1. What Is a Business Grant?
A business grant is a sum of money awarded to entrepreneurs or startups by governments, non-profits, or private organizations. Unlike loans, grants don’t require repayment, making them an ideal funding source for setting up a new business. However, they are often competitive and tied to specific criteria.
2. UK Government Start-Up Grant Schemes
Across the UK, various government-backed schemes offer grants to help new businesses. These include innovation support, startup capital, and regional enterprise grants. Business support hubs, local councils, and the Department for Business and Trade frequently publish updated opportunities.
3. The Prince’s Trust Enterprise Programme (UK)
Young entrepreneurs aged 18–30 can receive financial support through this well-established initiative. The programme includes start-up grants, training, mentorship, and access to business networks—particularly helpful for those unemployed or from disadvantaged backgrounds.
4. Innovate UK Grants
If you’re launching a business based on innovation or R&D, Innovate UK offers a range of funding programmes. Grants support market-disrupting products, digital technology, and sustainability-focused startups. These are ideal for founders with scalable, science-based ideas.
5. Local Enterprise Partnership (LEP) Funding
LEPs across England offer targeted funding and support for local entrepreneurs. Each LEP tailors its grants to boost regional economies, with opportunities for new businesses in priority sectors like green energy, tourism, or technology.
6. Business Energy Efficiency Grants
Sustainability-focused startups may be eligible for environmental or energy grants. These cover costs related to upgrading equipment, improving energy efficiency, or launching green business initiatives.
7. Female Founders and Diversity Grants
Several UK-wide and regional funds aim to support underrepresented groups in business—especially women, BAME founders, and disabled entrepreneurs. Programmes often combine grants with access to training, workshops, and startup accelerators.
8. New Enterprise Allowance (NEA)
Although more of a support package than a direct grant, the NEA offers financial help, mentoring, and access to startup loans for benefit claimants in the UK. It’s especially useful for unemployed individuals setting up their first business.
9. Social Enterprise Grants
If your business idea aims to tackle social or environmental issues, there are specific grants available. Organizations like UnLtd and Big Issue Invest provide funding to social entrepreneurs committed to making a difference.
10. Startup Competitions and Awards
Entrepreneurship contests, such as the StartUp Awards, Shell LiveWIRE, or accelerator programs, often award grant funding to promising new businesses. Winning can also boost exposure and attract additional support or investment.
Frequently Asked Questions
1. Can I get a grant to start a business?
Yes. Many public and private organizations offer grants to support new businesses, especially in innovation, youth, and underserved communities.
2. Do I have to repay a business grant?
No. Grants are non-repayable, but they may come with reporting requirements or usage conditions.
3. How can I qualify for a startup grant?
Each grant has its own criteria, but common factors include your business model, social impact, location, and target market.
4. Where can I find grants for setting up a business?
Check with local councils, government websites, business hubs, and national programs like Innovate UK or The Prince’s Trust.
5. What should I include in a grant application?
A strong application includes a business plan, financial projections, evidence of need, and a clear explanation of how the funds will be used.
6. Can I apply for more than one grant?
Yes. Many startups combine different funding sources, but be transparent and ensure eligibility with each provider.
Conclusion
Finding the right grant for setting up a business can dramatically reduce startup costs and increase your chances of success. In 2025, a variety of targeted and inclusive funding opportunities are available to help entrepreneurs turn their vision into a viable enterprise. Start researching, prepare your application carefully, and take the first confident step toward launching your business.