1. What Are Start Up Grants?
Start up grants are non-repayable funds awarded by governments, charities, and private organisations to support new business ventures. Unlike loans, grants don’t need to be paid back—making them a valuable source of risk-free capital for entrepreneurs.
2. UK Start Up Loans Scheme (with Optional Grant Support)
While technically a loan, the Start Up Loans Scheme from the British Business Bank often includes access to free mentoring and may link with local grant initiatives. Ideal for entrepreneurs with limited access to traditional finance.
3. Innovate UK Smart Grants
For start ups focused on technology, science, or innovation, Innovate UK offers Smart Grants to fund:
- Feasibility studies
- Prototype development
- Market testing
These are competitive but generous, offering up to £500,000 depending on the project.
4. Local Authority and Regional Enterprise Grants
Many UK councils offer small grants to support local businesses, often under economic development programmes. Examples include:
- Business start up grants
- High street and retail grants
- Green business grants
Check your local council’s website or economic development office for availability.
5. Prince’s Trust Enterprise Programme
For young entrepreneurs aged 18–30, the Prince’s Trust provides:
- Business planning support
- Financial assistance (including grants)
- Mentoring and workshops
This programme is ideal for new founders starting out with limited resources.
6. Female Founders and Diversity Grants
Grants exist to support women, minority, and underserved entrepreneurs. Look for:
- Women in Innovation Awards
- NatWest Women in Business grants
- Community enterprise support for Black and Asian entrepreneurs
These aim to promote equality in business access.
7. Environmental and Sustainability Start Up Grants
If your business contributes to sustainability or green innovation, funding options include:
- Low Carbon Workspaces grants
- Clean Growth innovation funding
- Energy efficiency startup support
These grants support the UK’s net-zero agenda and green economy.
8. University-Linked Entrepreneur Grants
If you’re a student or recent graduate, universities often provide:
- Start up competitions
- Small business grants
- Accelerator support
Universities like UCL, Oxford, and Manchester offer funds for commercialising student-led projects.
9. Grant Competitions and Challenges
Many organisations offer grants as prizes in contests or challenges. Examples include:
- Shell LiveWIRE
- Hatch Enterprise competitions
- Corporate-sponsored start up contests
Winning requires a strong pitch and standout business idea.
10. Sector-Specific Start Up Grants
Look for funding in your specific industry, such as:
- Creative industries (Arts Council grants)
- Food and agriculture (DEFRA grants)
- Tech and digital (Digital Catapult support)
Industry bodies and trade associations often promote grant opportunities relevant to their sector.
Frequently Asked Questions
Q1: Do I have to pay back start up grants?
No. Start up grants are non-repayable as long as you comply with the grant terms and use the funds as specified.
Q2: How do I apply for start up grants?
Applications usually involve a business plan, financial projections, and a description of how the grant will be used. Deadlines and formats vary.
Q3: Can I apply for more than one grant?
Yes, but make sure the grants are compatible and don’t overlap in purpose or funding use.
Q4: Are grants available for online businesses?
Absolutely. Many digital and eCommerce start ups qualify for the same grants as brick-and-mortar businesses.
Q5: Are grants taxable?
Yes. Most business grants are considered taxable income and should be reported appropriately.
Q6: Is it hard to get a grant for a start up?
Grants are competitive, but a well-prepared application and clear business purpose can improve your chances significantly.
Conclusion
Grants for start ups offer vital financial support to launch and grow your business without debt. With options ranging from tech innovation to community development, entrepreneurs in the UK can find targeted funding to match their business goals. Apply early, prepare thoroughly, and take advantage of the support available.
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