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maart 2020

Pros and Cons of Business Grants

By | Finance

The realisation of a fresh business idea or an impressive development plan always comes along with financial and planning difficulties. However, as a real entrepreneur, you know about the support that the government provides to young and developing businesses. Subsidies and grants are considered as one of the best ways of funding. It might be a case that you are still deciding about your willingness to apply for the governmental grant. We would love to help you and provide some pros and cons of the business grants.

Advantages of grants:

Complimentary money

Grants are attractive for businesses because they do not have to be repaid. Not only that, but some grants offer a large amount of money, depending on the company’s idea or purposes of investment.┬á

Available information

Description and information about the subsidies conditions or deadlines is freely available to everyone. It can be found on official government sources or related blog posts. This aspect is essential for entrepreneurs as it is crucial to make qualitative research and find the grant suitable for you.

Waterfall effect

Once you have been awarded the grant, you become a reliable candidate. Therefore, you have better chances to receive other governmental subsidies or grants from other organisations.

Increased visibility

Winning one of the acclaimed grants shows that your work is of notice. Thus, it can perform as a way of promotion. It helps you to gain credibility not only from organisations and investors but also from potential leads or clients.

Disadvantages of grants:

Time-consuming

You have to do a lot of research and paperwork if you decide to apply for a grant. Once you have found a grant that suits you the best, you have to write a good proposal. The proposal is the most important step in the application process. A creative idea cannot receive a grant without a convincing proposal. However, the companies that specialise on subsidies can help you with the proposal and all the application steps. For example, the WBSO Software Specialist has been active in the market for 12 years and is experienced in obtaining software subsidies. Their advisors have handled and successfully submitted thousands of applications. Therefore, they can help you to write a successful proposal.

Big competition

Many of the businesses with bright and creative ideas hope to receive governmental support. Thus, the competition for one grant is high. Be prepared for the difficulties but do not let them inhibit you. From statistics, 99% of the WBSO Software Specialist applicants are approved for grants. Thus, in case they find your project suitable, the chance that the subsidy provider will also find it suitable is 99%.

Conditions and restrictions

Although grants are complementary money, they come with restrictions. When applying for a grant you have to be very specific about the ways you are planning to spend this money. After receiving the grant, you have to stick to the plan.

Overall, the pros of the decision to apply for a grant outweigh the cons. The advantages and disadvantages of governmental grants still point to the idea of complimentary money for the development of your business. In the end, the most important thing is your own belief in the future of the idea and willingness to risk.