Any business needs funding. This includes small businesses of course, not just multinationals. A well-funded small business is eventually profitable to the economy in general down the line. However, small businesses always seem to have more trouble getting funding in the beginning. Entrepreneurs have to bear the burden during touch times in a recession too. This forces many young entrepreneurs to seek external funding from financial institutions, such as banks.
Financial institutions usually provide small business funding for small businesses with good business proposals and top quality business plans. This is in addition to other requirements that a business must meet to be eligible for funding, such as undertaking a feasibility study, usually done by the funding provider, be it a financial institution or government agency. This enables the banks or agency to determine what really is your potential for long-term success, profitability and how many people you could potentially employ for the domestic market in Canada. If you prove that you can succeed in your endeavors a lot of times small businesses can get that all important funding that they so desperately need.
Small business funding Canada
Small businesses are a boost to any economy really, as they contribute to funding the national coffers through payment of taxes. These taxes are a major source of revenue for any economy when you think about it in the grand scheme of things. This tax revenue is vital for any country. An economy whose citizens pay tax effectively can run smoothly if its expenditure is equally balanced of course.
Small businesses are also important to the economy for another reason in that they assist in reducing unemployment levels too. Small businesses often can employ many people who would have been jobless and destitute, and may not be able to land a job in an elite level multinational. Employed people are also able to pay taxes as required, so hence yet again there is another winner for the tax man, thus benefiting the economy overall. Small business funding in Canada is simply vital, as without it, small businesses quite simply would not be able to pay salaries to employees if it doesn’t have the necessary capital.
Small business funding in Canada enables people to be able to sustain their own livelihoods without the need for government assistance also. When people are self-employed, they may not need the government to provide their primary and secondary needs in terms of government welfare. The government can then use this money to put back into the domestic economy, hence another benefit for the economy.
Small businesses that attain funding will be solvent, plain and simple. This ensures that their debts are paid and they can receive more funding for growth. A small business can grow and become very profitable given the right amount of time, management and adequate funding in its life cycle. In future, when they progress from small business to medium/large sized enterprise, they can actually also become a source of funding for other businesses, another winner for the domestic Canadian economy. An economy where businesses flourish is sustainable and stable.
Small business funding in Canada does not necessarily mean capital used for start-ups. You could also get funding for expanding your business. Either way, it is going to be profitable to the economy whatever way you look at it.