Business Grants - Startup and Small Business Grants In The UK
You will learn everything about:
Launching and growing a business requires funding. Grants are part of the 4 funding options available for startups and small businesses.
Other options are:
- Investors (angel investors, pre-seed investors and seed VCs)
- Business loans
- R&D tax credits
With business grants you will not be giving away equity in your business, and you will not have to pay the money back. It’s probably less costly for a founder in terms of money.
However, securing a grant for your business is not easy. Sourcing the appropriate scheme is very time consuming. And creating an application that matches the requirements can be a real headache taking you away from your day to day.
This guide will take you closer to securing a business grant for your business.
What is a business grant?
A business grant is a financial award provided to a business by a government or other organization. It is typically given to support a specific business activity, such as research and development, expansion, or training.
Business grants can be used to cover a variety of expenses, including salaries, equipment, and supplies. In the UK, business grants are provided by a variety of organizations, including local and national government agencies, charitable foundations, and professional associations.
Businesses may be eligible for a grant if they meet certain criteria, such as being a small business or operating in a specific industry.
To apply, you will typically need to submit an application that includes information about your business, your plans, and your financial needs.
Where can I find business grants?
Government website
The first ressource is simply the government website. Although the directory is still quite difficult to navigate, they have definitely been doing a better job at listing available business grants.
You can head over to:
https://www.gov.uk/business-finance-support
UKRI
One of the bigger ressources to find business grants is UK Research and Innovation (UKRI).
UKRI is a government body with 9 councils:
- Arts and humanities research council
- Biotechnology and biological sciences research council
- Economic and social research council
- Engineering and physical sciences research council
- Innovate UK
- Medical research council
- Natural environment research council
- Research England
- Science and technology facilities council
You can find all funding options from the UKRI on their website: https://www.ukri.org/opportunity/
As you can see, these councils cover most business sectors. However there is a strong emphasis on innovation. These are not the best grants if you are only slightly modifying existing business ideas.
Also, although this is a fantastic organization helping so many businesses take off, the language used to apply and secure funding is very academic and can feel daunting.
I would strongly recommend having no complex here and apply anyway. Not only do these councils help but the process of structuring your idea for these funding applications is a great exercise in planning the future of your business.
Other funding organisations include:
The National Lottery Heritage Fund
https://www.heritagefund.org.uk/
The National Lottery Heritage Fund is a public body in the United Kingdom that distributes funding from the National Lottery to support heritage projects.
The fund was established in 1994 as the Heritage Lottery Fund, and its name was changed to the National Lottery Heritage Fund in 2019. It is responsible for distributing a portion of the proceeds from the National Lottery to support a wide range of heritage projects, including the preservation and conservation of historical sites, the promotion of cultural traditions, and the support of educational programs related to heritage.
The National Lottery Heritage Fund works with a variety of organisations, including charities, local authorities, and community groups, to identify and support heritage projects that will make a positive impact on the UK's communities and cultural heritage.
Local Enterprise Partnerships (LEP)
Local Enterprise Partnerships (LEPs) are partnerships between local authorities and businesses in England that aim to stimulate economic growth and create jobs in their regions. LEPs were created by the UK government in 2010 as a way to drive economic development and growth at a local level.
Each LEP is led by a board of directors, which is made up of representatives from local authorities and businesses. LEPs are responsible for developing and implementing strategies to support economic growth in their regions, and they work with a variety of partners to deliver projects and initiatives that will have a positive impact on the local economy. This can include supporting the development of new businesses, promoting the growth of existing businesses, and attracting investment to the region.
LEPs are funded by a combination of public and private sector resources, and they are accountable to both the local community and the UK government. There are 38 LEPs in England, covering all regions of the country.
Prince Trust
https://www.princes-trust.org.uk/
The Prince's Trust is a charity in the United Kingdom that was founded by Prince Charles, the Prince of Wales, in 1976. It is a registered charity that provides support and resources to young people aged 13 to 30, with a focus on helping them to develop the skills and confidence they need to succeed in education, work, and life.
The Prince's Trust offers a range of programs and services to young people, including educational and training opportunities, mentoring and support, and financial assistance. It also provides practical and emotional support to help young people overcome barriers and achieve their goals.
The Prince's Trust works with young people who are facing challenges such as unemployment, poverty, and social exclusion, and it aims to help them build the skills and confidence they need to turn their lives around and reach their full potential. It has helped more than three million young people since it was founded, and it continues to work to support young people and make a positive difference in their lives.
Am I eligible for a business grant?
The following questions will be asked to determine whether or not you and your business are eligible for a business grant. The format of the questions may differ, but these are the basics, so get ready!
How much funding do you require?
Have you already secured grant funding?
Does your company develop materials, products, devices, systems or services?
What is your estimated Technology Readiness Level (TRL)?
- 1: Idea / Concept
- 2: Invention and research (not tested on users)
- 3: Proof of concept (tested on users)
- 4-5: Product fit but more development to do
- 6: Technology demonstrated or working model in actual environment (selling)
- 7-8: Final product ready to go to market or operating successfully (ready for growth)
What type of technology are you building?
- Developing a completely new technology
- Significantly improves on an existing technology
- Similar technology to an existing product on the market
- Not developing a technology
Estimated spend on Research and Development in the last financial year?
Do you have any further R&D projects to conduct right now or in the future?
Have you filed an R&D claim before?
Do you have any partners or collaborators for your R&D project?
What does your business do?
Which sector do you operate in?
What type of business are you?
- B2B
- B2C
- B2B2C
Business website?
Is your business revenue generating?
Do you have any monthly recurring revenue?
Where is your business located?
How many employees do you have in the UK?
If you use subcontractors, will they be sourced from the UK?
Who can help with your business grant application?
Whichever grant structure you are targeting, securing a business grant is complicated.
A few organisations have popped up to help you navigate this process.
Grantify
Grantify provides information about grants and funding opportunities for businesses and individuals in the United Kingdom. It’s a resource for finding and applying for grants from various sources, including government agencies, foundations, and other organisations.
Services include a grant search tool that allows users to find funding opportunities based on their location, sector, and other criteria, as well as assistance with the grant application process, including help with writing proposals and completing application forms. It also offers training and support to help businesses understand the grant application process and increase their chances of success.
Swoop Funding
https://swoopfunding.com/uk/business-grants/
Sectors where getting a business grant is tough
This change, but it is currently (2023) very difficult to get a grant in these sectors:
- Simple* fitness, mental health or wellness App (*the key here is simple)
- Marketplace, eCommerce, metaverse or NFT platform, marketing, social media, Recruitment, Coaching, Standalone API and plugins
