Funding for young entrepreneurs in Canada

Young people starting a business in Canada usually find funding as a start-up loan paired with a mentor, not as a free grant. Futurpreneur offers that across the country, and in Ontario, Summer Company helps students run a business over the summer while Starter Company Plus offers training, mentoring and a grant to new business owners. Each program sets its own age range and rules, so check the program page; the programs for youth and the funding check are good places to begin.

What is Futurpreneur?

Futurpreneur is a national not-for-profit that helps young entrepreneurs start or buy a business. Its core start-up program combines:

A start-up loan, with more financing available through its partnership with BDC.
A mentor who works with you one-on-one for the first stretch of running the business.
Resources and support for writing a business plan and a cash flow forecast.

Because it is a loan, you repay it. It is meant for young people starting out, who often find a first bank loan hard to get. You will need a business plan, a cash flow forecast and an application in its online portal, and a team member works with you along the way. It takes applications through the year. Check the program page for the age range, citizenship rules and loan details.

What is Ontario's Summer Company?

Summer Company is an Ontario program for students who want to run their own business over the summer instead of taking a summer job. It offers:

Mentoring and business training from a local small business centre.
A grant, with part paid at the start and the rest after you finish the program.

You apply through an Ontario Small Business Advisory Centre, which will ask for a business plan and a cash flow forecast. Applications are taken in a set window each year, before the summer, so watch closing soon and check the program page for dates. Typical summer businesses include lawn care, tutoring, painting, crafts and online sales.

What is Starter Company Plus?

Starter Company Plus is an Ontario program for people starting, expanding or buying a small business. It isn't limited to young people, but it suits many young founders. It offers:

Business training in planning, marketing and finances.
Mentoring from local advisers.
The chance to apply for a grant after the training.

You will usually need to put some money or in-kind support of your own into the business, alongside the grant. Apply through your local Small Business Advisory Centre. The guide to funding in Ontario covers other Ontario programs.

Why does mentorship matter so much?

Many youth programs tie the money to a mentor or training, and that is deliberate. A first business can stall on things a mentor has seen many times: pricing too low, running out of cash, or not knowing which licence or insurance you need. When you compare programs, give the support as much weight as the money:

Ask who your mentor will be and how often you'll meet.
Ask what the training covers and whether it's online or in person.
Keep using local help after the program ends. Small business centres, libraries and community organizations often offer free advice.

What else can young people use?

General start-up programs. Young entrepreneurs can apply to any program their business qualifies for; see funding to start a business and the start-up topic.
Programs for other groups you belong to. Some programs are a set-aside for women, Indigenous or Black entrepreneurs, or for newcomers. See starting a business as a newcomer.
Summer jobs and work placements. If you're not ready to start a business, hiring programs help employers pay young workers; see hiring a student with a wage subsidy.

How do I write a strong application?

Start with the problem you solve and who will pay for it.
Do a simple cash flow forecast. Month by month: what comes in, what goes out.
Be specific about the money. List what you will buy and why; the guide to a grant project budget helps.
Ask for feedback from an adviser before you submit. See how to write a grant application.
Don't spend before approval. Many programs won't cover earlier costs; see apply before you spend.

Frequently asked questions

Are there grants for young people to start a business?

A few, such as Summer Company and Starter Company Plus in Ontario, usually tied to training and mentoring. Most youth start-up funding elsewhere is a loan with a mentor. See small business grant myths.

What age do I have to be?

Each program sets its own age range, and some have no upper limit. Check the age range and other rules on each program page.

Do I have to repay Futurpreneur?

Yes. Futurpreneur offers a start-up loan with mentoring, not a grant. Check the program page for its terms, and see the difference between grants, loans and tax credits.

Can I run a summer business while I'm still in school?

That is what Summer Company is for, if you're an Ontario student. Check the program page for who qualifies and when intake opens.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply. A CanGrant editor hasn’t reviewed this article yet.