Youth Business Grants in Canada: Current Grants + Tips for Applying
Youth entrepreneurs in Canada are bringing fresh perspectives, innovative ideas, and enthusiasm to the business world. However, starting and growing a business as a young entrepreneur often comes with unique financial and experiential challenges. Business grants specifically designed for youth provide non-repayable funding to support their entrepreneurial journey. These grants aim to empower the next generation of entrepreneurs, fostering creativity, skill development, and economic participation among Canada’s youth.
Key Takeaways
- Business grants are non-repayable funds aimed at helping young entrepreneurs launch or expand their businesses.
- Funding is provided by federal and provincial governments, as well as non-profit organizations.
- Eligibility criteria often include age requirements, a solid business plan, and alignment with specific grant objectives.
- Grants can be used for startup costs, training, marketing, innovation, and community-focused projects.
- Alternatives to grants include loans, mentorship programs, and equity investment opportunities.
What is a Business Grant?
A business grant is a financial award provided by government agencies, non-profit organizations, or private entities to support businesses without requiring repayment.
For young entrepreneurs in Canada, these grants are specifically designed to address barriers like limited capital or experience, enabling them to start or grow their businesses successfully.
Grants for youth entrepreneurs fall into four primary categories:
- Activity Grants: These focus on funding specific business activities, such as marketing, product development, training, or technology adoption. They aim to support key functions essential for business growth and innovation.
- Audience Grants: Targeted at particular groups, including youth, these grants aim to foster inclusivity and address the unique challenges faced by specific demographics.
- Industry Grants: Tailored to businesses within certain industries like technology, arts, or clean energy, these grants align with national or regional priorities for sectoral growth and innovation.
- Regional Grants: Designed to stimulate economic development in specific areas, regional grants address challenges unique to provinces, territories, or underserved communities.
For youth entrepreneurs, these grants collectively provide opportunities to overcome financial barriers, nurture innovative ideas, and contribute to Canada’s dynamic economic landscape.
Business Grants vs Business Loans for Young Entrepreneurs in Canada
Both business grants and loans are valuable funding options, but they differ significantly in terms of benefits and obligations. Grants provide non-repayable funds, making them highly attractive for young entrepreneurs who may lack financial resources. However, grants are competitive and often require detailed applications and adherence to specific guidelines.
Business loans offer greater flexibility but must be repaid with interest, introducing financial risk. Loans are better suited for substantial investments or scaling operations, especially for youth entrepreneurs ready to take on financial responsibility.
Comparison: Business Grants vs Business Loans
| Feature | Business Grants | Business Loans |
|---|---|---|
| Repayment Required | No | Yes, with interest |
| Financial Risk | Low | High |
| Eligibility | Specific and competitive | Based on creditworthiness and business plan |
| Usage Restrictions | Restricted to grant objectives | Broad usage |
| Application Process | Rigorous and detailed | Straightforward, depending on lender |
Youth entrepreneurs should evaluate their financial capacity, business needs, and goals when choosing between grants and loans. Grants are ideal for specific projects, while loans may suit broader financial needs.
Types of Young Entrepreneur Grants in Canada
Federal Government Grants for Youth Entrepreneurs
The federal government provides grants to empower youth entrepreneurs by fostering innovation, skill development, and economic participation. These grants typically fund activities such as business startup costs, training programs, technology adoption, and research and development. By supporting industries like technology, arts, and sustainable development, federal grants aim to unlock the potential of young entrepreneurs and drive Canada’s economic growth.
Provincial Government Grants for Youth Entrepreneurs
Provincial governments offer grants tailored to address regional needs and support youth-led businesses. These grants focus on activities like business expansions, community projects, and industry-specific initiatives. Provincial grants aim to boost local economies, enhance youth participation in entrepreneurship, and address challenges unique to specific regions. Industries supported often reflect the province’s priorities, such as tourism, green energy, or agriculture.
