Wednesday, June 15, 2011

Grants to small business: where to find and how to get

What is the grant? Today, Grant - is not only to finance research, Freestuff trip to Europe, or simply raising scholarship student of botany, it is a real opportunity to start or expand their business through borrowed, and, most importantly, are not subject to refund. Tempting? - Then let's see, what is a grant. According to the modern and generally accepted definition, the grant - a grant to enterprises, organizations and individuals in cash or in kind to carry out any activity with a subsequent report on their use. In our case - a start-up capital an entrepreneur, ie, solution of the fundamental problems at the stage of business creation. Should note that the search and a grant - quite a challenge, however, the money from the sky did not fall, so if you have an interesting, innovative, and above all economically feasible idea, you can try to get to its implementation sponsorship money. Stipulate at once that money is not issued to you personally and your organization for a specific purpose, so you are responsible for the misuse of funds allocated to you. That is why the search for grants (the receipt of money) should not be an end in itself, think of sponsorship, as an aid in the development of your favorite things, only then you will have to wait for success. Rule "grantirovaniya" Money is not allocated an entrepreneur himself and his organization to be specified in the application task. The purpose and the amount giants are marked on the stage of creating a business plan and not subject to revision. It so happened that preference is given to sponsors as realistic or the most original designs. Do not throw to first got into your grant, as a courtyard at a dog a bone, be selective. Carefully read all the information on the grant, to which he pointed out how you can get. Most failures occur precisely because of the inconsistency of the grant applications topics. If too much like, you can simply adjust their task goals of the Foundation, but be prepared to reject an organization established to support agricultural development and, if you were previously engaged in retail sales of Chinese toys. Be prepared for the fact that money is allocated, not all at once, and come in tranches. And, where possible, for example, when purchasing org. technology, you get the technique, rather than money. For each phase of your project provides a certain amount. It is better to be late paying credit to the bank than prevent misuse of sponsorship funds. One false move - and a negative reputation in this environment is provided to you forever. The same applies to the timeliness and correctness of filling in all the reports. They should be treated exactly with the instructions given to you, and strictly in time. Typically, the first time a lot of money will not give, so ask at a minimum, only the necessary things objectively. For such applications are far more likely to qualify than those who ask not only the main means of labor, but also on the stationery, the cooler at the office and set the head. I think that all entrepreneurs are ready to the fact that absolutely nothing is free, and the need to pay income tax on the amount of the grant is not much you upset. Being asked? Make a package of documents is not so difficult, you just have to be careful. As a rule, you will be required to provide the name of the project, its purpose, what do you expect to get in the end, to indicate the timing and stages of the project and approximate its value. To receive a grant from the state will need in time to submit for consideration: The Business Plan. Certificate of state registration. Certificate of registration in the register of small businesses. Copies of constituent documents. Copies of all passport pages. Application in the prescribed form. Private, particularly foreign funds, may request additional, and sometimes, seemingly absurd documentation, so be mentally prepared for this. Who gives? Views on who should be given the grand diametrically opposite from foreign donors and state funds, if the first based on the need of the target and the total expenditure of funds allocated in exactly the business plan, the state as a priority puts the problem of employment and social protection. Therefore, foreign investors are more willing to finance those who have already participated in similar programs, and public funds tend to support those who registered his company recently. The State allocates funds for young entrepreneurs "on the rise." Note that ceteris paribus preference will be given to socially vulnerable groups: graduates and the unemployed, those who are on administrative leave or gets laid off staff, lone mother with a child, disabled or retired military. What gives? About 30% of entrepreneurs who have received a grant in small business, are engaged in the provision of services, 20% - are engaged in manufacturing and only 12% - in trade. More real than just a grant obtained from the rent, purchase of fixed assets, purchasing raw materials. A huge plus for the grantee will be his willingness to pay a portion of the necessary equipment from its own funds. Such an approach will convince the commission to the seriousness of the entrepreneur and his belief in the success of the enterprise. There is also a feature: domestic funds often refuse to pay the salaries of employees, while in foreign funds this expense item of business plan does not raise any problems. As a rule, the state finances more