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Small business grants are a great way to secure capital for women who are either starting to shape a business idea or who are seeking to inject more resources into what is already a growing venture.
Meanwhile, the coronavirus pandemic has also prompted many government-backed institutions, private endowments, and large companies to offer this kind of aid to women-led businesses as a way to support them while the downturn persists.
If you’ve been looking for alternatives to raise capital for your business, this article takes a closer look at the benefits and most relevant assistance for women applying for small business grants.
How Do Small Business Grants for Women Work?
A small business grant works as a gift extended by a third party to an entrepreneur who is either looking for resources to launch a new venture or to a promising startup that has already moved forward with the execution of an idea.
Unlike loans, small business grants don’t have to be repaid to the institution that offered the money, although, in some cases, they can be disbursed in multiple stages when they are conditional to the completion of an educational or training program.
Additionally, grants tend to have a predefined scope, which means that the money has to be used for a specific purpose rather than to finance general expenditures.
Top 4 Benefits of Small Business Grants for Women
Following is a brief list of the most relevant benefits of these instruments for female entrepreneurs so you can apply for one with a full understanding of the kind of help that receiving such aid can bring.
Benefit #1 – Funding at zero cost
The most important benefit of grants compared to other forms of financing is that the money doesn’t have to be repaid to the issuer while the instrument does not generate any kind of commission or interest expense.
That said, there are often some costs that the entrepreneur will incur during the application process, such as presenting a prototype, conducting market research, or hiring a designer or a financial professional to help in drafting a business plan.
Benefit #2 – They usually come with a training offering
Small business grants are often extended alongside a training opportunity, as most institutions usually seek to help these entrepreneurs in learning as much as they can about how a business functions and how they can grow it once they get the money.
These training programs often teach female small business owners the basics of running a business by tackling topics like accounting, marketing, sales, hiring, and supply chain.
Benefit #3 – Receiving a grant strengthens the business’ credibility
Being the recipient of a grant gives the business a credibility boost that can be quite useful when presenting the idea, product, or service to third parties, like prospective suppliers or clients, as it means that somebody – usually a reputable institution – believed in the idea during the early stages of its development.
For this reason, most businesses that become the recipient of a grant tend to display a badge with such an achievement as part of their strategy to strengthen their reputation.
Benefit #4 – Receiving a grant can open doors to other opportunities
Since small business grants for women are often well-publicized events that get some degree of press coverage, they can be a powerful marketing tool for entrepreneurs who can publicize the name of their venture thereby taking advantage of being put under the spotlight – at least on a local scale.
This is often a good way to raise awareness among the local business community, which could lead to new doors opening to raise further capital, bring in more clients, or get to know other strategic suppliers.
Bottom-line
Now that you understand how powerful small business grants can be, you can research which government-backed small business grants specifically tailored for women that you and your business qualify for!
Good luck out there!