Non-Profit Business for Youth Entrepreneurs
Non-profit organizations provide grants designed to empower young entrepreneurs, foster social innovation, and promote equitable access to resources. These grants often support activities like mentorship programs, leadership training, and social impact projects. Non-profit grants are ideal for youth entrepreneurs focused on community development, environmental sustainability, or cultural initiatives, helping them create meaningful and lasting contributions.
Eligibility Criteria for Young Entrepreneur Grants in Canada
Eligibility criteria for youth-focused business grants often include:
1. Age Requirements
2. Business Stage
3. Innovation and Impact
4. Industry Focus
5. Location
6. Documentation
Applying for Youth Business Grants: Top 5 Tips
1. Research Opportunities
2. Develop a Strong Proposal
3. Showcase Your Vision
4. Prepare Thorough Documentation
5. Leverage Support Resources
Alternatives to Youth Entrepreneur Grants in Canada
Business Loans & Credit for Youth Entrepreneurs
Youth entrepreneurs can access loans designed specifically for young business owners. Programs like the Canada Small Business Financing Program offer favorable terms, including low interest rates and flexible repayment schedules. Loans can provide the capital needed for equipment purchases, operational expenses, or scaling efforts. Establishing a good credit history and preparing a robust business plan are critical steps to securing these loans.
Startup Programs for Youth Entrepreneurs
Startup incubators and accelerators provide a combination of funding, mentorship, and networking opportunities tailored for youth. These programs help refine business models, connect entrepreneurs with investors, and offer hands-on support for launching and growing businesses. Many startup programs also provide access to industry experts and potential partners, enhancing the overall entrepreneurial experience.
Equity Investment Programs for Youth Entrepreneurs
Equity financing through angel investors or venture capital firms is a viable option for youth entrepreneurs with high-growth potential. In exchange for equity, these programs offer significant funding and strategic mentorship to help businesses achieve sustainable growth and scalability. While equity investment requires giving up partial ownership, it provides long-term benefits through financial resources and experienced guidance.
Young Entrepreneur Grants in Canada: Current Grants Available
In the sections below you’ll find a sample of the federal and provincial grants currently available for young entrepreneurs in Canada:
No specific amount has been identified.
Grant
Description:
Persons with disabilities may have specific needs in their workplace. In some cases, the work environment must be adapted according to the person’s abilities to meet the requirements of the job. In these situations, it is possible to reimburse the employer for certain costs necessary for the integration or retention of this clientele.
$3,000
Grant
Description:
Summer Company is an amazing opportunity for young entrepreneurs to run their own business over Summer. Participants can expect to receive:
start-up money to kick-off a new summer business
advice and mentorship from local business leaders to help get the business up and running
Learning how to run your own student business is one of the best summer jobs you can have. You get to be your own boss while learning what it takes to manage a business. You’ll develop skills in areas such as sales, marketing, bookkeeping, customer relationship management, networking and more
N/A
Subsidy, Grant
Description:
The Wage Subsidy program can help you make your application more attractive and make it easier for an employer to recruit you. You will increase your chances of finding sustainable employment or acquiring skills that will be useful in another job.
$5,400
Grant
Description:
The Veterinary Student Placement Program provides veterinary students with applied learning opportunities and gives them experience in rural Nova Scotia’s agriculture industry.
$475 weekly $370 weekly The financial assistance you receive depends on your situation and will be determined at the time of your registration. You may also be entitled to reimbursement of certain expenses, such as child care costs; transportation costs; training costs; accommodation costs, if you have to travel to follow the training. “
Subsidy
Description:
If you want to take training to find a job, you could receive financial assistance by participating in the Workforce Training Measure.
Varies by project and applicant (for more check the detailed Calculation of financial aid for each eligible project devided by percentages.)
Grant
Description:
This component helps develop the general and advanced skills and knowledge of professionals and other stakeholders in the biofood sector on various themes linked to climate issues.
