Due to the government’s strategic priorities and economic goals, specific industries in Canada have more access to grants than others. Each year, the federal budget outlines the sectors deemed essential for driving innovation, sustainability, and growth, which heavily influences the availability of funding programs.

Manufacturing, technology, cleantech, and food processing are among the most supported industries, as they are key contributors to the Canadian economy. Through various grants, the government encourages businesses in these sectors to innovate, adopt sustainable practices, and scale their operations. 

While these industries often receive targeted funding, small businesses across all sectors can still access industry-agnostic grant opportunities.

Why are some industries more grantable than others?

There are a number of factors that influence which industries have more available grants over others. 

The key driver is the government of Canada. Every year in April, the Canadian government announces its annual budget. This budget encompasses the government’s priorities, which impact many things, including the types of launched grants. 

The Canadian government aims to support industry sectors vital to driving innovation and economic growth. One approach to achieving this is by providing non-dilutive funding to small and medium-sized enterprises (SMEs), the largest professional group in the country. Some industries may have access to more grants than others, as they are recognised as key contributors to the Canadian economy.

What industries is the government supporting?

Now that we know the rationale behind the industry-segmented grant programs, we can talk about the industries themselves! There are four segments that the government heavily supports through various grant programs: Manufacturing, Technology, Cleantech, and Food processing.

Manufacturing

Canada’s manufacturing sector is among the most diverse, encompassing a wide range of industries, including machinery, automotive, aircraft, consumer goods, electronics, and more. With 1.74 million Canadians working in manufacturing, it’s an important part of the country’s economy.

To increase their scope of applying for grants in this sector, businesses should focus on identifying the types of projects they are most interested in, such as innovation, sustainability, or workforce development. Aligning with the specific criteria set out by grant programs such as economic impact, environmental benefits, or technological advancement can significantly improve their chances of success. Additionally, planning before grant launches by understanding application deadlines, preparing required documentation, and building strong project proposals is essential to seizing funding opportunities effectively.

Technology

The technology sector in Canada is a fast-moving and always-evolving industry that plays a significant role in driving the country’s economy. This sector encompasses a wide range of technologies, including information and communications (ICT), biotechnology, and advanced manufacturing. As a major employer, the technology sector engaged 1.9 million Canadians as of 2021. It is supported by a robust ecosystem of research and development (R&D) institutions, incubators, accelerators, and grant programs.

Businesses looking to qualify for technology-related grants in Canada must meet specific criteria, such as aligning with the program’s objectives, demonstrating innovation potential, and knowing their Technology Readiness Level (TRL) to match the funding scope. Most grant programs in this sector typically cover 35%-50% of eligible project costs, providing substantial support for R&D, commercialisation, and scaling initiatives.

To navigate the application process effectively, businesses can rely on a variety of supports, including detailed program guidelines, consultation services, and expert resources to craft competitive applications. Paying close attention to the criteria and preparing comprehensive, well-structured proposals can significantly enhance the likelihood of securing funding.

Cleantech

Canada’s cleantech sector is a dynamic and rapidly expanding industry dedicated to developing innovative technologies that promote environmental sustainability. This sector encompasses a broad spectrum of areas, including renewable energy, energy efficiency, water treatment, waste management, and carbon management. Canadian companies are actively engaged in creating solutions to address pressing environmental challenges, contributing to a more sustainable future.

The Canadian government recognises the vital role of cleantech in driving economic growth and environmental stewardship. Various funding programs and grants are available to support this sector to assist businesses in research and development, commercialisation, and scaling of clean technologies. For instance, organisations like Natural Resources Canada and Innovation, Science and Economic Development Canada offer funding opportunities tailored to cleantech initiatives.

Businesses seeking to leverage these funding opportunities can benefit from consulting services specialising in grant procurement for clean initiatives and technology. By aligning their projects with government priorities and sustainability goals, Canadian cleantech companies can access a range of financial supports designed to propel innovation and contribute to a cleaner, more sustainable future.

Agriculture/Food Processing

Agriculture and food processing grants are becoming a popular way to support businesses in these industries. These grants help small businesses promote locally grown and made products, boosting their visibility and sales.

Small businesses can leverage these grants by using the funding to improve their branding, marketing, and product awareness. For example, you can develop better packaging, participate in trade shows, or run promotional campaigns highlighting their local roots.

By aligning projects with grant goals, such as promoting local products and contributing to the local economy, small businesses can access funding to grow and reach more customers, making it a valuable opportunity for those in the agriculture and food processing sectors.

How is the government supporting key industries?

The federal government supports these industries through various organizations. These organizations have specific mandates to provide funding to businesses to help them develop and commercialize new products, adopt new technologies, grow their operations, and contribute to a more sustainable future. Some of the key federal organizations include: 

FedDev

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) 

Natural Resources Canada (NRC) 

Agriculture and Agri-Food Canada (AAFC) 

Innovation, Science and Economic Development Canada (ISED)

Pacifican

This list is certainly not exhaustive. Many other federal-level granting bodies offer support to small businesses in Canada.

Even though these industries tend to have more grants available, it doesn’t mean you can’t get grant funding if you don’t fall under these categories. Many grant programs are industry-agnostic and serve to support small businesses of all types.

Where can I get support with grant funding?

If you’re looking to secure grant funding for your small business, then you’ve come to the right place!
At Granted Consulting, we help clients across Canada leverage grant funds so they can grow their businesses without the stress and worry of grant management. To get connected with one of our Grant Angels, head over to our Grant Calculator.