There’s no denying that the government plays an integral role in small business development. It helps create a conducive environment through tax breaks, grants, and low-interest financing. Small businesses can also benefit by accessing new markets with the government’s help.
Drexel Heard II, a government relations expert, says many startups take advantage of these incentives to develop and implement new technologies. Additionally, governments may create public-private partnerships to facilitate economic development, such as through public-private venture capital funds or incubators. Because of this, entrepreneurs find it easier to create more jobs in the local community.
Heard II also noted that government agencies like the Small Business Administration (SBA) often provide loan guarantees and other services to help small businesses start and grow. These programs help small businesses access capital to purchase inventory, expand operations, hire new employees, and perform other activities.
Entrepreneurs find these programs useful, especially if they struggle to secure conventional financing. Some programs offer long-term, fixed-rate financing for the purchase of land, buildings, and equipment. Funding is also available to small businesses hit hard by economic hardship or natural disasters. That way, they can stay afloat and continue serving customers.
Another key form of support mentioned by Drexel Heard II is infrastructure improvement funding for small businesses. This funding is available through various programs, grants, and loan guarantees. Some programs focus on businesses in rural communities. They finance projects like water and sewer line upgrades, business facility improvements, and energy efficiency projects.
Meanwhile, the Environmental Protection Agency (EPA) also provides grants for small businesses for infrastructure improvement projects. The grants support wastewater treatment plant upgrades, water line improvements, and stormwater management projects.
Specialized training programs enhance the operational capabilities of startups in various industries, including manufacturing, retail, and hospitality. The Department of Labor offers veterans and other eligible individuals job training and apprenticeship programs.
Other government agencies offer small business owners free one-on-one business counseling and assistance. They also organize workshops and seminars. On top of that, entrepreneurs can take advantage of resources offered by many states, counties, and cities.
The government offers a variety of tax breaks to help small businesses succeed and grow. These tax breaks include deductions for startup costs, business expenses, and health insurance premiums. Businesses also receive credits for research and development. Additionally, the government offers tax credits for hiring new employees, paying for health care, and investing in certain energy-saving projects.
Heard stressed that the government could change allowable tax deductions as it deems fit. Some changes can be substantial, depending on the government’s plans at the time. Economic crises triggered by natural disasters and other factors may force the authorities to up the tax incentives. Doing so helps businesses stay afloat.
Tax breaks help reduce the cost of equipment purchases, construction costs, and other infrastructure improvement projects.
Drexel Heard II has worked in various professional capacities before focusing on government relations and communications. Over the years, he worked as a political commentator and a creative director. He boasts a keen sense of international and domestic policy.