Where can you get a grant or funding for a new enterprise start-up?

There are two main places to turn to for grant funding for your enterprise. Some private organisations will have a grant fund that you can access. Money is made readily available to you so long as your application is deemed to be successful by the programme’s administrators. The other type of funding is managed by the government. Typically, government-funded business start-up grants are administrated by an agency on their behalf. Some government grant schemes provide funding to businesses in a certain locality. Others will provide a start-up with funds only when an application is received from a firm which works in a particular sector of the economy. To access a government fund, you will need to comply with the rules of that particular funding stream.

Let’s look at the two main types of funding scheme streams in greater detail. Bear in mind that the examples given below are not the only funding streams available to new business ventures. They are just some of the main ones.

Grants and loans for small businesses from private organisations

Whether you are developing new products, thinking of opening a high-street shop or trying to turn your small start-up into a medium-sized business, then a development grant or loan from a private organisation may mean you can get the sort of investment you need. Crucially, this will mean that you can obtain funding without going to a high-street bank or building up debt on a credit card. Private organisations sometimes offer finance for businesses at the pre-start phase – before they have launched. However, you can also get access to private funds which will help you to expand after trading has begun. In fact, some programmes offer investment funding for even well-established firms which want to expand into a new area, for example.

The heritage lottery fund

This scheme provides access to a fund which is awarded to individuals only. To qualify, your application form must state that you are either running a non-profit organisation or you are a sole trader operating as a lone entrepreneur. No specific funding amounts are allocated under the scheme. Therefore, you have to work out how much you need and make a case based on your own assessment. Applying to the Heritage Lottery Fund can be done at any time of the year. However, it can take over six months to find out whether you have been successful.

The prince’s trust

Finance for small businesses as well as charitable donations is part of what the Prince’s Trust provides throughout the UK. Young people under 30 years of age may apply to the fund as a new business owner. Finance is provided in one of three ways. Small grants are awarded for new product ideas so they can be market tested. Individual entrepreneurs can access funds of up to £1,500 as a grant. Investment of double that can be obtained by an SME.

FedEx small business grants

This funding stream is available to start-ups as well as SMEs which have fewer than 100 employees. Available since 2016, there are only three grants made per year and no commercial loans can be obtained from the scheme. If you are successful with your application, then you could receive a £200,000 grant. Two further grants of £5,000 are on offer each year which are referred to as runners-up prizes.

Barrow cadbury trust grants

Small businesses can obtain grants from this charitable institution. Funding tends to be made available to small businesses which provide some form of social benefit or which will provide a degree of economic upturn in a deprived area. Only grants and no loans are offered to entrepreneurs who are starting out under the Barrow Cadbury Trust scheme. Like the Heritage Lottery Fund, no specific sums are awarded. It is up to you to make a case for the amount of finance you need to get a business plan going.

Financial support for start-ups from the government

Some government-backed grants are only for established businesses with a certain number of employees. Others are for businesses which are operating in certain parts of the country. In fact, some enterprise grants are only awarded to businesses working in certain sectors, such as green technologies or social enterprises. As such, you should not imagine that all start-up funding options are available to you. That said, plenty of funding options are available to early-stage UK businesses, no matter what sort of work they do or where they are.

Innovation vouchers

Business funding in the form of vouchers allows the government to control how its innovation fund is spent. This funding stream allows any new business to access some high-level advice and technical expertise when starting out. You can spend your voucher on help from technology and research institutions or to obtain advice from universities, for example. Many people use their funding voucher to help them set up a computer network or on design ideas. Vouchers of up to £5,000 are available which the recipient then redeems. As such, the programme works like a non-repayable, pre-paid loan.

New enterprise allowance

This government funding idea is designed for people who are becoming self-employed after a period without work. The allowance is worth up to £1,274 per week while you get your own business off the ground. It works for a maximum of 24 weeks. The allowance is usually obtained after a period of claiming benefits, such as universal credit or job seeker’s allowance. This business support programme is administrated by Job Centre Plus.

The childcare business grant scheme

As the name suggests, this funding scheme is designed for new ventures in the field of childcare. The government offers grants to this specific industry because it wants to encourage more people to get into it. Under the programme, you can obtain two types of grant. The larger one is for £1,000 and the smaller is for £500. Only newly registered companies in the field of childcare can apply, however. Don’t apply unless you have fully completed the registration procedure for childcare businesses.

Smart grants

Like the childcare fund mentioned above, Smart Grants are awarded to promote growth in a sector the government would like to see more activity in. Small business grants can be quite sizeable. However, you will have to have a viable business concept and match some of the money you end up receiving from the grant if your application is successful. Only ideas for a technology or science-based discovery with commercial possibilities are considered. If you have one, then you could obtain up to £25,000 so long as you can prove a market exists for your innovation. Once you have proven your concept, then funding of up to £100,000 becomes possible.

Regional grants

Many regional government agencies provide grants to businesses which are starting up in the area in question. As an example, Buckinghamshire Business Growth Grants is a typical programme in the UK. It offers business grants of up to £1,000 within that county. There are others designed for new companies in South West England, Scotland, Wales and the Midlands. All of them can be accessed via the government’s own website. Many such regional government bodies don’t just award grants but provide access to business advisory services, too. Such local advice can often be as valuable as the funding itself.

Catalyst small business grants

This programme is designed to promote technological development in the UK. The grant application process is open to anyone who is developing a business plan for a product or service in industrial biotechnology, sustainable energy, agricultural technology or bio-science. Business grants vary according to the stage your company is at. This means that both established and small business can gain access to finance. Up to 60 per cent of any funding is matched by the government under the award scheme with a maximum of £10,000,000 for the most prestigious projects.

The better broadband subsidy scheme

A fast and reliable communication service is essential for any newly founded business but there are few business loans which are specifically aimed at addressing this issue. Therefore, the government has launched a grant programme instead. Under it, you can obtain up to £350 so long as your business has only just got up and is running. The money awarded to you must be spent on upgrading your broadband connection from a standard one to a fibre optic one. It is only available to businesses in areas where download speeds of up to 2MB/s via regular connections are available. Therefore, it makes sense for many businesspeople located in rural areas to apply for it.