Government Funding For Small Business

Government funding for small business is hardly new. How do you imagine the governments of ancient Babylonia and China had buildings built, or clothes made, or food grown? Well, ok some of it was slave labor. But lots and lots of it came from small business people with government contracts.

And it wasn't the Czar or Shogun who granted most of those contracts. It was the "thousands of clerks" who did so. And still do.

That is still the way that government exerts the greatest influence over society and over business: with its billions and billions and billions of dollars (and rupees) for government contracts. Just look at all the government entities there are: city government, county government, state government, the federal government (and the gazillion branches thereof), the water district, the school district, the gas and power district, the environmental protection district, the library district, the sewer district, the art district. (Yeah, I made the last one up. Sorry.)

And inside each government entity there are clerks who dole out government contracts and favors.

Many projects that provide government funding for small business focus on disadvantaged areas. New community centers. Tenement rehab. Job training. After school projects.
And many more focus on the every day work of governments. The catering for business meetings. The office supplies. The painting projects.

A third large component of government funding for small business comes via non-profit agencies. For instance, a non-profit agency may have identified a need for a health clinic in a particular area. The non-profit has agreed to provide 75% of the funding if the government will contribute the rest. It's a very common cooperative effort.

Identifying these government opportunities means knowing the clerks who do the contract assignments. That is no small task. To say that networking is important to your business success is putting it mildly. You can't even bid on a project if you don't know that it exists.

The federal government, and many state governments, have a central internet posting service for all contracts over a certain dollar amount.

The fourth big way that government exerts its power over small business isn't strictly government funding for small business. It is taxation. Businesses are encouraged to buy, or not. To travel, nor not. To build, or not. To relocate, or not. Tax breaks don't come from a benevolent government. They come from a government that wants us to behave in certain ways. Check it out. Maybe it suits your plans too.

But through all these means -- contracts, everyday operation, non-profit projects and taxation -- there is a lot of money flowing from governments to small business.
(psst -- We haven't even mentioned Government Grants!)

Go get yours.

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