Are Grants Just for Big Businesses?
Grant funding isn't just for the industry giants. Learn more about grants for small businesses and startups, and if you could be eligible for funding.
When you think of grants, you might picture large corporations securing big cheques to fund high-stakes projects. But are grants really only for big businesses?
In short, no. Grants aren’t just for industry giants; they’re accessible to small businesses, startups, and even solo entrepreneurs. In fact, small and medium enterprises (SMEs) can be prime candidates for many grant opportunities aimed at innovation, growth, and community development.
Don’t believe us? We’ve helped more than 650 startups secure funding to fuel innovation, totalling over £150M!
Here’s everything you need to know about securing a grant for your small business…
Small business grants are funds awarded to businesses – typically by the government – to support specific initiatives or projects. Unlike loans, grants do not require repayment, which makes them a highly valuable resource for small businesses in need of financial assistance without incurring debt.
These startup grants are also non-dilutive, meaning you don’t need to give up equity or sacrifice ownership. The UK government has pledged to help SMEs with plenty of funding up for grabs!
One thing to be aware of is that government grants for small businesses have certain requirements and conditions, from who can apply to how the funds can be used.
“In fact, many grants are tailored specifically to smaller businesses to ensure they get a fair shot. Government agencies and private institutions often see the value in helping smaller businesses and local organisations grow. Supporting SMEs, after all, can boost employment and local economies, and encourage innovation.
“Grant-writing expertise and services are available to help with the nitty-gritty application process to support those who are short on time and help level out the playing field. Using Grantify is actually proven to be seven times faster than applying alone!"
So, what makes a small business ‘grant-worthy’? While grants are available, competition can be stiff, and businesses need to align well with the grant’s requirements to be eligible, which will vary depending on the grant you’re applying for. Here are some traits that grant reviewers look for in applicants:
- Innovation: Grant assessors look for fresh ideas that could potentially change an industry or positively impact society.
- Social impact: Many grants emphasise community development and the social impact of a project. This is especially true for non-profit grants, but even for-profit companies can appeal to this criterion if they’re creating positive change.
- Clear, viable plan: A strong business plan, with a well-defined purpose for the grant money, is critical. The business should be able to outline how they’ll use the funds and the anticipated outcomes.
- Long-term potential: Grants – especially those from government sources – often aim to support businesses with lasting potential. Businesses that show resilience, scalability, and a forward-thinking approach have a better chance of securing funding.
Small business grants in the UK cater to various needs. Government-backed options like Innovate UK grants support research, development, and innovation, while local councils often provide regional grants to boost local economies. Industry-specific funding is also available and targets sectors such as green energy or healthcare. There are dedicated grants for startups, as well as those for minority- and women-owned businesses to promote inclusivity.
Let’s go into more detail about the best grants for small businesses in the UK with game-changing tech innovations…
Innovate UK Smart Grant
The Innovate UK Smart Grant is part of Innovate UK’s initiative to fund game-changing and disruptive tech ideas. It’s open to businesses based in the UK and aims to support commercially-viable innovations with strong market potential. Businesses can receive up to £1 million in funding with the Smart Grant!
EIC Accelerator Grant
The EIC Accelerator Grant is part of the European Innovation Council (EIC) initiative, which funds SMEs developing high-risk, high-potential innovations. It’s specifically designed for small businesses and startups across Europe that are working on breakthrough ideas but need financial support to bridge the gap from research to market. Through the Accelerator Grant, businesses can receive up to £2.1 million in funding.
Government grants, like the EIC Accelerator and Innovate UK Smart Grant, provide not only funding but also credibility and networking opportunities that can help small businesses build momentum in their industries. Grants address the unique needs of SMEs in the following ways:
1. De-Risking Innovation
Got big ideas? Turn them into a reality with no holding back! For many SMEs, funding is a critical barrier to innovation. These grants help reduce the financial risk associated with ambitious projects, enabling smaller businesses to pursue bold, high-impact ventures.
2. Scaling Potential
With the ability to fund larger, scalable projects with non-dilutive funding (as in Innovate UK Smart Grants), these grants help SMEs grow rapidly, bridging the gap to larger markets and investors. And once funding is granted, you receive an additional seal of approval that helps support more favourable investment and future funding.
3. Tailored Support
With such grants, additional support beyond funding is also available, for instance coaching, investor introductions, and commercialisation guidance. This support is invaluable for smaller businesses that may lack in-house resources.
Working first-hand with hundreds of small business owners, we understand the unique challenges you face when applying for grants, such as:
1. Application Complexity
Grant applications can be detailed and time-consuming. Small businesses with limited staff might struggle to dedicate time to these lengthy processes, but don’t worry - you're not alone! Working with grant experts who know the process inside-out can be a game-changer. They understand exactly what grant assessors are looking for and handle the bulk of the work, streamlining the application process and freeing up your time to focus on the key aspects of growing your business.
2. Financial Requirements
The financial requirements of grants can pose challenges for small businesses due to the need for detailed financial planning, compliance with subsidy control regulations, and the ability to co-fund a portion of project costs. We recommend keeping thorough financial records and hiring a trusted accountant where applicable to help you prepare accurate financial statements.
3. Grant Competition
You may feel overshadowed by larger, established competitors, especially when it comes to national or industry-wide grants but don’t let this get in the way. If you know you’ve got something great to offer, then go for it. You can also try focusing on niche or local grants to sidestep some of this competition and improve your chances.
Grant writing is an art form that takes experience, proven strategies for success and, most importantly, time. Here’s the good news: securing these grants doesn’t have to be overwhelming. By 2028, our goal is to help many more innovative tech businesses like yours secure $1 billion in funding to bring pioneering ideas to market. Our advanced AI platform paired with our expert grant-writing team help you navigate the complexities of the application process.
We’ve seen first-hand the impact that grant funding can have, and we believe that small and medium-sized businesses deserve a fair share of the pie. With our expertise and industry insight, you can maximise your chances of securing funds and join the hundreds of businesses we’ve helped reach their potential with grant support.
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