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5 Small Business ideas Which Have Complete Government Support

The government of most countries of the world usually support some businesses as a way of encouraging investors to invest in the industry. In the United States, the government assists businesses in two distinct ways: financial help and administrative.

The Small Business Administration (SBA) is a major way government assistance is made available to small businesses. The SBA induces commercial banks to make loans by guaranteeing to pay a portion of defaulted loans. In the United States, there are so many industries receiving government assistance, and some of them are utilities and power generation, aerospace and military contracting, agriculture, IT, and transportation.

Each of these business sectors receives billions of dollars annually from the government. Having said that, here are top 5 small business ideas that have complete government support in the United States.

Top 5 Small Business ideas Which Have Complete Government Support

  1. Solar Energy Related Business

One of the small business ideas which have complete government support in the United States is a solar energy-related business.

It could be solar panel repair and installation, solar panel manufacturing, solar farms et al. Over the years, the United States has made giant strides in positioning itself as a leader in solar energy production, along with China, the EU, Japan, and Vietnam.

Today, over 3 percent of U.S. electricity comes from solar energy in the form of solar photovoltaics (PV) and concentrating solar-thermal power (CSP). One of the ways the US government supports solar energy-related businesses is through the Solar Tax Credit.

The Solar Tax Credit, which is also known as the Solar Investment Tax Credit (ITC), is a federal initiative to support the growth of the solar industry in the United States. Since the ITC was introduced in 2006, the solar industry in the United States has grown by 10,000%.

A report released by MISI shows that non-hydro renewable energy (primarily wind and solar) benefited from $158 billion in federal subsidies, or 16% of the total, largely in the form of tax policy and direct federal expenditures on research and development (R&D).

Please note that the United States government promotes renewable energy via financial Incentives such as grants, loans, rebates, and tax credits—which are provided in some states to encourage renewable energy development.

Why the US Government Supports Solar Energy-Related Businesses

The US government supports solar energy-related businesses because of its environmental and economic benefits. Renewable energy sources play a vital role in securing sustainable energy with lower emissions. Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution is a win-win for humans and the environment.

  1. Farming Business (Agriculture Relates Business)

Another business that you can start and enjoy US government support is a farming-related business. There are several niche areas you can choose from if you want to start a farming business in the United States. It is important to note that the U.S. government created farm subsidies during the Great Depression to offset the surplus of crops and low prices of both crops and livestock.

The government protects farmers against fluctuations in prices, revenues, and yields. It subsidizes their conservation efforts, insurance coverage, marketing, export sales, research, and other activities. Federal aid for crop farmers is deep and comprehensive.

Why the US Government Supports Farming Businesses (Agriculture Related Business)

One of the major reasons why the US government supports farming businesses is for food security. Aside from that, a strong agricultural economy brings social progress by increasing productivity, employment, and income. The subsidies the US government provides to farmers protect the nation’s food supply. Farms are susceptible to pathogens, diseases, and weather. Subsidies help farmers weather commodities’ price changes.

  1. IT Related Business

Aside from the United States of America, most countries of the world support their technology sector for obvious reasons.

In economics, it is widely accepted that technology is the key driver of the economic growth of countries, regions, and cities. Technological progress allows for the more efficient production of better goods and services, which is what prosperity depends on.

The United States government facilitates innovation in the IT sector by collaborating on advanced R&D and product development, usually at the precompetitive stage but increasingly at the competitive stage as well. Often a government agency coordinates R&D efforts or innovative technology applications.

Government has a variety of policy tools for increasing the rate of return for new technology and encouraging its development, including direct government funding of R&D, tax incentives for R&D, protection of intellectual property, and forming cooperative relationships between universities and the private sector.

Why the US Government Supports IT-Related Businesses

There are loads of reasons why the US government supports IT-related businesses and some of them include encouraging development, creating jobs, generating income for the country, and safe reliance.

Plus, technology has always fueled economic growth, improved standards of living, and opened up avenues to new and better kinds of work. Recent advances in artificial intelligence and machine learning, which brought us Watson and self-driving cars, mark the beginning of a seismic shift in the world as we know it.

  1. Transportation Related Business

Another business idea that usually attracts US government support is transportation-related business. There are various niche ideas in the transportation industry that an entrepreneur can choose from.

In the United States, the Federal and state governments influence the transportation industry through legislation, infrastructure spending, safety regulations, and funding. For example, the federal government has long provided significant financial support for public transportation. Federal spending accounted for about one-sixth of the $79 billion in public spending on transit in 2019.

Why the US Government Supports Transportation-Related Businesses

The United States government supports transportation-related businesses because effective transportation investments lower the cost of moving people and goods. This increases economic productivity, which roughly can be measured as the output of goods and services per dollar of private and public investment. Please note that without an efficient transportation system, economies stagnate.

  1. Environmental Related (Consulting) Business

Lastly, another business idea that will attract support from the United States government is any environmental-related business or better put environmental consulting business.

The environmental consulting industry is made up of firms that offer advice to businesses and governments on environmental issues, such as controlling environmental contamination from pollutants, toxic substances, and hazardous materials.

Environmental consultants identify problems, measure and evaluate risks and recommend solutions. A standard environmental consulting firm employs a multi-disciplined staff of scientists, engineers, and other technicians.

Why the US Government Supports Environmental Related Businesses

The reason why the United States government supports environmental-related businesses is simply to encourage people to protect the environment. This is because a clean environment is essential for healthy living. If citizens don’t care about their environment, the environment will become polluted with contaminants and toxins that hurt the health of citizens.

Air pollution can cause respiratory diseases and cancer, among other problems. So also, environmental-related businesses help to protect our world from global warming.

Global warming is an aspect of climate change, referring to the long-term rise of the planet’s temperature. It is caused by increased concentration of greenhouse gases in the atmosphere, mainly from human activities such as burning fossil fuels, and farming.