Small business grants in the UK

When starting a small business, one of the most challenging hurdles to leap can be funding. Small businesses often lack the capital that larger corporations have access to, therefore, they must explore alternative methods of financing their business.​

Fortunately, there are numerous small business grants available for business owners looking to get started or grow. Government agencies, businesses and philanthropists give grants for specific reasons. Many grants require applicants to meet specific criteria before being eligible for funds. However, with proper research and preparation, you can maximise your chances of a successful application. ​

In this blog, we will cover​

A small business grant is a type of funding given by government agencies, companies or philanthropists aiming to give entrepreneurs a helping hand with starting or growing their businesses. The funds can be used to buy equipment, train staff, develop software, and more.​

Generally, small business grants don’t have to be repaid, however, you may need to meet specific requirements. The process of completing and the wait for the final results is time-consuming and the competition is very high for certain grants.​

It’s important to find out what type of grant is right for you and your business’s needs before your application.​

Business grants can be awarded to any type of business, whether it’s an individual who wants to establish his/her own business or a limited company.​

You should also be aware that not all small business grants are appropriate for your business. Some are better suited for new businesses while others may be more suitable for established businesses looking to take further R&D for the next step forward, for example. ​

There are a few things you should know before you start applying.​

Firstly, remember that not all grants are free. Many grant programs offer matching funds, with a portion of the award coming from you. Secondly, it’s important to know when grants are available. Some grant programs have specific deadlines for applications, so you’ll want to take this into account.​

 Finding appropriate grant programs is the first step on your application journey. The following sources can help you to find grant programs that are right for your business; government agencies, chambers of commerce, grant-seeking websites or your accountant or financial advisor.​

 Contact your Beany accountant if you have any questions about applying for a small business grant. They will help you with guidance every step of the way. ​

When applying for a grant, careful planning and research are key. Before you start, you’ll want to set a plan of action and make a list of all the tasks that need to be done.​

It’s important to have a documented plan for how you intend to use the funds. Showing how you plan to use the money will help your grant provider to understand your goals, mission and give them an understanding of how effectively you’ll make use of your awarded funding. Ask yourself questions such as do you want to use the funding to start a business or grow your business? Is there a particular use for the funding such as R&D?​

Applying for a small business grant can be resource intensive. The last thing you want is to find out you’re ineligible at the application stage. If you’re unsure, contact someone from the organisation directly. ​

Creating a strong business plan to showcase your vision for your business is essential. It helps the organisation/grant provider align its mission, values and goals with yours. Be clear on what you want to achieve in every stage of your business and how you intend to manage it. ​

Some business grants are industry or vertical-specific, so you can narrow down your choices by talking with others in your sector. This can also help you build connections for future investment and funding opportunities.​

This step is self-explanatory, but it’s key not to overlook any details during the application process. Certain grants have a deadline each year.  ​

Some business organisations don’t provide funding directly, but can still be helpful in your process. However, a number of groups can provide support and mentorship (e.g, MentorMe or UK Govt's finance and support). We have listed a few organisations in the following paragraph that offer support for business owners, continue to read.​

Grants for small businesses can be considered 'free money,' so competition is often fierce, and the process can take a long time. You should follow up on your application if you haven’t heard back. Keep an optimistic but realistic attitude. ​

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There are many types of business grants available the UK, so it’s important to select those that are suitable and offer the most benefits to your business. When looking for the right grants, it’s critical to ask yourself: ​

 As a starting point here’s a non-exhaustive list of some small business grants available in the UK:​

Business finance support​

UK Govt grants​

Trying to apply for small business grants but not getting them can be frustrating. However, there are many other resources that can help you establish your business and help it grow, from training to networking.​

The British Chambers of Commerce helps businesses of all sizes by connecting them with other businesses locally, nationally and internationally, with decision-makers and with opportunities. They often provide opinions to policymakers in parliament and have helped shape the UK’s business agenda for many years. ​

Mentorsme is a place where businesses can find free and paid business mentors to help you develop your ideas and make the most of mentors; skills, expertise, experience and contacts. Mentorsme also has advice on how to pick the right mentor for your business.​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.​