Regardless you are partaking in activities at the R&D or commercialization stage, the Canadian government offers many opportunities for businesses of all types and sizes to acquire funding.
Pertaining to innovation funding specifically, the federal government offers several programs such as IRAP (Industrial Research Assistance Program) and SR&ED (Scientific Research and Experimental Development Tax Incentive Program) to assist businesses in the operations of their company.
IRAP funding is available to small and medium-sized companies with the intention of creating new products and processes that lead to enhanced productivity, new competitive advantages, or innovative research.
The SR&ED program, on the other hand, provides tax incentives/refunds to companies undertaking activities involving innovation or improvements in products and processes. These are both examples of Canadian government grants that provide funding to eligible companies nationwide.
Listed below are a few benefits that outline the significance of not just SR&ED and IRAP funding but Canadian government grants as a whole.
Development of Your Business
Companies that are successful in acquiring funding often find that their strategies align with the preferences of government funding programs. Firms like EVAMAX offer to consult and assist you in developing funding strategies in order to leverage more from Canadian government grants.
The business grants received through these programs can contribute to the development of a company in several ways such as expansion, adaptation and R&D. Often, companies will even seek government grants as a source of seed funding or to generate enough cash flow to cover expenses.
Related: Strategic Innovation Fund (SIF)
Through sources of funding, companies can seek expansion physically, to increase production/efficiency, and in their given market as well. In addition, businesses who receive government grants can utilize this to increase the efficiency of the company’s technology and capital by purchasing or modifying equipment. Through expansion and adaptation, a company can discover new products and processes that positively contribute to the business’s development.
Increasing the Potential of Your Outcomes
By acquiring government funding, businesses can improve and increase the potential of their outcomes. The incorporation of additional activities within a company, such as new and better equipment, increases project capacity and helps to avoid congestion created by production inefficiencies.
In other words, the Canadian government grants can dispose of inefficiencies that would otherwise have been impossible to do so without funding. Even if a company does not use the funding to introduce additional activities and assets, companies can expand the degree to which a current strategy is being deployed instead. For example, productivity can be increased by repairing a damaged machine, not necessarily purchasing a different one.
Through the potential increases in productivity and efficiency, it can also be expected that these government grants can reduce the timelines of projects. Government funding gives companies the ability to react to market trends quickly and make the most out of their product and processes. Time is a crucial aspect of the growth and success of a company. Canada business grants assist in maximizing this intangible element whenever possible.
Experimenting and Identifying Risks
The process of seeking grants and funding can have benefits and provide important insight to companies about the operations of their business. Talking to Tax Incentives/Grants Adviser helps companies identify applicable grants to mitigate potential risks of their business in pursuing experimental/new projects.
For example, SR&ED consultants at EVAMAX can increase the return of claims by helping to identify the technical approach a business should use when applying for grants. With the information provided, we are often able to maximize a company’s eligible benefits by using an approach or outlook of the company that was possibly not seen by those internally.
All in all, there are significant benefits to acquiring government grants that many Canadian companies do not take advantage of. Through government funding, companies can experiment, adapt, and choose the plan they deem as most suitable to their company.
Learn more about the federal grants and funding programs your company is qualified for. Contact us or dial 1-877-711-7733.