Do you always dream of starting a new small business in the UK but couldn’t make it true because of monetary issues?
Or, are you planning to expand your already existing small business if you get some monetary support?
Then, stop thinking and start acting! Do you know that the UK government gives enough funding to small businessmen like you so that you people can grow your business?
The amount of money the government gives as grants helps various businesses. It helps them to pursue innovation, expand their operations, and so on.
These grants bring economic prosperity to the nation.
So, don’t you think that you can be the next receiver of government grants for small businesses in the UK? For that just the application needs to be selected, that’s all!
Hey! It’s time to apply now for the grants and grow your business! Don’t have much knowledge about the application process and other things about the UK government grants for small businesses?
Don’t worry because we are going to cover everything up in this writing. You will get to know everything about the government business grants in the UK.
The details about them will range from their importance and types to the eligibility, application process, and more. Keep reading.
Government Grants for Small Business UK – How They Help?
The government grants for businesses in the UK, acting as a catalyst for their growth, to thrive in the competitive market. They do it by supporting them financially.
The monetary support that the UK government grants for small businesses provides, helps the businesses acquire all necessary resources.
These resources are needed for their growth, innovations, and prosperity. The grants offer them with the facilities of –
- Accessing capital with no concern of repayment.
- Research and advancement.
- Business expansion.
- Working for innovations.
- Competing with the business rivals, etc.
Also, these grants benefit the society and the nation indirectly through –
- Economic growth of the nation.
- Job creation.
- Giving birth to a dynamic entrepreneurial ecosystem.
UK Government Grants for Small Business – Their Different Types
1. Grants for startup businesses
These types of grants are for those who are novices in the world of business. The funding of these grants helps them start their new venture without taking any loan burden or stress.
The money can help them cover the following initial costs of their businesses-
- The cost of the equipment.
- Marketing expenses.
- Overhead expenses, etc.
2. Grants for innovation and research
These grants usually support already existing small businesses in research and development activities. Other than this, the grant encourages them to –
- Get engaged in work related to technological advancements.
- Work for product innovation.
- Commercialize fresh and new ideas.
3. Grants for growth and expansion
These types of government grants for small businesses in the UK are also for existing businesses. They give businesses money so that they can –
- Expand their operations.
- Grow their customer base.
- Enter new markets.
- Scale up their business activities.
4. Grants for specific industries
Again, there are also government grants for some specific industry sectors. These sectors include-
- Technology.
- Green energy.
- Healthcare.
- Manufacturing, etc.
By applying for this type of grant, you can expect to get the funds for the innovation and growth of the above or other specific sectors.
Government Grants UK – The Eligibility Criteria for Getting Them
The eligibility criteria for these grants differ for different businesses. It depends on the –
- Size of the business.
- Nature of the business.
- The business’s proposed activities.
- The business’s geographic location.
- The level of abidance of the business to the funding agency’s criteria.
However, in general, the common eligibility requirements for getting the UK government grants for small businesses are –
- The business registration’s proof.
- The presentation paper for financial need.
- Adherence to industry regulations.
- Alignment with grant objectives.
So, no matter what type of business you have, don’t just hurry to get government grants. First, ensure that you and your business meet all the eligibility criteria for getting the grants. Then move forward towards getting them.
Government Grants for Small Business UK – How to Find Them?
To find out what type of government grants for small business, UK your business is entitled to apply, do the following –
- Explore the official websites of the UK government.
- Enter the government portals to search for the grants.
- Go through the funding opportunity providing databases.
- Fix an appointment with any business support organization. You can choose chambers of commerce, industry associations etc for the same. They will give you a comprehensive idea about the UK government grants for small businesses.
- Take professional help from various advisors and ask any of them to help you get business identity-relevant funding. The advisors may include lawyers, consultants, etc. They will also prepare a grant application for you.
Getting Government Grants – The Application Process
The application process for government grants for small businesses, in the UK involves the following steps-
- Researching available grants.
- Completing the application form for the grant that is suitable for your business.
- Gathering the necessary documents and submitting those that are asked for submission.
- Submitting proposals to various agencies that are giving the funds.
Be careful as you fill out the application form. Submit only the genuine information and documents. Also, the information must be comprehensive.
The guidelines on the application must be strictly followed. Also, don’t forget to see the deadlines. The founder of the business must give a strong reason behind the application for the grant. Some of the more tips include –
- Assert the project objectives.
- Demonstrate the business’s alignment with grant objectives.
