What are the Different Types of Business Start up Grants?

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  • Written By: Tess C. Taylor
  • Edited By: W. Everett
  • Last Modified Date: 20 October 2019
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When a business idea requires capital, business start up grants can be a helpful solution for some entrepreneurs. Small business money can come in many forms, including grants that are provided by state and local government agencies, special interest organizations, educational and non-profit assistance networks, as well as disadvantaged and minority grant programs.

The vast majority of business start up grants come from local and state government programs. These small business grant programs are focused on stimulating the economy by providing financial support to entrepreneurs and disadvantaged groups to help them create businesses and jobs in the community. Government grants come with certain requirements, and there can be a lengthy process to obtain one.

Other start up business grants come in the form of small amounts of money from special interest groups that want to help certain types of businesses. These groups may have an interest in growing a particular industry or providing an incentive to start a business in a certain area. Often, grants of this type come from groups that wish to promote a higher quality of living for an entire community, not just a handful of small businesses.


There are also many business start up grants that originate with educational and non-profit assistance networks. These grants are meant to enhance current services and programs that bring education and culture to a particular region. Grants can also be obtained from the government to fund educational and non-profit initiatives in areas with a lack of opportunities or resources. For example, grants are available to help pay for the costs of opening day care centers, buying materials for small private schools, and public service companies to give back to the community.

In addition to special interest groups, minorities, women, and other disadvantaged entrepreneurs can get business start up grants with government and private agencies. These grants are designed to empower women and minorities to start businesses that will generate tax revenues for local governments. In addition, business start up grants for women and minorities can improve communities in which there have been few opportunities.

It is important to note that grants are not free money. For example, some business grants require that the applicant match at least part of the funding with personal savings, fundraising activities, or small business loans. While business start up grants are available for a wide range of small businesses, there are also many other community resources for launching a new business.


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