1. Start Up Grants from Local Authorities
Local councils and LEPs (Local Enterprise Partnerships) offer grants for starting up business in specific regions. These grants help cover:
- Initial equipment or stock
- Rent and setup costs
- Business mentoring and advice
- Website and digital tools
Check your local council’s website for current schemes and application windows.
2. The Prince’s Trust Enterprise Programme
For those aged 18 to 30, this programme offers:
- Business training and mentorship
- Start-up grants
- Potential access to low-interest loans
It’s ideal for young people looking to start a business with little or no prior experience.
3. New Enterprise Allowance (NEA)
The NEA is a UK government scheme for unemployed individuals starting a business. Benefits include:
- Weekly financial support for up to 26 weeks
- Guidance from a business mentor
- A potential startup grant or loan
To access this, speak with your local Jobcentre Plus advisor.
4. Innovate UK Smart Grants
Designed for startups with innovative products or services, these grants support:
- Research and development (R&D)
- Prototyping and testing
- Market readiness and commercialisation
Highly competitive, these grants are best suited for tech and science-based businesses.
5. Business Support for Women and Minority Founders
There are grant programmes focused on inclusion, such as:
- Women in Innovation Awards
- Black Business Fund
- Enterprise grants for disabled entrepreneurs
- Community interest company (CIC) startup funding
These often provide funding along with mentorship and community support.
6. Creative and Arts Sector Grants
For creative entrepreneurs, funding is available through:
- Arts Council England
- British Film Institute (BFI)
- National Lottery Project Grants
Perfect for startups in media, art, music, and cultural events.
7. Environmental and Green Startup Grants
Eco-conscious businesses can apply for sustainability grants, often covering:
- Renewable energy installations
- Recycling and waste initiatives
- Low-carbon business upgrades
Popular schemes include Low Carbon Workspaces and local green innovation funds.
Frequently Asked Questions
Can I apply for a grant to start a business?
Yes. There are several UK grants aimed at supporting new businesses, particularly if you meet location or demographic criteria.
Do I need to pay back business grants?
No. Unlike loans, grants are non-repayable—but they may have conditions like progress reporting or mentoring requirements.
Can I get more than one grant?
Yes, provided the grants are from separate schemes and don’t overlap in funding purpose.
Do I need a registered business to apply?
Yes. Most grant applications require proof of business registration, such as a sole trader or limited company status.
How long do grants take to process?
Timelines vary—local grants may take weeks; larger national programmes may take months.
What’s the difference between a grant and a startup loan?
Grants are free funds with conditions; loans must be repaid with interest.
Conclusion
If you’re launching a new venture, starting up business grants can offer the financial boost you need—without the burden of debt. With opportunities available across regions, sectors, and demographics, the UK is an encouraging place to begin your entrepreneurial journey in 2025.