There are various government grants available for entrepreneurs. These sources of finance can help an enterprise become established, and assist with development costs. They can also provide much-needed encouragement to a struggling small business.
The Grant for Business Investment
The Grant for Business Investment scheme was a historical program that provided money to obtain equipment, rent or buy premises, promote the creation of new jobs, and maintain existing employment.
The scheme comes under the government’s Solutions for Business initiative. Any grants the government decides to award must help a business expand, and become modernised and more efficient. An entrepreneur who applies for a grant must give details of the project’s size, the proposed increase in productivity, and the skills of the current and anticipated employees.
Sums available start at £10,000, and there is no upper limit.
In Scotland and Northern Ireland, these business grants had alternative names: the Grant for Regional Selective Assistance, and the Enterprise NI Loan Fund respectively.
The Government Grant for Research and Development The purpose of the Government Grant for Research and Development (GGRD) is to finance the creation of technologically innovative products and processes. An individual, a small business, or a medium-sized business can apply.
Although the grant was restricted to England where the Regional Development Agencies administered the scheme, Northern Ireland, Scotland, and Wales each had their own versions.
In England, there are four different business grants available under the auspices of the GGRD. Each refers to a certain type of business project: micro, research, development, exceptional development.
Micro projects last for a maximum of a year. A small business with fewer than ten staff can request up to £20,000.
Research projects last from six to eighteen months. They examine the commercial prospects of new technology. A business with fewer than 50 staff can apply for up to £100,000.
Development projects last from six to thirty six months. They involve the development of products or process prototypes associated with innovative technology. A business with fewer than 250 staff can ask for up to £250,000.
Exceptional development projects also last from six to thirty six months. They relate to technological developments that are vital for a specific industry’s future. There is no restriction on the number of employees a business may have. The grant is up to £500,000.
With all four of these government grants, entrepreneurs must be prepared to use some of their own money.
Train to Gain
Train to Gain was a program that provided training advice about every aspect of commerce and management, and could help a company obtain Investors in People status. An entrepreneur with any size of business can apply.
The scheme works in two ways. A training broker can visit an entrepreneur’s business, and conduct a skills assessment. The broker then recommends a training package; local approved trainers; and funding options that support an entrepreneur’s own financial commitment.
Alternatively, an entrepreneur can contact a local college or trainer direct and request assistance through a Train to Gain arrangement.
Other Funding Sources
Other sources for business grants include both domestic and European initiatives.
- The Department of Health funds research and development projects that improve medical knowledge.
- The National Endowment for Science, Technology and the Arts has a range of grants to encourage projects for new products, services, and processes.
- The European Commission’s Framework Programme offers support to UK companies who would like to work on research and development projects with European partners.
- The European Union’s eContent scheme gives finance to help the expansion of the European digital content sector.
Necessary Support
Entrepreneurs require as much backing as possible. Government grants won’t fund a business start-up, but they can provide the financial boost to help a new or existing venture achieve success.
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