A Guide To UK Small Business Grants

Small businesses are the backbone of the UK economy, accounting for over 99% of all businesses and employing around 60% of the private sector workforce. However, they often face significant challenges, including limited resources, high costs, and fierce competition. Various grants are available to UK small businesses to help these businesses grow and succeed.

This article will explore some of the most popular grants available and how small businesses can apply for them. While numerous grants are available to help small businesses grow and succeed, it is essential to understand the eligibility criteria and how to apply for them to make the most of the available resources.

Grants for Small Businesses: What are They?

There are certain eligibility criteria exist for small business grants, such as the business being located in a particular region, the number of employees, or the commitment to innovation. The amount of funding available can vary widely, from a few thousand pounds to several million, depending on the specific grant program and the needs of the business.

Types of grants –

Direct grant: Direct grants are funds given to individuals or organisations. They can vary in amount and duration, depending on the purpose for which they are awarded. They are often subject to specific restrictions and reporting requirements.

Resource and training grants: In the UK, resource and training grants are available to individuals and businesses. Innovate UK provides a voucher of £5,000 for businesses to enlist expert help. Other resources come in the form of reliefs, such as tax relief [The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS)], business rates relief, employment allowance, corporation tax relief, and enterprise zones. These options help businesses save on income and reduce costs.

However, the grant application process can be competitive and time-consuming, and businesses may be required to provide detailed business plans, financial projections, and other documentation to support their application.

Available Small Business UK grants

In the UK, small business grants are available in varying numbers depending on deadlines, new schemes, and expiring grants. Local business hubs, the government’s funding search tool, and industry organisations can inform you of the latest funding opportunities.

Knowledge Transfer Partnerships (KTP): With this grant, your business can obtain the expertise and skills it needs to achieve innovative projects and make a positive impact. The grant covers up to 67% of project costs for SMEs and up to 50% for larger businesses, with the total costs ranging between £75,000 and £90,000 per project year. As part of the grant, your business can access specialist resources, expert consultation from a wider network, and expert input and advice.

Power to Change Programmes: These grants support community enterprises contributing to the local economy. They range from £1,000 to £40,000. In addition to grant funding, they also offer expert support and advice.

UK Trade Show Programme: This grant is for export businesses with an annual turnover between £250,000 and £5 million looking to exhibit at overseas trade shows. The program can provide grants of £2,000 or £4,000 to cover exhibition costs, stand costs (including design, construction, and dressing), conference fees, and promotional materials.

UnLtd Social Enterprise Funding: These awards provide grants of up to £8,000 for social businesses running under one year and up to £18,000 for social businesses running between one and four years. The funding aims to help businesses targeting lasting social change to grow and expand.

The National Lottery Heritage Fund supports heritage projects aimed at boosting the local economy, enriching the lives of residents, and doing work and visiting a better place. Many projects can take advantage of the grant amount, ranging from £3,000 to £5 million, including training costs, repair and maintenance, professional fees, and other heritage-focused activities.

Getting a Business Grant: Best Practices

Applying for a business grant can be complex and competitive, but you can increase your chances of success with careful preparation and attention to detail. Here are some top tips for applying for a business grant:

Research grant opportunities: Before applying for a grant, it’s important to research the various opportunities available. Look for grants relevant to your business and its goals and ensure you meet the eligibility criteria.
Plan your business/project: Grants are typically awarded for specific businesses, projects, or initiatives, so it’s important to have a clear plan. Develop a detailed business plan, including timelines, budgets, and measurable outcomes.
Get your finances in order: Grants often require detailed financial information, including revenue projections, cash flow forecasts, and balance sheets. Ensure your financial records are up-to-date and accurate, and be prepared to provide detailed financial information to support your application.
Demonstrate your impact: Most grant programs require applicants to demonstrate the impact of their project or initiative. Be sure to clearly articulate the benefits of your project, including how it will create jobs, generate revenue, or contribute to the community.
Seek advice and support: Applying for a grant can be daunting, but resources are available to help. Consider working with a business advisor, mentor, or grant writer to help develop your application and improve your chances of success.
Be strategic: Grants are often highly competitive, so your approach must be strategic. Focus on grant programs that best fit your business, and tailor your application to the specific requirements of each program.
Follow the guidelines: Finally, read and follow the grant guidelines carefully. Ensure you understand the application requirements, deadlines, and evaluation criteria, and provide all the information requested in the application.

Is it Worth Obtaining a Small Business Grant?

Various grants are available to UK small businesses to help them grow and succeed. These grants provide access to funding, advice, and support in innovation, marketing, and business planning.

Small businesses looking to access these grants should research the options available and ensure they meet the eligibility criteria before applying. By taking advantage of these grants, small businesses can improve their chances of success and contribute to the growth of the UK economy.

Bio:
Kesar Rana is a content strategist and writer for SaaS, tech, and business brands. Writing long-form content for B2B brands that produce quantifiable leads. You can find Kesar on LinkedIn and Twitter.