1. What Are Small Business Grants?
Grants for small business startups are non-repayable funds offered by the government, charities, or local authorities to help new entrepreneurs cover initial costs. These grants are often sector-specific or regional and usually come with conditions like business training or milestones.
2. Start Up Loans (Government-Backed Loan with Grant-Like Support)
While technically a loan, the Start Up Loans Scheme offers:
- Up to £25,000 per founder
- Fixed 6% interest rate
- Free business support and mentoring
- No setup or early repayment fees
Many treat this as the next best thing to a grant, especially for first-time founders.
3. New Enterprise Allowance (NEA)
If you’re unemployed or on Universal Credit, NEA offers:
- Weekly allowance for up to 26 weeks
- Access to a business mentor
- Possible loan to support your venture
Ideal for individuals who want to become self-employed while receiving benefits.
4. Local Council Business Grants
Local councils across the UK provide region-specific grants that can cover:
- Equipment purchases
- Marketing setup
- Business premises improvements
Contact your local authority’s economic development office or website for available schemes in your area.
5. The Prince’s Trust Enterprise Programme
Supports 18–30-year-olds with:
- Business training and mentoring
- Grant funding
- Low-interest loans (optional)
Especially helpful for young entrepreneurs without access to other financial support.
6. Innovate UK Smart Grants
Although competitive, these grants are ideal for startups working on:
- Technology innovations
- Science-based solutions
- Commercial R&D
They provide substantial non-repayable funding but require detailed proposals.
7. Arts Council England Grants
For startups in the creative sector, funding is available for:
- Art, design, performance, and media projects
- Creative business development
- Equipment or studio space
Application success depends on artistic merit and public impact.
8. Local Enterprise Partnerships (LEPs)
LEPs support startups and micro-businesses with:
- Business growth grants
- Job creation funding
- Advisory support
Each LEP serves a specific region, so grant offerings vary.
9. Women in Business Grants
Organisations like Prowess and other women-led initiatives occasionally offer grants or competitions for female entrepreneurs starting new ventures.
10. Social Enterprise Startup Grants
If your business has a social or environmental mission, you may qualify for:
- Seed grants from UnLtd
- Support from local community funds
- Access to impact investors
Frequently Asked Questions
Can I get a grant to start a small business in the UK?
Yes. While limited, several grants are available through government, councils, and charities.
Do I need to repay a small business grant?
No. Grants do not require repayment, but they often come with usage conditions and progress reporting.
Can I apply for multiple grants?
Yes, but some grants may disqualify you if you receive other funding. Read terms carefully.
Is a business plan required for grant applications?
Absolutely. A clear business plan is usually essential to secure grant funding.
What sectors are most likely to receive startup grants?
Technology, creative industries, social enterprise, and green energy often have the most funding options.
How long does grant approval take?
It varies—from a few weeks to several months—depending on the funding body and complexity of the application.
Conclusion
Accessing starting up a small business grants can give you a vital boost as you launch your venture. With careful research, a solid plan, and timely applications, you can tap into available funding to turn your entrepreneurial dream into a thriving business reality.