- Grant: Non-Reimbursable Support
Definition:
A grant is financial support provided free of charge by an institution or organization to support a specific purpose. For entrepreneurs, this is an important opportunity to start or develop their projects.
Who Provides Grants?
- Public institutions (TÜBİTAK, KOSGEB, Development Agencies)
- European Union programs (Erasmus+, Horizon Europe)
- Municipalities and local governments
- Non-governmental organizations and foundations
Advantages:
- There is no repayment obligation.
- It generally supports start-up ventures.
- Priority is given to projects focused on social benefit.
Points to Consider:
- Application processes can be detailed and time-consuming.
- Documentation and reporting of expenditures are mandatory.
- Resources are limited and periodic.
- Fund: Thematic and Time-Limited Funding Sources
Definition:
Funds are financial resources created for a specific topic or purpose and distributed within a limited time frame. They are typically awarded to projects that meet specific criteria.
Sources:
- National/international development funds
- Thematic program funds (e.g., environment, digital transformation, women’s entrepreneurship)
- Private sector support funds (under corporate social responsibility projects)
Advantages:
- Offers opportunities for entrepreneurs working in a specific field.
- When a suitable fund is found for the project, quite large amounts can be provided.
- May include additional support such as mentoring and training.
Points to Consider:
- The business idea must align with the theme prioritized by the fund.
- It is usually project-based; it does not provide permanent working capital.
- The expenditure plan and impact reports must be prepared in detail.
- Investment: Partnership-Based Growth Capital
Definition:
Investment is when an individual or institution becomes a partner in a venture in exchange for a certain amount of capital. Financial support is provided in exchange for a share of the venture’s potential.
Types of Investment:
- Angel Investment: Support provided by individual investors to early-stage ventures.
- Venture Capital (VC): Investment made by professional funds in ventures with rapid growth potential.
- Crowdfunding: Collecting small amounts of funds from a large number of people via the internet (e.g., Fongogo, Fonbulucu).
Advantages:
- Provides high amounts of financing.
- Offers strategic contributions such as networking, consulting, and market access.
- Accelerates the scaling of the startup.
Points to Consider:
- The shareholder structure changes; the entrepreneur transfers part of the company.
- A strong relationship of trust must be established with the investor.
- Investment expectations are high; profitability and growth plans must be clear.
Recommendations for High School Students: Where to Start?
- Clarify Your Idea: Prepare a business summary explaining what you will do, why it is important, and who it will appeal to.
- Do Your Research: Regularly follow support programs specifically for student projects, such as KOSGEB, TÜBİTAK, and TEKNOFEST.
- Get Mentor Support: Collaborate with guidance counselors, entrepreneurship clubs, and NGOs.
- First Small Funds: School competitions, youth funds, and social entrepreneurship competitions can be ideal for getting started.
- Build a Team: Diversify the skills of the people you work with; this will also attract investors.
Conclusion: Financing, the Right Source at the Right Time
An entrepreneur’s success depends not only on a good idea, but also on finding the right financial resources to bring that idea to life. Grants, funds, and investments—each with different expectations and processes—are accessible resources for high school entrepreneurs with strategic planning. Remember: Financing is not a goal, but a tool. The real value lies in how you use that tool.
High School Entrepreneurs Club is always here to help young entrepreneurs improve their financial literacy and strengthen their projects. Take a step toward sharing your idea with the world, and we’ll walk with you!