No fixed amount
Grant
Description:
Provide assistance in the form of coaching, technical advice and financial support to help eligible individuals start a business.
no fixed amount
Subsidy
Description:
PEI employers who hire students during summer may qualify for the employee wage subsidy offered through two separate student employment programs:
1. Jobs for Youth Program
This program supports students aged 15-29 working 8-12 weeks during summer and students must be returning to school in the Fall.
2. Post-Secondary Student Program
Supports full-time post-secondary students working a minimum of 12 to a maximum of 18 weeks during the summer. The exact number of weeks designated per placement will be based on factors such as but not limited to: position, wage, and the likelihood of opportunity for experiential learning. Students must be entering or returning to full-time post-secondary studies in the Fall.
$675,000
Grant
Description:
Increase awareness of the agri-food sector among the population and promote the quality of livestock by supporting agricultural exhibitions and sector exhibitions in Quebec.
No specific amount was identified.
Grant, Loan, Investment
Description:
Promote awareness among college students of French-language songs by supporting dissemination activities (professional shows and activities designed specifically for this clientele).
$1,750,000
Grant
Description:
The Recreation Partner and Facility Investment Program (RPFIP) aims to foster healthy, vibrant active communities throughout Edmonton.
$50,000
Grant
Description:
This component aims to encourage the production of journalistic information content by young people and/or intended for a young audience.
$50,000
Grant
Description:
This component aims to develop young people’s critical thinking with regard to media and information.
No funding involved
In-Kind Support
Description:
Have you recently left full-time postsecondary studies and started a new business in Ontario? If yes, apply for the One-Year OSAP Grace Period for Entrepreneurs to get more time before you must start making payments on your OSAP loans.
You have six months after leaving full-time studies when you don’t have to make OSAP loan payments. This is known as your six-month grace period.
If your six-month grace period has not yet ended and you are the owner or joint owner of an eligible new business, you may be eligible for a six-month extension to your existing grace period. This means you would get an extra six months before you must start repaying your Ontario Student Loan and/or the Ontario portion of your Canada-Ontario Integrated Student Loan issued through OSAP.
$15,000
Grant
Description:
Mitacs Accelerate Entrepreneur provides early-stage support to postdoctoral fellows (PDF) and graduate student entrepreneurs. Accelerate Entrepreneur funds student entrepreneurs to further develop the research or technology at the core of their business when hosted by an incubator facility. This helps student entrepreneurs to take real, meaningful advantage of the supports provided by the incubator, with the goal of commercializing the technology, product, or service rapidly. In a nutshell, they get paid to grow their company and get to market faster.
$12,180
In-Kind Support, Subsidy
Description:
This initiative aims to increase the interest of students at the Faculty of Veterinary Medicine of the University of Montreal in the practice of veterinary medicine in the Quebec biofood sector. It also aims to encourage students to practice in one of the designated regions.
$3,000
Grant
Description:
The program teach youth the practical skills for starting up a successful business during the summer break. We then coach and fund them to run it.
Varies depending on the specific call and project requirements.
Grant
Description:
The Government of Quebec offers financial support to Quebec organizations for the implementation of international cooperation and solidarity projects. This support is offered in particular according to the priorities of its international action set out in the International Vision of Quebec .
$50,000
Grant
Description:
The Call for Indigenous Cultural Development Projects program aims to increase the offer of activities, services and goods that significantly contribute to the Ministère’s objectives of strengthening and developing Indigenous cultures and communications. It also aims to meet the objectives of the 2022-2027 Government Action Plan for the Social and Cultural Wellness of the First Nations and Inuit.
Financial assistance granted by the Ministère makes it possible to conduct, over a specified period, defined actions that cannot be automatically renewed. The various calls for projects covered by the program include specific provisions according to the project type.
$125,000
Grant
Description:
The purpose of this component is to encourage organizations operating in Quebec to take concrete action to increase mastery of appropriate French terminology in workplaces associated with priority sectors of activity.
It supports projects to promote French which aim to increase knowledge and use of quality French terminology specific to a field of activity.
No specific amount was identified.
