Did you know that there are government programs available to support and fund your small business or startup? Many people do question how effective these programs are for creating jobs and economic growth. However, what does a government program for startups mean for you as an entrepreneur?

Whether you need money to get started or to scale up your business, funding is often an issue. After all, the concepts of angel investing and venture capital are based on a lack of capital to support the risky phases of business ownership. Many entrepreneurs must practice bootstrapping by necessity- they have to get by with very little.

This is why the government has stepped in. They have created government programs for startup to alleviate the burden of funding for business owners. There are several options to help small business owners get up and running or to grow. Options like SBA loans and grants support entrepreneurs, but their motivation is political. They want to create jobs and boost the economy. 

However, what does all this money/effort accomplish? The funding is definitely being used- but are the programs truly successful? It’s hard to tell.

There is some thought that despite these programs, we don’t understand how to support entrepreneurship, help entrepreneurs succeed and create economic growth. Therefore, government programs for startups have little effect.

On the other hand, there is some belief that it’s the opposite. Government is everything but a precursor to entrepreneurship. Support from the government is required to drive growth. If not for government investment, there wouldn’t be much growth at all.

So is government support a waste or essential? In this article, we’ll discuss this from several angles:


As an entrepreneur, you must figure out how to provide your customers with value. Any aspect where you improve the lives of your customers provides value. That being said, its easy to lose track of this when you’re trying to run your day-to-day operations. One solution to cash flow issues is to tweak your idea or value to fit the funding call for a particular program. However, this isn’t a good idea. If you stray from your creation of value, you will not succeed on your own.


There is a such thing as “too much of a good thing.” When you have more funding than you really need, you become lethargic and ineffective. You make decisions that may not be the best for your business because you feel like you can afford the extra costs associated with those decisions. It’s the opposite of bootstrapping, but it’s just as much of a problem. You are not as concerned with cutting costs and making the most out of your expenses. This can affect the sustainability and profitability of your business.


When it comes to these government programs for startups, it’s important that you understand expectations/requirements before you apply. The application process alone is often time-consuming and troublesome. These programs may also require more public insight than you’re comfortable with and you may have to report more information to these entities than you really want to.


One thing you must remember is that external funding usually has some strings attached- whether from a private investor or a government program for startups. You must make sure you’re aware of the expectations before applying and accepting support. You may be required to give up your independence.


If you are considering a government program for a startup for your company, you might want to keep these things in mind. If you need funding for your business, contact Crimson Stone Capital Solutions to learn more about your options.