Microbusiness Funding Solutions

Did you know the average startup cost for a microbusiness is just $3,000? Yet, this relatively small amount can be a huge hurdle for many aspiring entrepreneurs. Even though traditional loans and grants seem like viable options, they're often out of reach for microbusiness owners. Here’s why:

• Grant Funding Challenges: They’re not as abundant as many think, are highly competitive, and often have strict stipulations.

• Traditional Loan Barriers: Lack of credit history, perceived risk, small loan amounts, and insufficient business planning make traditional lenders wary of microbusinesses.

So how can we help microbusinesses in our communities overcome these financial obstacles? It might take a community effort. 

Community Microbusiness Funding Ideas

Here are some community-based microbusiness funding programs that we have seen work in small and rural communities. Why not yours?

• Local Microloan Funds: Collaborate with local banks and credit unions to create tailored microloan programs.

• Government Grant Programs: As a community, pursue federal and state grants to support local microbusiness funding.

• Crowdfunding Support: Provide microbusinesses with guidance and promotion to help them raise funds through crowdfunding platforms.

• Community Microgrant/Microloan Fund: Create a local fund, powered by donations from businesses, organizations, and community members, to support startups or expansions.

How SmartStart Helps Microbusiness Funding

SmartStart can help both the community organizations and the entrepreneur when it comes to creating viable funding options and securing that funding.

• Business Planning: Our workshops connect microbusiness owners with experienced mentors to help them create credible business plans and financial projections. This helps microbusiness owners know how much capital they need, plus gives them the proper documentation for many loan programs.

• Financial Education: Most microbusiness owners don't have the finacial experience and knowledge to even know what funding options are available to them. We seek out experts for our workshops that can educate them on their options, as well as other financial aspects of business ownership.

• SmartStart Dashboard: This tool offers both education and accountability, ensuring recipients of community microgrants or loans are prepared for success. (The Greater Muscatine Chamber Of Commerce And Industry made utilization of the SmartStart Dashboard an application requirement for their community microgrant. Peoria County Illinois uses the SmartStart Dashboard part of the application process of their small business grants.)

• Funding Opportunity Identification: We work with community leaders to identify regional and local funding sources to support microbusiness growth. (This can be part of our ecosystem assessment.)

  
  

What’s Working In Your Community?

We’d love to hear how your community is helping microbusinesses find the funding they need to thrive! Send us an email at info@smartstartcommunity.com.

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