Applying for and utilizing grants successfully can be confusing for small business owners, especially those new to the world of grant funding.
Grants are available from various sources, including the public sector, private sector, universities, and the government. In the UK alone, there are over 100 government grants specifically for small businesses.
Given the high demand for funding among smaller companies, it’s essential to explore external funding opportunities. According to the latest SME Finance Survey, 19% of small and medium-sized businesses are planning to apply for government or local government grant funding in the next year.
Types of Grants for Small Businesses
Public Sector: Government-controlled and funded grants.
Private Sector: Grants provided by privately owned firms.
Local Council/Local Authority: Grants from local councils to support job creation, high street regeneration, or environmental improvements.
University: Grants offered by universities for innovative projects.
Competitions: Opportunities for small businesses to compete for grant funding based on specific criteria.
Finding the Right Grants
Researching grant opportunities that align with your business values is crucial. Utilize your network and industry publications to stay updated on available grants. Prioritize grants that offer more than just funding, such as strategic partnerships and guidance.
Choosing the Right Grant
Consider applying for a mix of grants that align with your business goals. Look into government and local council grants, as well as competitions that may suit your business. Read the grant specifications carefully and focus on grants that match your business category.
Deciding How to Use Grant Funds
Have a specific project in mind for the grant money that will benefit your business. Ensure that your spending aligns with the grant requirements and your business goals. Be prepared to provide results and follow the grant guidelines.
Increasing Your Chances of Success
Develop a bank of answers for common grant application questions and seek insights from other grant recipients. Craft a compelling story about your business and engage with the media to create visibility. Reach out to funders for support and clarification.
Preparing for Your Grant Application
Ensure your financials and business plan are solid before applying for a grant. Seek guidance from businesses that have applied for similar grants and be mindful of the funding amount you request to avoid financial strain.
Alternatives to Grants
Consider equity finance, loans, or crowdfunding as alternatives to traditional grants. Angel investors can also provide valuable support and funding for small businesses.
Read more on funding
Explore 150 UK small business grants, understand the benefits of working with angel investors, and learn about the importance of EIS and SEIS tax relief schemes.