- Showcase the business’s positive sides like its potential, accomplishments, etc.
- Get your grant application and documents checked by different mentors and advisors. Once they are submitted, it will be impossible for you to rectify the mistakes, if any.
Successful Utilization Of the UK Government Grants – A Case Study
Now let’s talk about the example of a successful utilization of the grants given by the government. It will give you the required experience for running a business successfully with the help of grants. Also, it will help you to –
- Identify common challenges in business.
- Analyze the opportunities that you should grab while running your business.
- Get success in your grant-seeking endeavours.
Here’s a case study –
- CCP-EM:
It’s regarding a collaborative project that is related to computation for electron cryo-microscopy.
This project is based on the belief that precise knowledge about the functioning of cells in our body is the best way to find doors to combat diseases.
The cryo-EM provides us with detailed knowledge about the interaction between cells and molecules.
It tells us how the locations of these cells and molecules affect our body’s health. All these research data are gathered with the help of Cryo-EM’s specialist software.
However, the scientists discovered that this software needed to be improved by making partnerships between the UK software developers and the customers. It required a certain amount of funds.
So, they sought a grant from the UK government. And, for your information, this business experienced a huge success. The success came from –
- The multidisciplinary collaborative partnership. This partnership was made among the different groups of scientists.
- The computational support of the Cryo-Electron Microscopy. This support was given for the enhancement of the number of biologists (who work in the structural and cellular fields).
- Recent investment in the infrastructure of Cryo-EM by the UK government (builds on existing investments).
- The availability of open-source software and cutting-edge technologies (bought through the grant fund). These technologies and software enhance the speed and accuracy of the processing of experimental data.
- High-value community support.
- Regular workshops, courses, etc.
Managing Government Grants – Obligations And Responsibilities
Wondering, what responsibilities and obligations come on you once you get the grants?
Well! Once you get the UK government grants for small businesses, you should be more responsible towards your adherence to the rules. You should –
Thoroughly follow the terms and conditions that the funding agency gives you. Also, you must take care of the –
- Reporting requirements.
- Compliance obligations.
- Limited usage of the funds, etc.
Not following them will charge you with –
- Unwanted penalties.
- Funding denial.
- Damage to your prestige and also that of your business.
To avoid these unwanted results, do the following –
- Maintain accurate records.
- Be punctual in fulfilling reporting obligations.
- Talk freely with the agencies who are ready to fund your business. Try to make sure about the ongoing compliance from them. Also, they will tell you about the success of grant management.
UK Government Grants for Small Business – The Alternatives
Didn’t get government grants even after applying? Want to explore alternative options for your business funding?
Of course, we have kept the alternative options for it covered. The alternatives for the government grants for small businesses UK include-
- Loans.
- Crowdfunding.
- Venture capital.
- Angel investment.
- Business incubators.
Each of these alternatives for government grants comes with both positive and negative sides. So, you should assess them carefully before choosing any of them for your business fund.
Evaluating the following will help you determine the financial strategy that is appropriate for your business funding –
- Your financial needs.
- Risk tolerance.
- Growth objectives, etc.
FAQ
1. Can I get a grant to start a business UK?
Grants and loans are very important for small businesses. However, many businessmen lack confidence and think that their applications will get rejected. In this false belief, they delay the application process.
Also, some entrepreneurs don’t have proper knowledge about these grants. They think that the process is time-consuming.
But, in reality, it’s just the opposite. The process of registration for the same gets completed within a few minutes. Also, some people think that they might not be eligible for the process.
All these are only false assumptions. Every businessman must realize that the UK government has made this grant for their small business.
So, they are allowed to apply for the process and receive the grants applicable to their businesses. It will make their business grow and expand without any additional financial burden.
Conclusion
So, government grants are the most valuable support when it comes to small businesses in the UK. With it’s help, any business gets the financial power to –
- Set up the company.
- Innovate new products.
- Grow and expand.
- Struggle and set up a unique place in this competitive market.
Getting the grants for your business requires a deep knowledge of it. First, check the eligibility criteria of the government grants for small businesses, in the UK and apply accordingly.
You need to know which grants are presently available and check if it is suitable for your business growth or not. In case you think a grant suits your business very well and is available, go for the application process. Fill up the application carefully and gather the required documents to suit them once asked.
Remember, the grant of the funding for your business increases your responsibility towards the management of the business. To make your business progress further with the help of the grant, seek professional advice. Also, researching intensely about the success of a business will help you get to the top. Lastly, smart work matters for achieving your goals.
