

The received grant is already an agreement between a businessman who needs money and an investor.

Therefore, the first has certain obligations that require fulfillment:

• the funds received must be used exclusively for the purposes for which they are issued;
• all necessary reporting must be submitted within strictly specified deadlines;
• if force majeure occurs or if it is impossible to complete a certain part of the project, you must immediately contact the fund to make adjustments;
• During checks, the commission must not be interfered with and all information related to the funds received must be provided.

In case of misuse of the grant or failure to comply with other terms of the agreement, the organization may demand its termination and file a lawsuit for the return of all allocated funds.

So, not only should you be interested in how to get a grant, but also how to fulfill all the conditions of the fund that will give you money.

Know that this is a great chance to get additional funding for your business, so take this issue seriously.

You will get the opportunity not only for your own development, but also contribute to improving the economic situation in your region.

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To implement any business idea, you need a certain amount of start-up capital. If you don't have the money to open your own business, don't give up on your dream. The easiest way out of this situation is to seek help from the state. You will learn how to get grants for starting a small business for aspiring entrepreneurs in 2019 from this article.

Who receives grants?

Almost every entrepreneur dreams of receiving a grant to start a business. However, only unemployed citizens who are registered with the employment center, or entrepreneurs who want to expand their existing business, can apply for a cash subsidy.

When issuing grants for starting a business in 2019, foreign sponsors insist that the allocated funds be spent in full accordance with the business plan. The state pays more attention to social protection of the population and employment of citizens. In this regard, foreign investors usually finance enterprises that have already participated in similar programs, and government funds more often issue business start-up grants to aspiring entrepreneurs. At the same time, they give preference to socially vulnerable segments of the population:

• University graduates;
• Citizens who have been laid off;
• Single moms;
• Disabled people, etc.

According to the law, a grant for opening a small business in 2019 can be received by citizens over 18 years of age who want to engage in entrepreneurial activity in our country.

Application deadlines

Now let’s try to figure out where to get a grant to start a business. First of all, visit the district small business development center. There they will tell you where to go and what documents you need to collect. In addition, information about holding competitions for government grants to start a business can be found in regional print media or on the Internet. Application deadlines and requirements for competition participants can also be obtained from the Ministry of Economic Development and local administration.

If you try hard, you can find a fund that will finance the most extravagant project. And yet, to be guaranteed to receive a grant, you need to look for more. Experts recommend that beginners focus on the service sector.

You can open:

• Training courses;
• Auto repair shop;
• Cleaning company;
• Design studio;
• Marketing agency.

If you don't know, you can rent out commercial and residential properties. But in this case, one cannot count on state support.

Requirements for applicants

Each foundation that issues grants has certain requirements for competition participants. As a rule, these requests are similar, so there are a number of general requirements that applicants for receiving financial assistance must fulfill:

• Filing an application;
• Project development;
• Project protection;
• Project implementation;
• A full report on the funds spent.

There are also many small nuances that should not be overlooked. It often happens that a person presents a brilliant project, but cannot figure out the intended use of funds, and is rejected. At first glance, it may seem that spending money is easy, but if it is someone else's money received for the implementation of a specific project, everything is much more complicated.

Therefore, before submitting an application, carefully study all the reporting rules - deadlines, report form and procedure for providing information. In this case, you can easily account for every penny spent.

The easiest way is to get a grant for renting or purchasing premises, as well as purchasing equipment, raw materials and supplies. In addition, it should be taken into account that almost all government programs for financing small businesses are aimed at combating unemployment, so the commission gives preference to entrepreneurs who create new jobs.

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How are applications decided?

The most important question that many aspiring entrepreneurs are looking for an answer to is how to win a grant to start a business?

The commission that makes decisions on applications carefully checks all documents, and in particular the business plan. It must contain all the necessary financial and economic indicators and their detailed justification. Describe in detail. In this case, the commission members will get a clear idea of ​​the prospects for the development of your business and the effectiveness of the project.

An entrepreneur who does not provide such calculations will most likely be refused. In addition, the business plan must clearly indicate where the money received will be spent. You need to calculate everything in such a way that the commission members are convinced that these funds are not your main funds. The state does not support newcomers who want to open their own business solely through gratuitous subsidies. It is advisable that the amount of your personal starting capital is approximately twice the size of the subsidy.

Another important point is the creation of jobs. The more people you can employ in your enterprise, the better, since every project that is subject to government funding must be aimed at combating unemployment. But at the same time, the number of jobs should not have a negative impact on the profitability of the project.