Small business grants across the UK

If you are a business owner looking for funding for your small business in the UK, there are many business grants available, ranging from funding for startups to more established businesses.

Small business grants across the UK come with particular criteria that need to be met to qualify to obtain this type of business finance. As a small business owner, it can be a minefield to know the grants available, where to look and how to apply.

In this blog, we will look at some of the small business grants currently available in 2024.

Where can I find small business grants?

UK government funding opportunities and business grants are available for UK businesses from a wide variety of sources including the UK government. In Wales, Ireland and Scotland grants are available via the Welsh government and Northern Ireland Assemblies and via the Scottish Parliament.

More information can be found here:

England: Business Finance Support Finder.

Wales: Business Grants website.

Ireland: Enterprise Ireland.

Scotland: Funding Opportunities website.

What type of small business grant funding is available?

There are many forms of business grants available that can support business growth, provide cash awards, buy assets, provide free equipment or help you to reduce costs.

Most government small business grants are available in the form of a direct grant. Direct grants are where a business grant is awarded to give financial support for costs involved in setting up or growing a business.

There is a broad range of business grants provided for things like buying equipment, training, expanding into new markets, investment in environmental technologies such as solar panels, green energy and to implement energy saving initiatives etc.

Business grant eligibility criteria

Business grants normally have strict eligibility criteria such as:

• the geographic area or region you’re based in
• the type of business you run
• the area of your business the grant is for.

Speak to the grant provider to find out what’s involved in the process and whether you’re eligible.

Some business grants offer additional funding, while others offer free equipment or discounts to help you to start or grow your business.

You will need to understand the conditions attached to the grant before you apply to ensure that your application will be successful. It is worth seeking expert advice to help you apply for the right type of funding. Speak to an accountant such as dns accountants to understand your business funding options.

What types of grants are available in the UK?

Many different business grants are available in the UK. Small business grants can be obtained for both startup businesses, small businesses and more established businesses. Direct grants and government funding come in various types, each tailored to different needs and criteria. Here are some common types of grants:

• 1. Start-up grants: Targeted at new start up businesses, helping them to set up and support them with initial trading periods. Some examples of these are:

  • Seed Enterprise Investment Scheme (SEIS) - click here
  • The Prince’s Trust Enterprise Programme - click here

• 2. Business growth grants: Targeted at those companies looking to grow, for example through innovation, entering new markets etc. For example:

  • Innovate UK Business Growth - click here

• 3. Sector-specific grants: Designed for businesses in particular industries, like retail, property, technology, manufacturing, or creative sectors. Examples are:

  • Electric vehicle charge point and infrastructure grants for landlords - click here
  • B&CE construction industry - click here

• 4. Regional grants: Available to businesses operating in specific local authority areas, aimed at boosting the local economy. These are generally offered by local councils or Local Enterprise Partnerships (LEPs). Examples include:

  • Northern Powerhouse Investment Fund - click here
  • Local Enterprise Partnerships funding - search for your own local authority or LEP to find out more or - click here

• 5. Resource & training grants: Offering training schemes, funding for workshops, training courses, professional qualifications, mentorships and coaching. For example:

  • AI and upskilling fund - click here
  • Construction Industry Training Board - click here
  • Engineering specific training grants - click here

• 6. Innovation and R&D: Provided for businesses focused on research, development, and innovative projects. Examples of these are:

  • R&D tax credits - click here
  • Innovate UK - click here

• 7. Export grants: Help businesses expand into international markets. Some examples are:

  • SME Brexit Support Fund - click here
  • UK Export Finance - click here

• 8. Sustainability and green grants: Support for businesses working on environmental projects, improving energy efficiency, lowering carbon emissions, installing low energy LED lighting or working towards other sustainability goals. Some will offer funding, others may offer energy efficient free equipment. For example:

  • Clean growth fund - click here
  • Carbon trust - click here

• 9. Job creation grants: Focused on expanding businesses and encouraging the creation of new employment opportunities, often focused on young people or sector specific job creation. Examples of these are:

  • Apprenticeship funding - click here
  • ECITB engineering training grants - click here

• 10. Social enterprises & community grants: Designed for businesses that have a social or community driven mission such as community groups etc. Examples include:

  • The community ownership fund - click here
  • UnLtd - click here
  • National Lottery Community Fund - click here

• 11. Demographic-specific grants: Targeted at specific groups, such as young entrepreneurs, women, or minority-owned businesses. For example:

  • Prince’s Trust - click here
  • Global fund for women - click here

For more help and advice on financial support for your business, visit the gov.uk website here.

