1. What Are Business Grants for New Businesses?
Business grants are non-repayable funds provided by the government, organizations, or charities to support startups and early-stage companies. Unlike loans, they don’t require repayment, making them ideal for new businesses needing a financial boost.
2. Why New Businesses Need Grants
Grants help cover:
- Startup costs
- Equipment purchases
- Market research
- Product development
- Hiring and training staff
For many new businesses, grants provide critical early-stage funding that can unlock growth and sustainability.
3. UK Government Start-Up Grant Schemes
The UK government supports new businesses through various programs:
- Start Up Loans Scheme (technically a loan but with mentorship and low interest)
- Innovate UK Smart Grants for tech and innovation-driven companies
- UK Research and Innovation (UKRI) for science, tech, and research startups
- New Enterprise Allowance (NEA) for individuals on benefits starting a business
Each program has specific criteria and target industries.
4. Local Authority Business Grants
Many local councils offer business grants or incentives for new companies in their region. These typically support:
- High street startups
- Creative industries
- Rural businesses
- Regeneration projects
Check your local council’s website or contact their business support unit.
5. Prince’s Trust Enterprise Programme
Ideal for 18-30 year-olds, this programme offers:
- Business training and mentoring
- Access to start-up funding
- Grants for business essentials
It’s perfect for young entrepreneurs starting their first venture.
6. Seed Enterprise Investment Scheme (SEIS)
While not a direct grant, SEIS offers tax incentives for investors in new businesses. This can make it easier for startups to raise funds from private investors.
7. Innovate UK Grants for Tech Startups
Tech-focused startups can access grants for R&D, innovation, and market testing through Innovate UK. These are highly competitive but can provide up to £2 million in funding for qualifying projects.
8. Regional Development Funds
Each UK nation has tailored schemes:
- Wales: Business Wales Start-Up Grant
- Scotland: Scottish Enterprise funding
- Northern Ireland: Invest NI startup support
- England: Local Enterprise Partnerships (LEPs) offer area-specific grants
These programs often target high-impact or high-growth potential sectors.
9. The National Lottery Heritage Fund
Startups involved in heritage, culture, or community projects may qualify for grants from the Heritage Fund, especially if the project has educational or local benefits.
10. Green and Environmental Business Grants
Sustainable or eco-friendly businesses can apply for:
- Energy efficiency grants
- Carbon reduction funding
- Environmental Innovation grants
Examples include local Clean Growth initiatives and the Green Recovery Challenge Fund.
11. Creative and Arts-Based Grants
Startups in design, fashion, media, or arts can access support through:
- Arts Council England
- Creative Scotland
- BFI (British Film Institute)
These often combine funding with mentorship or exposure opportunities.
12. Female Entrepreneur Grants
Several schemes support women-led startups:
- Women in Innovation Awards (Innovate UK)
- Female Founders Fund
- Enterprise Nation’s female entrepreneur programs
These aim to reduce funding disparities and boost gender equality in business.
13. Social Enterprise Funding
If your startup aims to tackle social issues or improve community welfare, consider:
- UnLtd’s social entrepreneur grants
- Big Society Capital
- The School for Social Entrepreneurs (SSE) grants and courses
These support mission-driven businesses at different stages.
14. EU and Horizon Europe Grants
Despite Brexit, UK startups can still access Horizon Europe funds (with association agreements). These support innovation, research, and cross-border collaboration in the EU.
15. How to Apply for a Business Grant
Follow these tips:
- Research eligibility thoroughly
- Create a clear, concise business plan
- Show potential impact and sustainability
- Meet deadlines and provide full documentation
- Seek advice from business support organizations
Grant applications can be competitive—strong preparation is essential.
Frequently Asked Questions
Can I get a grant to start a business in the UK?
Yes, there are several grants available through local councils, government schemes, and private organizations to help launch new businesses.
Do I have to repay a business grant?
No, business grants are non-repayable funds, provided you meet the grant terms and conditions.
What are the easiest business grants to get?
Local authority grants and startup mentorship programs like the Prince’s Trust are generally easier to access for new entrepreneurs.
How much can I get in a startup grant?
Grant amounts range from £500 to £250,000 or more depending on the program and your business type.
Are grants available for online businesses or ecommerce?
Yes, especially if your online business focuses on innovation, digital transformation, or local economic impact.
Can I apply for multiple grants at once?
Yes, but make sure they don’t overlap in purpose or conflict with each other’s terms.
Conclusion
Securing business grants for new businesses in the UK can make a big difference in your startup journey. With numerous national, local, and industry-specific options available, it pays to research thoroughly and apply strategically. These grants can be the financial lifeline you need to grow your idea into a thriving enterprise.