Starting a business can be challenging, especially if you haven’t secured funding or financing. Today, we’ll talk about the various incentives the nation offers to businesses of all sizes. Some grants are restricted to established companies that have already proven a track record of stability. Others require returns in the percentage of shares for the company you will be building. To start a business using a grant, you need to be familiar with these technicalities. We’re here to provide a quick rundown of the key features of many grants you apply for. Let’s go over them together!
What is a Grant?
A grant is generally money granted to your company by a corporation, government, or non-profit organization. Grants are effectively unearned funds that you don’t have to repay. Their objective is to assist businesses during their pioneer stages of development. They frequently focus on boosting economic advantages for communities, initiatives, groups, and individuals. Getting a business grant as an entrepreneur might give your business the much-needed cash boost it requires to grow.
Primary Beneficiaries of Business Grants
Grants are highly sought after because everyone wants free money in business. You’ll notice that countless grants are for non-profit organizations, but as you keep looking – you’ll find plenty for corporations and small businesses. Small business awards frequently target particular regions, industries, firms, causes, or community organizations. Grants can range in size from hundreds to thousands to millions of pesos. However, the majority are under millions of pesos. They frequently serve as a complement to other small business funding options because of their size.
Can Startups Get Business Grants?
Yes! Grants are available for new businesses, but they won’t cover all your costs. They can pay for initial strategies in your business, but you should still seek more funding options. As an entrepreneur, it is also up to you to climb the ladder, and grants are only there as your stepping stone. Societal development grants are more common, particularly for novel goods and procedures. You may design, create, test, and improve your concepts with a business grant. These steps are vital to establishing your business as it forms its pillars of branding and innovation.
Governmental Grants You Should Look Out For
DOST Grants-In-Aid
The Department of Science and Technology (DOST) seeks to use its resources to promote and achieve sustainable economic growth and development through its Grants-In-Aid (GIA) Program. The GIA Program seeks to enhance productivity and quality of life for Filipinos through developing and promoting accessible technologies. Through the support of pertinent scientific and technological initiatives, the GIA program will aid entrepreneurs in their respective innovation projects.
Additionally, the GIA Program aims to increase the involvement of scientific and technological sectors, especially in research and development, promotion, technology transfer, utilization, human resource, information dissemination, and advocacy linkages. The General Appropriations Act (GAA)-the GIA Program supports designated scientific and technological activities. This offers to fund the execution of programs and projects listed in the present DOST priorities and thrusts.
National Innovation Council Grant
A policy advisory council with 25 members, the National Innovation Council (NIC) is among the leading governmental innovation branches in the country. Its top ten priority areas of innovation include Food and Agribusiness, Security and Defense, Finance, Public Administration, Trade, Transportation, Blue Economy and Water, Learning and Education, Energy, and Health.
The Philippine Innovation Act, also known as the Republic Act No. 11293, says that one of the state’s objectives is to encourage innovation as a crucial element of national development and sustainable economic progress. According to the act, innovation is the generation of fresh concepts that lead to the construction of novel or enhanced procedures, goods, and services that are subsequently disseminated or transmitted in the market.
NIC’s funding threshold for national-scope businesses is limited to thirty million (Php 30,000,000), fifteen million (Php 15,000,000) for its inter-regional businesses, and seven million and five-hundred thousand (Php 7,500,000) for its local government businesses. The National Economic and Development Authority (NEDA) is asked to provide the innovation grants under a unique provision of Republic Act No.11518 which requires the business to evaluate its costing before application.
DTI Kapatid Mentor Me Program
The Department of Trade and Industry and the Philippine Center for Entrepreneurship (PCE) has launched Project KAPATID to assist the nation’s micro and small businesses (SMEs) through three crucial elements. In the Mentor ME (micro-entrepreneurs) program, large corporations train SMEs on various business operations through coaching and mentoring. It also offers a Shared Service Facility (SSF) Adopt-an-SSF initiative, which seeks to assist micro-entrepreneurs by giving them access to neighborhood businesses. The program also provides the Inclusive Business (IB) concept, which integrates SMEs into the value chains of major corporations.
