1. Local Authority Small Business Grants
Councils across the UK offer small business grants to support local economic growth. These can cover:
- Equipment or IT upgrades
- Premises improvements
- Digital transformation
- Hiring and training
Grants typically range from £1,000 to £25,000, depending on your location and project scope.
2. Innovate UK Smart Grants
Aimed at businesses developing innovative products or services, these grants fund:
- Research and development
- Prototype testing
- Commercialisation strategies
Although competitive, Smart Grants are ideal for tech and science-based small businesses with high growth potential.
3. New Enterprise Allowance (NEA)
This government-backed scheme helps jobseekers start a business and may include:
- Weekly allowance for up to 26 weeks
- Business plan and mentoring support
- Access to startup grants or loans
You must be receiving certain benefits and have a viable business idea.
4. The Prince’s Trust Grants (Ages 18–30)
If you’re aged 18 to 30, The Prince’s Trust offers grants and enterprise support for:
- Business registration
- Equipment or tools
- Marketing and branding costs
It’s perfect for young entrepreneurs launching their first venture.
5. Arts and Creative Sector Funding
Creative businesses can apply for grants from:
- Arts Council England
- British Film Institute (BFI)
- National Lottery Project Grants
These support creative projects, public events, and business development in the arts and cultural industries.
6. Green Business Grants
Sustainability is a government priority, with grants available for:
- Energy-efficient upgrades
- Waste reduction and recycling initiatives
- Carbon reduction technologies
Examples include Low Carbon Workspaces and local council green business schemes.
7. Inclusive and Sector-Specific Grants
There are also grants focused on inclusion or specific sectors:
- Women in Innovation Awards
- Black Business Fund
- DEFRA agriculture grants
- Manufacturing growth support
These grants may also offer mentoring, networking, and promotional support.
Frequently Asked Questions
Can I get a UK small business grant to start my business?
Yes. Local and national grants are available for startups and early-stage businesses, often in specific sectors or locations.
Are business grants free money?
Yes. Grants do not need to be repaid, but often have strict conditions and reporting requirements.
Do I need to be registered as a business to apply?
Yes. You must be legally registered as a sole trader, limited company, or partnership in the UK.
Can I apply for more than one grant?
Yes. As long as the grants don’t duplicate funding, you can apply for multiple schemes.
Is it hard to get a small business grant in the UK?
It can be competitive, but a strong application with a clear business plan increases your chances.
Where can I find the latest small business grants?
Check your local council’s website, GOV.UK, and innovation support platforms like Innovate UK.
Conclusion
If you’re looking to fund your startup or grow your existing company, UK small business grants offer a valuable source of non-repayable funding. From local council schemes to innovation-focused awards, there’s a wide range of opportunities for businesses ready to take the next step in 2025.