Grants and funding options to consider for your small business

October 24, 2023

Working for yourself can be lonely and isolating – and it can often feel like there’s little to no support out there to help entrepreneurs like you succeed. But this couldn’t be further from the truth.

There are lots of government-run grants and schemes available to British entrepreneurs who are looking to access extra resources to expand their businesses.

It would be impossible to list all the available national or regional funding opportunities in one article, but here are some of the most popular schemes that are open to new applicants in the UK. Each one will have its own eligibility criteria, of course, so make sure you check the scheme’s website or enquire for more information before you submit an application on behalf of your company.

British Council Grants

If you’re looking for funding for research, travel, and/or workshops on topics relating to public health, climate change, and general education, try looking at the British Council government grants that are administered through Going Global Partnerships. According to the British Council website, this money can be used to facilitate partnerships with educational bodies (such as universities and colleges) and education policy makers.

Seed Enterprise Investment Scheme (SEIS)

The SEIS was set up in 2011 to provide better tax incentives for investors who want to support new businesses. SEIS investors can place a maximum of £100,000 into one or more companies in a single tax year – and if it ticks the scheme’s boxes, your venture could be one of them! You can learn more about listing your start-up for inclusion in the SEIS here. (As an aside, although there are obviously lots of financial benefits to becoming part of SEIS, you’ll also potentially gain access to more experienced businesspeople who will be able to advise you on achieving faster growth. So, it’s a great option for those of you who want a quick cash injection AND the chance to learn from some of the brightest business minds out there.)

The Prince’s Trust Enterprise Programme

The Prince’s Trust provides training, mentoring and financial support to help businesses develop their best ideas, then launch their products or services for the biggest impact. The Prince’s Trust programme offers grants of up to £250 to UK citizens who are aged between 16 and 30. There are some strict entry criteria for the Trust’s Enterprise scheme (which you can learn more about here). If you would like to get help for your business from The Prince’s Trust, you must either be unemployed, working less than 16 hours a week, or studying for less than 14 hours a week.

Innovate UK

Innovate UK is the UK’s national innovation agency which leads the way in business innovation in all sectors, technologies, and areas across the country. Crucially, it helps small companies hit their research and development goals by providing funding at various points throughout the year. Click here to find out how to apply for funding.

Local Enterprise Partnerships (LEPs)

There are currently 38 Local Enterprise Partnerships (LEPs) between local authorities and businesses in the UK, and they are all managed within Growth Hubs in different regions. According to the LEP website, LEPs exist to empower local companies, generate private investment, and boost jobs and skills, amongst other benefits. As of April 2024, the government will stop sponsoring local LEPs (although some of them might continue operating if their local democratic institutions want them to). There might still be an opportunity to leverage investment through your local LEP, but I’d suggest acting quickly to make sure you don’t miss out!

Research & Development Tax Credit Scheme

They are not government ‘grants’, but you might be able to get research and development (R&D) tax credits applied to your business if you can prove that some of your resources are going towards innovative (aka, never-seen-before!) projects in the fields of science and technology. If you are investing in new products, services, systems, or processes, it’s worth a look at the gov.uk website to see if your project counts as R&D. You might even be eligible for this relief if your project is unsuccessful.

Whichever scheme you go for, it’s important that your bookkeeper is aware of any applications you’re making, and whether they are successful or not. They will need to make sure your grants and awards are properly reflected in your profit and loss account, and that any repayments are recorded and tracked correctly for tax purposes.

On the flip side, if you are just about to apply for funding, you will normally need to show up to date profit and loss records so the organisation can build an accurate picture of your current finances. It’s yet another reason to make sure you stay on top of your books – or outsource this important work to someone who can look after this aspect of your business all year round!

Looking for new ways to finance your business activities?

Contact me for advice or to discuss your bookkeeping needs in more detail. You can reach me on 07824 374346 or hello@ebbooks.co.uk.