Entrepreneurs may want both the network to help them launch their firm and advice on how to operate it properly. In order to support MSMEs, the DTI KAPATID Mentor Me initiative connects them with larger businesses and offers them free education and training. This government initiative provides existing and startup business owners in the Philippines with the information, suggestions, abilities, and contracts they need to manage and expand their businesses.
Organization-Led Grants
QBO Innovation Hub
QBO (pronounced “ku-bo”) is a platform that promotes tech and innovation, connects and grows the local startup ecosystem, and helps entrepreneurs in the Philippines. QBO helps startups of every size, industry, and stage of growth by offering a variety of services and programs that are based on the needs of genuine entrepreneurs. QBO Innovation Hub connects small and big-time entrepreneurs to each other for networking opportunities while providing a specifically tailored grant.
QBO also offers free membership to join programs and services which help guide new entrepreneurs to navigate their business goals. The organization prides itself on its vast local and international network, access to the latest startup news, growth opportunities, and stage agnostics. You can also jump in and learn more about the startup and business ecosystem in the Philippines through its incubation program as you simultaneously work on your business.
SkillsUpNet Grant
The SkillsUpNet Philippines (SUNPh) is a cutting-edge skills-delivery initiative run by companies like the Asian Development Bank. In this program, networks of firms join together to establish short-term training for their employees and managers by applying for funds on a competitive basis. Grants of $20,000 to $80,000 were recently given to five networks of businesses in the past year through the program. The initiative is a component of the government’s National Employment Recovery Strategy, which aims to increase employees’ access to training, employment opportunities, and income prospects while assisting the private sector in generating long-term job chances.
Some of SUNPh program’s enterprise-led workplace skills training includes information technology animation, construction, agribusiness, and tourism. Women-owned businesses come fifth in the sector, which was included in the list of initiatives that have a dedicated grant. While continuing its efforts to end extreme poverty, the Asian Development Bank is dedicated to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
Forest Foundation Philippines
The Forest Foundation Philippines is a non-governmental organization that supports initiatives that preserve and safeguard Philippine forests as well as those that depend on them through funds and technical assistance. The organization has been awarding grants to groups and individuals since 2002 in an effort to empower people to save and maintain the woods.
Individual businesses, groups, and corporations that are legally registered, including professionals, non-governmental organizations, and consulting firms, are welcome to apply for a grant at Forest Foundation Philippines. Currently, the organization funds initiatives that help safeguard the Philippine forest and its biodiversity. The organization is particularly interested in protecting and restoring forests, as well as in law enforcement, capacity-building, sustainable livelihood, conservation research, and campaigning.
Small, medium, and large grants are available for applicants who are interested. Projects up to Php 500,000 may be supported by small donations over the course of a year. Projects costing up to Php 6,000,000 can be supported by medium grants, and large grants may be used to fund initiatives with a yearly budget of up to Php 24,000,000.
The Philippines Foundation
The Philippines Foundation is committed to fostering sustainable development projects with an emphasis on health, education, environment, human rights, and poverty reduction. Their programs are focused on creating a more sustainable ecosystem and biodiversity for the Philippines. Some of its projects include cooperatives and organizations that are community-based. The organization aids in creating sustainable programs for entrepreneurs with the goal of creating projects that address sustainability issues for the environment, economic development, and health.
The Philippines Foundation forms partnerships with government sectors, foundations, private companies, and other non-governmental organizations to construct multi-sectoral strategies and bring about catalytic change. These collaborations are based on a solid conviction in the strength and potential of Filipino entrepreneurs and the entirety of its people.
It might be difficult to launch a firm, particularly if you don’t have cash or finance. Today we discussed the numerous incentives that the country provides to companies of all sizes. Some grants are only available to well-established businesses with a track record of stability, while others offer grants even to beginner entrepreneurs. With the list we provided above, we’re happy to bring the country’s finest opportunities for your venture to acquire the best grant option for your business.
We know how important networks and funding are. More than anyone, a fellow business would understand what it’s like to climb the ladder of success in our industry. We also have some solutions for you at Shoppable. Whether you’re a business starting out and you want to become a seller with a good audience, or you’re a company looking to expand your buying channels, we guide you through! We can work together to achieve your business goals!
