Types of Government Grants for New Businesses

The main groups that award government grants for new businesses are government/governing bodies, the European Union, regional development agencies, local authorities, local councils and local development agencies. All awards, in a way, are provided by the government but are given from different denominations. You can find some grants, for example, that are available to business in North West England (regional development agencies) but not available in other areas.

Government grants for new business come in several different forms. The type of grant you receive will depend entirely on the nature of your business venture, the amount you need, what you require the grant for and how you propose to use the grant.

Each awarding body will provide a grant for specific businesses and type to encourage businesses to start in certain sectors - if you're starting a business in a sector that the government is willing to fund more than others then you can obviously expect to receive more government finance (for example, overseas trading is being encouraged by local authorities and these kind of new businesses are being funded for this work, whereas marketing companies are overcrowding some cities and aren't too appealing for a government to fund).

Currently, the main type of government grants available to new businesses are:

  • Grants for Business Investment (GBI);
  • Grants for innovation, research and development;
  • Solutions for Business Grants;
  • Access to Knowledge grants;
  • Skills and training grants.

Government grants for new businesses are largely influenced by the area you operate in, so it's likely a different agency will oversee one of these grants you require. Businesslink.gov.uk is an excellent resource start up businesses and can provide you with a list of authorities that deal with each scheme, grant and region. You can also contact a Businesslink centre in your local area to receive face to face business advice on money and finance.

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