Subsidy
Description:
The Wage Subsidy program allows employers to obtain financial assistance to support the reception and employment integration of people of determination, but who face obstacles in finding employment.
$2,000,000.00
Loan
Description:
FCC provides financing to young entrepreneurs under 40 to start or expand their business. They can purchase shares in, buy, or improve an agricultural or food-related business, and take their dream business to the next level.
No fixed amount
Loan
Description:
If you’re looking to transfer farm assets or you’re a young farmer looking to build your farm, the Transition Loan can help make it happen. It allows you to make payments so you can manage your cash flow or build equity quickly – the choice is yours.
$10,000.00
Grant
Description:
The Youth Innovation Component encourages youth to find accessibility barriers in their communities. They work with local organizations to improve accessibility and safety in community spaces and workplaces.
No fixed amount
Grant, Subsidy,
Description:
If you are an immigrant and have no work experience in North America, the Program to Assist with the Integration of Immigrants and Visible Minorities into Employment (PRIIME) could help you. It could give you the opportunity to acquire initial work experience in Quebec in your field of expertise.
Your new employer may receive wage support and a subsidy for additional costs, such as
the salary of an escort;
training costs;
the implementation of specific integration activities.
$21,500.00
Subsidy
Description:
Digital Skills 4 Youth PEI’ (DS4Y PEl) is a new internship opportunity for Island youth that provides financial support to Island businesses or non-profit organizations who will act as ‘Intern Host Organizations’ (IHOs).
$50,000.00
Grant
Description:
Digital Greenhouse is a digital innovation initiative for Canadian individuals, groups and organizations. It supports short-term projects that leverage digital technology to address sectoral and digital challenges, including:
1. the development of new digital tools and solutions that increase the resilience, sustainability, and discoverability of the arts sector,
2. the development of sector-wide and cross-sector collaborations, partnerships, and networks to support innovative digital business models, revenue models and monetization strategies,
3. sectoral approaches aimed at strategically increasing the digital/data literacy and ongoing digital transformation of the arts sector,
4. addressing challenges and exploring digital solutions related to accessibility, equity, diversity, decolonization, social justice, and climate responsibility created by, or relevant to, the digital world,
5. addressing challenges and exploring solutions related to the lack of access to digital infrastructure for remote regions and Northern and under-represented communities.
No specific amount was identified.
Grant, Subsidy
Description:
Meeting the needs in attraction, integration and retention of talent, among others.
Promote, develop and consolidate a culture of science and innovation.
Improve the competitiveness and productivity of businesses.
Develop new markets, new partnerships or new collaborations.
$8,000
Grant
Description:
Murals are an important form of public art that can have a profound and positive impact on a city and its well-being.
No specific amount has been identified.
Grant
Description:
This program offers technical assistance to employers who are considering implementing collective dismissals. Besides, it provides financial support to help cover the expenses associated with running the committee and carrying out reclassification activities.
$3,000
Grant
Description:
The Summer Company program (opens in new window) supports eligible young student entrepreneurs, aged 15 to 29, looking to launch and operate a small business during the summer.
No fixed amount
Loan
Description:
MASC’s Bridging Generations Initiative offers Flexible Financing to young farmers to assist them through the critical purchase and start-up period of farm operations.
No funding involved
In-Kind Support
Description:
The Booster Early Adopter Program provides entrepreneurs and post-secondary education students with civic ideas/problems and an access point to connect with the City as an early adopter of new technologies and applications. Prototype ideas, that strategically align with corporate priorities and address civic challenges, can then be tested in our living lab for civic innovation, and if successful, scaled/deployed into municipal operations and services, and move through the continuum of ecosystem support.
$1,500
Grant
Description:
The Agriculture Skills Student Bursary Program introduces agriculture to students as a career option and helps address the labour gap for agriculture producers in Nova Scotia.
$106,666
Grant
Description:
Mitacs Accelerate Fellowship provides a long-term funding and internship option for master’s and PhD students. Recipients can also access professional development training that helps them ensure project success and gain in-demand career skills.
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Maurice
