Governments take up large portion of the economy and it would be wasteful to ignore them. Some entrepreneurs do not like governments or handouts for moral or political reasons. Here is the introduction for the rest.
You can get your hands on government money in a few particular ways. Government issue subsidies, which are straightforward cash-transfers with some conditions. They issue grants, where they require an action to be taken (R&D, increased availability of particular service, etc.).
Governments purchase services or products through public tenders, where providers compete usually on price. In return, governments offer reliable, long-term contracts preferable for small businesses in turbulent sectors. You can look up public tenders on governmental websites.
Lastly, governments offer subsidised loans and guarantees. Subsidised loans are offered by government-link banks and often have lower interest rates than the market rates. Conditions apply.
SME loans are either in sectors government wants to encourage (farming), for young companies and entrepreneurs or for particular technology. Guarantees have similar conditions, they are just a mechanism of decreasing risk for bank and therefore charged interest on the loans.
Dealing with governments has its pros (its a shield against market movements) and cons (it comes with strings attached and lots of bureaucracy). Oftentimes with public money comes also public scrutiny not only in forms of audits (that is to be expected) but media reports.
While accessing government funding is beneficial for business, it's important to tread carefully. Understand the conditions of subsidies and grants, be prepared for public scrutiny, and weigh the pros and cons before making a decision.