applied projects, including production, agriculture, science (mostly science) and education, and foreign funds - for research in the field of ecology, economy and democracy, as well as culture and society. Private domestic funds aimed at supporting innovation, economics and business. If you want, and enough persistence you can find the fund for any project, even the most extravagant, but if you're not sick of any particular idea, better and easier for beginners to focus on services. With the help of a grant you may well discover klinningovuyu company (incidentally, the leader in grandopoluchenii), any repair shop: auto, home appliances, footwear, and any training courses - quite realistic idea here can also include a marketing agency or design studio. Arithmetic is simple - the product of such an enterprise - are the mental / creative calculations for your employees, their costs - wages, so the purchase, delivery and storage of goods - do not need money. Who gives? Naturally, the state represented by such ministries as the Committee for Development of Small and Medium Enterprises, Committee for Economic Development, Industrial Policy and Trade, advanced self-government bodies on the ground, they are also municipalities, such a grant could be funded from the budget of the city, region, and may be partly due local and federal budgets. Announcement of the grants do not depend on each column as "rent" or "buy", so the first task an entrepreneur with concerns about receiving the grant, to specify in the local administration, where and how he can learn about the ongoing competitions. Despite small compared to the amount of foreign grants, the state can provide such bonuses as incentives, ranging from rental of municipal facilities and sites, ending with advertising and legal assistance. Agree, it is already half done! The best that can be - it will participate in targeted funding programs, and in them you will receive comprehensive assistance. Next on the list are business associations. These organizations already know exactly what needs money businessman and requirements for the projects they fund the most realistic. Current grants can be found, for example, the site Imaginary commercial banks operating in small and medium business, also act as sponsors in establishing the grants with a very decent sum, offering the winners and more favorable credit conditions. Tasty piece of pie sponsorship - it is certainly foreign grants, but to get them is not so simple. Foreign funds finance the domestic businessmen are extremely reluctant, but the chance is always there. Let's start with the classification of international grantmaking organizations. This is primarily ethnic organizations such as the UN, the European Union (EU), UNESCO, US AID, USIA. Many of them have branch offices in Russia. National organizations, such as Finland and Norway, the fund in Russia, including, and entrepreneurial activity. Barents Secretariat (Norway) provides grants for industrial and commercial development by private companies. The undisputed leader in the presence of "grant" the Russian market - the U.S., but the maximum for which you can rely on a commercial level, this "civic education", all the forces of American philanthropists are thrown, as you might imagine, to support democratic initiatives. U.S. authorities did not even spare 750,000 rubles for these purposes, so that the whole year you can still easily afford to maintain a staff of three people, pay them decent salaries, distributing leaflets, at least, buy a fax machine, printer and scanner you have just come out. If you are ready - then you are on the official website of the Embassy of the friendly state. Non-profit foundation of the New Eurasia ", again, supported by the U.S. Agency for International Development is providing assistance to small business development in Russia, so do not be amiss to visit the Fund in person or through a Web-based resources. The most promising in terms of getting real money on the business goals is help individual investors, large businesses, philanthropists who invest their own money in their projects that interest. Where? As you know, under a still stone gathers no moss, so look for would be long and hard, and perhaps quickly - as lucky. If you set up a permanent job with the funds, I advise you to apply to all ministries, embassies, local authorities with the question of the existence of grants and contacts with the organizations. All funds operating in Russia, domestic or overseas are required to register in their respective category of public bodies. You can visit the centers, the funds that interest you, if there are any in your area. If not, you can order by mail catalog Foundation Directory, uniting more than 100,000 U.S. foundations and corporate sponsors. A similar fund is also in Europe, he called the European Foundation Center, its mission - to finance projects in Europe and beyond. Contact the EFC can be in English and French. The same information can be found on the Internet, both on the sites themselves foundations: Foundation Directory or the European Foundation Center, and Internet directories, for example, on such portals. Summary: Do not expect freebies, sponsorship money will have to work out the full program. Forces you to give the fact that the work you are, anyway, in their own interests. Be patient and, if necessary, a dictionary and you'll find a grant that is suitable for implementing it for your project.

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