Scholarships offer plenty of benefits and not just for the recipients. A STEM (Science, Technology, Engineering, Math) business can yield several advantages. So while it does good for the community, the promotional opportunities and other benefits are endless for your STEM business.
If you’re thinking about offering a scholarship, here’s why you should and how you can get started.
Why Scholarships Are Important for STEM Businesses
Scholarships are the perfect opportunity for STEM businesses to offer financial support to students who need help paying for college. Offering these funds can enable students to gain an education. However, they may not have access to funding in other ways. So, you’re rewarding a deserving student with that ability to receive higher education. In turn, it helps them pursue a college degree that may not have been possible before.
While it’s beneficial to help others further their education, companies get to serve the community for branding and reach purposes. Here are other reasons to consider offering a scholarship.
Encourages Diversity
Scholarships serve as a tool for closing the gender and racial gap in STEM careers. Many women and people of color are typically deterred from entering the STEM field because they face discrimination in the sector. According to a study by Microsoft, only 7% of women graduated with a STEM degree in 2016 — compared to 15% of men.
Hispanic workers are highly underrepresented in this field — only 8% of STEM employees make up the entire workforce. Furthermore, only 9% of Black employees work in the STEM field.
STEM businesses that offer scholarships can begin to address the complex issue of gender and racial gaps in this predominantly white male industry. STEM scholarships are most effective since it encourages the growth of women and people of color to participate in the workforce. Plus, it provides one-on-one mentorship and a foot in the door with top STEM companies. Lastly, it’s a way for companies to enhance the skills of their future employees. So, it’s a win-win for everyone.
Establishes Brand Awareness
Offering scholarship assistance can help STEM businesses build their brand. When students seek a scholarship, they often get to know the companies when an application is submitted. The same results occur when it helps the community as a whole. Everyone in the surrounding area gets to learn more about your STEM business.
With that in mind, this helps the company to build its branding and reputation. STEM businesses often get recognition for their efforts. As a result, it helps your name spread and creates more engagement opportunities with prospective customers.
Encourages Philanthropy Within a STEM Company and Business Growth
Offering red head scholarships may play a role in social responsibility. This opportunity helps companies find ways to support the community and help them to become a leader as a result. STEM businesses that wish to focus on charities also teach them philanthropy. When they offer student funding, the recipient may be grateful for it. In turn, the company will see the value, learn the importance of giving back and may be more willing to offer others the same opportunities in the future.
Once a community learns about the company’s opportunities they offer, this may help increase product sales and website downloads. As a result, the company has a chance to gain new customers and open the door for further communication with potential customers.
How To Start a Scholarship Program for Your STEM Business
To help you get started in offering a scholarship program, follow these steps.
1. Find Your Purpose and Plan
Financial planning and structuring can help you devise a framework for other considerations later. You’ll want to create an outline to eliminate research and development of infeasible costly programs or timetables.
So, your first step is to decide what type of scholarship you’ll be offering and how best to allocate the funds. You might also consider if you’ll use this opportunity to increase tax breaks for your business. Then, you’ll want to determine if your scholarship will be geared specifically toward an underprivileged part of the community.
2. Establish a Timeline
After you’ve established your purpose and how you’ll acquire funding, your next step is to set the launch date. You’ll want to consider which fiscal year and where the taxation will hit it. Additionally, you should consider the process for application. Will the student submit an essay? If so, how will they do it? Should they apply in person or will it be through a digital application software?
Scholarship funding typically takes a year of planning because businesses usually raise the money through fundraising. Plus, they have to advertise it to receive applicants. So if you plan to give out scholarships during the fall semester, plan to iron out the details in the previous summer.
3. Determine the Scope and Method of Award
Sometimes smaller scholarship contributions work best because many students believe larger ones aren’t worth the effort. Some businesses get more applicants when they offer a $500 scholarship every other month rather than a few thousand every year.
However, it all depends on your philanthropic goals, tax necessities, funding strategies and PR angle you need to maximize. Moreover, you’ll need to determine how to award the scholarship. Will you be giving it from within the company or mail it out by check? Who will offer the scholarship and will you make an event?
These are the evaluations you’ll need to consider when launching your scholarship program.
4. Set the Terms
Students can be intelligent but also naive. You need to set the scholarship’s terms to protect your business from inexperience and the students’ behavior. If they’re allowed to obtain a scholarship on bad behavior, it can negatively reflect your company.
Consider incorporating terms for students to abide by to receive continuing support. Of course, if they are only receiving a one-time scholarship, this may be less of a concern. Depending on the scope of the award and how highly it’s publicized will determine how strict the terms will be.
Ways STEM Businesses Can Promote A Scholarship Program
Once you’re ready to launch your scholarship, you’ll need to promote it effectively to gain applicants. Here are several ways to promote it:
- Launch an email campaign.
- Use social media and targeted ads.
- Do media and PR outreach.
- Generate blog content and link building.
- Reach out to high school admissions and counselors.
- Build a website or landing page for the scholarship.
- Network and talk about the scholarship through friends, coworkers, family, local events and colleges.
You’ll want to promote your scholarship for many reasons. For one, it can help you reach more quality and qualified applicants. Plus, new scholarships can become lost in a sea of thousands of existing scholarship programs. Promote your scholarship effectively with the methods listed here so you can remain connected to students and make college affordable.
Doing Good Through Your Business
Success in scholarship outcomes is most likely to come from proper planning and consideration. Every step you make will have its unique qualities, but remember your reason for doing good in the community. When you commit through purpose, your scholarship program will be worth its effort. In the end, you’re giving students the possibility to receive higher education.
Eleanor is editor of Designerly Magazine. Eleanor was the creative director and occasional blog writer at a prominent digital marketing agency before becoming her own boss in 2018. She lives in Philadelphia with her husband and dog, Bear.
