1. What Is a Grant to Start a Small Business?
A grant to start a small business is financial support provided by government bodies, local councils, charities, or private organisations. Unlike loans, grants usually do not need to be repaid, making them highly attractive for new entrepreneurs.
2. Why Apply for a Small Business Grant?
- Provides funding without debt or interest
- Reduces financial risk when starting out
- Can be used for equipment, marketing, or staffing
- Often comes with extra benefits such as mentoring or training
- Builds credibility with customers and investors
3. Types of Small Business Grants
- Government grants – National and regional schemes supporting innovation, sustainability, and startups.
- Local council grants – Targeted at businesses boosting the local economy.
- Sector-specific grants – For industries like tech, creative arts, and green businesses.
- Charity and trust funding – Available for social enterprises and community-focused startups.
- Innovation and R&D grants – For businesses developing new technologies or products.
4. Popular UK Grants to Start a Small Business
- The Prince’s Trust Enterprise Programme – For entrepreneurs aged 18–30, offering grants, mentoring, and training.
- New Enterprise Allowance (NEA) – For unemployed people starting a business, includes grants and mentoring.
- Innovate UK Smart Grants – For innovative businesses with high growth potential.
- Local Enterprise Partnerships (LEPs) – Provide regional business support and funding.
- Creative Sector Grants – For arts, design, and media startups.
5. Eligibility for a Business Grant
Each grant has its own criteria, but generally, you must:
- Be over 18 and a UK resident
- Be starting or running a small business
- Operate in an eligible sector or location
- Provide a detailed business plan with financial forecasts
- Show how your business benefits the community or economy
6. How to Apply for a Grant to Start a Small Business
Step 1: Research Grants
Find schemes suited to your business sector and location.
Step 2: Write a Business Plan
Include your business idea, market research, goals, and financial forecasts.
Step 3: Gather Documents
Prepare proof of ID, business registration, financial details, and project plans.
Step 4: Submit Application
Apply online or through your local council or funding body.
Step 5: Follow Up
Some grants require interviews or presentations before approval.
7. Advantages of Business Grants
- No repayment required
- Encourages business growth and innovation
- Improves credibility with partners and customers
- May include valuable mentoring and training
8. Disadvantages of Business Grants
- Highly competitive application process
- Often restricted to certain industries or regions
- Applications can be time-consuming
- Some require matched funding (you invest a portion too)
Frequently Asked Questions
1. Do I have to repay a business grant?
No, as long as you meet the terms and conditions.
2. How much money can I get from a grant?
Amounts vary—from a few hundred pounds to over £100,000 depending on the scheme.
3. Can I apply for multiple grants?
Yes, as long as you meet the eligibility criteria for each one.
4. Are grants available for online businesses?
Yes, especially for digital, creative, and innovative startups.
5. Can unemployed people get a grant to start a business?
Yes, through programmes like the New Enterprise Allowance (NEA).
6. Do I still need a business plan for a grant?
Yes, most grants require a strong business plan and financial forecasts.
Conclusion
A grant to start a small business is one of the best ways to secure funding without debt. While competition is tough, research, preparation, and a strong business plan can greatly increase your chances of success. Grants not only provide financial support but also mentorship and credibility to help your business thrive.