1. Start Up Loans (UK Government)
While technically a loan, this UK government-backed program offers funding up to £25,000 per founder. It’s designed for first-time business owners and includes free business mentoring and low fixed interest rates, making it an ideal first funding option.
2. The Prince’s Trust Enterprise Programme
Available to 18–30-year-olds in the UK, this programme provides grants, mentoring, and training to help young people launch their first businesses. It’s one of the best first time business grants for youth entrepreneurs.
3. Local Enterprise Partnership (LEP) Grants
Many regions in the UK offer startup grants through their LEPs. These grants are often aimed at boosting the local economy and are tailored for new businesses with job creation or innovation potential.
4. Innovate UK Smart Grants
For first-time entrepreneurs with a strong innovation or technology focus, Innovate UK offers substantial grant funding. Though competitive, these grants support early-stage businesses developing new products or services.
5. New Enterprise Allowance (NEA)
Offered through Jobcentre Plus, NEA supports unemployed individuals who want to start a business. It includes a weekly allowance, mentoring, and potential access to a startup loan—ideal for first-time founders transitioning from benefits to business ownership.
6. Small Business Research Initiative (SBRI)
First-time entrepreneurs with ideas that solve public sector challenges can apply for SBRI grants. These are especially useful for new businesses in tech, healthcare, and sustainability sectors.
7. Arts Council Project Grants
For those in the creative sector starting a business—such as art, design, or music—the Arts Council offers grants to support first-time creative entrepreneurs with new projects and cultural initiatives.
8. Community and Local Council Grants
Many local councils offer small business startup grants targeted at first-time entrepreneurs. These may include grants for equipment, premises, or digital tools to get your business off the ground.
9. Women in Innovation Awards (Innovate UK)
Targeted at first-time female entrepreneurs, this scheme provides funding, mentorship, and exposure for women launching innovative businesses. It’s a great opportunity for women starting out in underrepresented fields.
10. Startup Grant Competitions
Private companies like Amazon, Shell, and Barclays host grant competitions for first-time entrepreneurs. Winners receive funding, publicity, and support. These are competitive but valuable for ambitious new business owners.
Frequently Asked Questions
Are there grants for first-time business owners in the UK?
Yes, several public and private schemes offer funding and support to help new entrepreneurs launch their businesses.
Do I have to repay a business grant?
No, business grants are non-repayable as long as you meet the specified conditions.
Can anyone apply for a first time business grant?
Eligibility depends on the grant. Some target young people, specific industries, or underrepresented groups. Check the criteria carefully.
What documents do I need to apply for a business grant?
You typically need a business plan, proof of ID, financial forecasts, and sometimes a pitch or project outline.
How competitive are first-time business grants?
Some are highly competitive, especially those from national bodies. Preparing a strong application and clear business plan helps improve your chances.
Can I get both a grant and a loan to start my business?
Yes, many entrepreneurs use a combination of grants and Start Up Loans to cover different startup costs.
Conclusion
Securing first time business grants is a powerful way to launch your entrepreneurial journey. With various public and private options available in the UK, you can access essential funding without the burden of repayment. Take time to research, prepare a compelling business plan, and apply with confidence—you could get the boost you need to turn your idea into a thriving business.