Governments do occasionally offer grants for new businesses, especially if they meet certain criteria or they operate in line with initiatives that the council is actively promoting. It doesn’t hurt to do some research and see if there are any local grants you can apply for.
Most grants payout relatively small yearly amounts, often as a way to help small businesses maintain a cash flow, which can come in very handy during the quieter months. Keep in mind that this process may require crossing a fair amount of red tape. However, this will likely be worth it if you gain access to funds in the end.
How they Work?
Small business grants are typically awarded by the government, a government body or a charitable outside body. Grants usually take the form of finance, available to organisations or individuals that meet specific criteria and undergo an application and vetting process.
For example, Innovate UK is a government body providing grants for innovation in certain areas of the UK economy. These grants aim to help support specific businesses and sectors of the economy engaged in a particular type of research and development.
Grants can range in size from £500 to over £1 million, with the majority in the UK sitting between £3,000 and £100,000. Grants are a brilliant source of finance for businesses as they don’t have to be paid back. Still, they are tough to apply for, very competitive and often only available for very specific companies or those engaged in particular areas of research.
The main consideration as to whether you apply for a grant or not should be the time it will take you to complete the application, compared to the likelihood of getting the funding, with further consideration given to what you could be doing instead of applying to raise finance.
Is a Grant Right For Your Business?
While the benefits of a small business grant are second to none, it is worth considering whether a grant is the right funding for you. The application process is usually complex and time-consuming, and you must consider whether you can afford to lose this investment if your application is unsuccessful. It’s worth noting specific sectors lend themselves better to achieving grant funding, namely businesses concerned with innovation, exports or the energy and environment sector, which are key drivers in the UK economy.
This said, business grants can make you huge savings, and/or might be the cash injection you need to get your business off the ground. So, without further ado, here’s our list of 226 private and publicly funded business grants schemes for UK businesses.
