Sometimes
governments
provide
public
aid
to
set up
businesses
in the
form of
grants
for
first
settlement,
international
business
expansion
or even
reducing
the costs
of
social security and
offering
tax
rebates
When
a entrepreneur
decides
to start
a
business venture,
it is
normal to
consider
the possibility
of
obtaining
some
form of public
assistance
in the form
of
grants
to fund
some or
all of
the
adventure,
especially at
the beginning
when
it is
more
difficult
to
obtain
resources
from alternative
sources.
With
the
drying
up of credit,
it is normal that
the state
also
helps
launch
a
company
by
providing
public
resources
to
begin
work.
Given these circumstances, the necessary ingredients are in place for the state to act as a lender or funder of last resort, providing economic resources that companies need to finance their activities, often sunk. But should this be an activity reserved for the public sector?
It is perfectly plausible and reasonable that all entrepreneurs seek public support to finance their activities. However, the business must not be influenced in any way for such aid. Every company should be profitable by itself, and seek private funding to determine whether the business is viable or not based on their expected benefits, even in times of crisis.
If our company is not viable the public grants will only serve to prolong our business agony. What criteria would set the state to award such grants? Would there be open bar funding for any business project regardless of the business plan and the future viability of the company?
Private funding plays an essential role in the economy: differentiate viable and profitable for those who are not so projects. If we are unable to obtain financing through the correct channels, our business may not be right, and maybe we have to look for another different business niche.
Public support can be the solution in a precise moment, but should never become our primary source of obtaining resources to finance our business projects. The grants are to be considered only as a point bonus if achieved, is welcome, especially if the aid does not need to be returned.
Given these circumstances, the necessary ingredients are in place for the state to act as a lender or funder of last resort, providing economic resources that companies need to finance their activities, often sunk. But should this be an activity reserved for the public sector?
It is perfectly plausible and reasonable that all entrepreneurs seek public support to finance their activities. However, the business must not be influenced in any way for such aid. Every company should be profitable by itself, and seek private funding to determine whether the business is viable or not based on their expected benefits, even in times of crisis.
If our company is not viable the public grants will only serve to prolong our business agony. What criteria would set the state to award such grants? Would there be open bar funding for any business project regardless of the business plan and the future viability of the company?
Private funding plays an essential role in the economy: differentiate viable and profitable for those who are not so projects. If we are unable to obtain financing through the correct channels, our business may not be right, and maybe we have to look for another different business niche.
Public support can be the solution in a precise moment, but should never become our primary source of obtaining resources to finance our business projects. The grants are to be considered only as a point bonus if achieved, is welcome, especially if the aid does not need to be returned.
Before
registering
your
business
we
recommend
that
you consult a
professional
about
the
possibility of
getting
some public grants and remember
a good
professional advice
can
save you
a lot
of money.
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