1. What Are Business Setup Grants?
Grants for setting up a business are non-repayable funds offered to help new entrepreneurs launch and grow their ventures. Unlike loans, these do not require repayment, making them an attractive funding source.
2. Who Can Apply for Business Setup Grants?
You’re typically eligible if you:
- Are starting a new business in the UK
- Have a detailed business plan
- Meet specific criteria (e.g. location, industry, age group, or social mission)
Each grant has its own terms, so check individual requirements carefully.
3. UK Government Start Up Grants
These include:
- New Enterprise Allowance (NEA): For unemployed individuals starting a business
- UK Shared Prosperity Fund: Supports regional business development
- Innovate UK Grants: For science, tech, and innovation startups
Apply through GOV.UK or local enterprise hubs.
4. Local Authority and Council Grants
Many UK councils offer business startup grants. Examples:
- South East Business Boost (SEBB)
- Warwickshire Start-Up Grant
- Greater Manchester Business Growth Hub
Typically offer £1,000–£5,000 for setup costs, marketing, or premises.
5. Prince’s Trust Enterprise Programme
For young entrepreneurs aged 18–30:
- Start-up training and mentoring
- Small grants to help launch a business
- Focused on disadvantaged or unemployed youth
A great option if you’re early in your career.
6. Female Entrepreneur Grants
Designed to support women in business:
- Women in Innovation Awards (Innovate UK)
- Enterprise Nation She Means Business
- Regional or industry-specific grants for female founders
These support gender diversity in entrepreneurship.
7. Social Enterprise Grants
If your business has a social or environmental mission:
- UnLtd Awards: Up to £15,000 in grant funding
- The National Lottery Community Fund
- SSE (School for Social Entrepreneurs)
These grants often include mentoring and support programmes.
8. Rural Business and Farming Grants
For startups in agriculture or rural areas:
- Farming Investment Fund
- LEADER Rural Development Grants
- DEFRA and local councils often provide capital funding
Use it for equipment, sustainability projects, or diversification.
9. Creative and Cultural Start-Up Grants
Creative startups can apply for:
- Arts Council England
- British Film Institute (BFI)
- Creative Scotland
Support includes business setup costs for artists, designers, filmmakers, and more.
10. Green and Sustainable Business Grants
Grants for eco-conscious startups include:
- Green Recovery Challenge Fund
- Low Carbon Business Support (via councils or enterprise hubs)
- Support for energy-efficient tech, clean transport, or waste reduction
These encourage sustainable entrepreneurship.
11. What Can Grants Be Used For?
Common expenses covered:
- Equipment or inventory
- Marketing and branding
- Website or tech development
- Business advice or training
- Rent or workspace improvements
Terms vary, so read usage rules carefully.
12. How to Apply for Business Grants
Steps:
- Identify suitable grants (based on industry, region, or background)
- Write a clear business plan and funding proposal
- Provide budget estimates and expected impact
- Submit required documents (ID, financials, business registration)
- Follow up and be ready for interviews or reviews
Persistence is key—competition can be high.
Frequently Asked Questions
Do I have to repay business grants?
No. Grants are non-repayable if you meet the terms and use the money correctly.
Can I apply for multiple grants?
Yes, as long as they don’t overlap or conflict. Always disclose other funding.
How much can I get in a startup grant?
Most range from £500 to £25,000, depending on the grant type and funder.
Do I need a business plan?
Absolutely. It’s essential for explaining your idea and justifying funding.
Can I get a grant and a loan?
Yes. Many startups combine both to maximise support and flexibility.
Are business grants taxable?
They can be, depending on use. Consult an accountant for specifics.
Conclusion
Grants for setting up a business in the UK are powerful tools for reducing startup costs and financial risk. From government-backed support to regionally targeted schemes and sector-specific funds, there’s likely a grant that fits your needs. Do your research, apply confidently, and take the first step toward launching your business.