1. Start Up Loans Scheme (UK Government)
Although technically a loan, this scheme offers funding up to £25,000 per founder with:
- Fixed 6% interest rate
- No fees to apply
- 12 months of free mentoring
Ideal for first-time business owners who need startup capital and guidance.
2. New Enterprise Allowance (NEA)
For unemployed individuals or those on Universal Credit, NEA offers:
- Weekly allowance for up to 26 weeks
- Access to mentoring
- Business planning support
- Potential for additional funding
You must apply through your local Jobcentre.
3. The Prince’s Trust Enterprise Programme
Supports 18–30-year-olds starting a business with:
- Grants and low-interest loans
- Business training and workshops
- Ongoing mentorship
Best for young people facing barriers to employment or entrepreneurship.
4. Local Enterprise Partnerships (LEPs) and Growth Hubs
Across England, LEPs provide region-specific support including:
- Small business grants
- Business advice
- Access to local networks
Availability and focus vary, so contact your local LEP directly.
5. Local Council Startup Grants
Many councils offer startup grants for:
- Premises costs
- Equipment purchases
- Digital adoption (e.g., websites, e-commerce)
Check your local authority’s business support page for availability.
6. Innovate UK Smart Grants
Offers significant funding for businesses developing innovative products or services. Best suited for:
- Tech, science, and sustainability sectors
- Early-stage R&D projects
Highly competitive and requires a strong application.
7. Business Energy Efficiency Grants
These grants help startups invest in energy-saving equipment or upgrades. Provided through:
- Local councils
- Environmental programmes
- Regional energy hubs
Useful for cost-conscious and eco-focused businesses.
8. Arts Council England Project Grants
For creative businesses and individuals, grants support:
- Creative projects
- Audience development
- Talent nurturing
Applicable for startups in design, performance, writing, and visual arts.
9. Community Development Finance Institutions (CDFIs)
Offer loans and small grants to entrepreneurs who struggle to access mainstream finance. Great for:
- Social enterprises
- Community-focused startups
- Underserved regions
10. Social Enterprise Start-Up Grants
Organisations like UnLtd support entrepreneurs solving social issues with:
- Seed funding grants
- Coaching and business development
- Connections to investors
Perfect if your business aims to make a social impact.
Frequently Asked Questions
Are there government grants for starting a business in the UK?
Yes. Multiple government-backed schemes offer startup funding, particularly for the unemployed, young entrepreneurs, and innovators.
Do I have to repay business startup grants?
No. Grants are non-repayable, but you must use the funds for the agreed purpose and meet any reporting obligations.
How do I apply for a business grant?
Prepare a business plan, financial projections, and apply directly via the funding provider’s website or your local council.
Can I combine grants and loans to start a business?
Yes. Many entrepreneurs use a mix of grants, loans, and personal savings to fund their startup.
How long does it take to get grant approval?
It depends on the grant. Some take a few weeks; others, like Innovate UK, may take several months.
Can I get a grant with no business experience?
Yes, especially through programmes like NEA or The Prince’s Trust that are designed to support new entrepreneurs.
Conclusion
Starting a business grants in the UK provide crucial financial support to help turn your idea into a reality. With options ranging from government schemes to regional and industry-specific programmes, there’s likely a grant that fits your needs. Do your research, prepare your documents, and apply with confidence to kickstart your entrepreneurial journey.