How do I apply for a small business grant?

Each small business grant scheme is different. You will need to check with the awarding body providing the business grant on their general terms and criteria before you go through the application process.

But here are some tips to consider when applying for business grants:

• Consult with the grant body that are awarding you the grant: Understand what business grants are available and what each of the organisations offering them wants from you or your business. Then assess your chances of making a successful application or seek expert advice.
• Understand the grant objectives: Understand why the grant funding is being awarded, the specific grant requirements of the grant body or local authority and ensure your application objectives match funding requirements as closely as possible.
• Business plan/Marketing strategy: Many small businesses don’t have clear or strong business plans or marketing strategy to grow their business. As with all funders the business grant awards body will be looking for a professional business plan. So, create a thorough business plan before you apply to help you secure grant funding.
• Submit early application: Grants available are highly sort after, therefore other businesses and entrepreneurs are applying for small business grants at the same time as you. There will also be finite pot of grant funding available so, the earlier you apply, the more chance you may have of securing grant funding for your business.
• Check your own finances: Many business grants available expect you to match funding yourself. For some small businesses this may not be possible. So, before seeking a small business grant, understand your own business finance or your own personal finances to be sure you can match funding if required.

What are the advantages of business grants?

Depending on the specific terms of the grant, the benefits of a business grant are:

• No repayment - Unlike a business loan or other sources of finance, most grants are given to you and do not have to be repaid. However, bear in mind that many small business grants require you to match the grant funding you are given with your own money or pay for things up front and claim back the costs.
• Retained equity - Unlike things like angel investors or equity finance, with a grant you retain 100% control and ownership of your business.
• Choice - There is a huge choice of grants available to small businesses.
• Combine with other finance - Business owners can look to combine a small business grant with another source of finance such as a business loan to provide funding a specific project. Having funding from multiple sources can also help to spread the risk in your business.
• Accessibility - There is a huge amount of information and funding for a small business owner to access with regard to grant funding. Whether it be the main UK government website or individual grant bodies.
• Business support - Often the awarding body will also offer business support to small or new businesses, which can be invaluable when starting up or being an inexperience business owner.

What are the disadvantages of business grants?

As with all types of business finance, there can be disadvantages to this type of funding. Here are some potential disadvantages of trying to secure grant funding.

• Competition - There are often many other businesses applying for government support and grants, so competition is fierce. It’s worth working with a grant consultant or accountants such as dns to help you find the right funding or grants and to help you through the application process.
• Specific requirements - As you have seen, many grants are for specific projects or have very specific requirements to obtain the funding.
• Cash flow - Some grants require you to match funding or will require you to spend the money first and then claim it back from the grant body retrospectively, meaning that it may affect your business cashflow.
• Time - Applying for grants can be time consuming, so it may be worth using your accountant or a grant consultant to help you through the process.
• One-off - Grants are often just one-off awards, so they don’t provide a long-term solution to your business finances. However, for new businesses, they can be an invaluable source of funding to get your business off the ground, but you may have to look at other finance sources to grow your business such as a bank loan, equity finance, or asset finance to provide funding longer-term.

Other business finance available

For small businesses, a business grant is not the only potential source to raise money. If you or your business do not fit the eligibility criteria for a business grant then there are many alternative sources of financial support for UK businesses including:

• Business loans
• Equity finance
• Purchase order finance
• Trade credit
• Asset finance
• Debt finance
• Crowdfunding
• Angel investors

As with business grants, business loans and other forms of finance will require a sound business plan and if you are an established business, they may require bank statements and accounts in order to secure the finance you require, so preparation is key before applying.

Summary

Small businesses in the UK have a wide variety of government funding and government grants available to them.

Most grants have strict criteria in order to secure the grant, so check your eligibility before you apply. Also, before applying. you should have a clear business plan and marketing strategy for your business to help you to make a strong case to the awarding body.

You can keep a track of current, recently launched and upcoming grants via the UK government website.

Seek expert advice to assess your business needs before you decide what funding to take for your business.Call us today on 03300 886 686, or you can also e-mail us at enquiry@dnsaccountants.co.uk. for help and advice on how to fund your start up or business growth plan.

About the author

Gary Zouvani
I am a qualified chartered management accountant with over 25 years’ experience working in industry and accountancy practise. Currently DNS group operations director I manage over 50 employees as well as head up our accountancy franchise proposition.