Financial Support for Student Entrepreneurs

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Views: 261

Words: 2265

Pages: 10

Category: Business and Industry

Date Submitted: 11/27/2012 03:52 PM

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1.0 Introduction

Young entrepreneurs often have difficult times starting their own business; the greatest challenge is often finding the money. Initial funding is crucial to every young entrepreneur. Getting that new product noticed in the marketplace is virtually impossible without capital. Young people usually have little to no credit, so bank loan is out of the question. Fortunately, there are several organizations available to help. Young entrepreneurs can apply to these organizations for funding, regardless of credit history. However, there is a necessary process that one must complete to receive these funds: research available programs, analyze all options, make a final decision and apply.

2.0 Research

The first step in finding the money is to do research. A young entrepreneur has many options to choose from. There are several national programs, as well as several regional and local programs. Each program provides funding, but they offer a variety of financing formats. Research is necessary to find out what programs are available, and which ones fit the business ideas the best.

2.1 National Programs

Examples of national organizations are the Small Business Funding Center (SBFC), Canadian Youth Business Foundation (CYBF), and the Business Development Bank of Canada (BDC). Each of these organizations can provide funds several different ways. Examples are grants and subsides, loans, and through equity funding and tax refunds.

The Small Business Funding Center is a national funding organization, offering many different financing options. Young people can receive funding through grants,

subsides, low or no interest loans, and/or tax refunds. This organization utilises Canadian financial resources, and those located in local regions to obtain capital. Funding ranges from $1,500 to $10,000,000, based on the validity of the business and its needs...