Business Start Up Incentives

At a time when economies around the world have experienced a period of recession and in 2010 are still trying to recover, business start up schemes are an important way to encourage new companies. With a degree of financial uncertainty still in the air, people need incentives to put their great ideas into practice.

Various countries offer different types of schemes either through direct government funding or by way of specific agencies. For example, in the United States there is the Small Business Administration (SBA), which was established in 1953.

Start Up IncentivesThe remit of the SBA was to help and protect the interests of small businesses and ensure that a fair proportion of government contracts are awarded to smaller firms. Since its inception, the SBA has helped nearly 20 million businesses and is the largest financial backers of companies in the United States.

One very important aspect of starting a new business is having a great plan. Without this it is unlikely that anyone will offer financial help, especially the banks. As part of the various business start up schemes offered in countries like the United States, help with the business plan is sometimes given for free.

Certainly the SBA offers this service free of charge through its Small Business Development Centers. Professional assistance is given to anyone looking to start a small business. This help and advice can be given on subjects such as

  • Business plans
  • Business regulations and laws
  • Buying equipment
  • Marketing
  • Obtaining a loan
  • Patents and copyrights
  • Recruitment
  • Selling to the government and overseas

Unless you have experience of such things through owing another business or working for another firm, this kind of detail can be quite daunting when starting a new business venture. Therefore, having advice and training free of charge through business start up schemes is a great way to go before you start.

Small Button

Some governments offer financial assistance or incentives through tax credits to small businesses. Whilst the US Government does not provide grants for starting a new business the SBA does offer small loan programs.

The SBA does not provide the loans directly to the business but through private sector lenders. These loans are then guaranteed by the SBA up to a maximum amount of $1 million although there is a program offering loans of up to $2 million.

Some American states do also offer small business grants to individuals to help get the new venture up and running. Other countries offer business start up schemes as well in order to help encourage entrepreneurs and give a boost to their respective economies.

In the UK for example the government provides grants and incentives to new businesses through its various departments and agencies. The UK Government’s attitude is that they want to encourage private sector growth whilst cutting public spending and waste in order to boost the economy.

Every country has ways offering people an incentive to start a new business, so long as it is a well thought out and viable venture. If you are starting a new business for the first time, the important thing is to ask for help as very often government agencies will provide it.