By Teri Kirk
Businesses in Ontario secured $1.25 billion from government funding programs in the third quarter of 2014 alone – are you taking advantage of this important source of business funding?
In fact, data compiled by The Funding Portal demonstrate that in the first three quarters of 2014, federal and provincial governments wrote cheques valued at more than $4.7 billion to support business in Ontario.
Of note, government incentives began to flow once again to manufacturers and other businesses in the Province during Q3, following a temporary slowdown in Q2. Manufacturing projects that received the largest cheques focused on job creation and R&D.
While government funding levels across all regions and sectors dropped by almost 27% from $3.6 billion in Q2 to $2.6 billion in Q3 — a substantial seasonal adjustment — Canadian companies were well served by capital markets during the quarter. In fact, venture capital (VC) investment reached $745 million in Q3, a 26% year-over-year increase largely attributable to investments in Canada’s thriving tech and life sciences sectors.
Government funding markets or ‘incentives’ should complement and balance out capital markets as a matter of public policy and, this quarter, you can see those objectives in action. Overall, government funding levels declined as VC increased. And, sectorially and regionally, funding flowed to manufacturing in Ontario during a difficult period.
If your business is seeking government funding, keep in mind that meeting the government’s policy objectives (i.e. creating jobs and stimulating exports and innovation) is crucial to writing a successful application.
Also consider applying to more than one fund at a time.
See the interactive version of TheFundingIndex on The Funding Portal.