As a UK entrepreneur looking for funding in 2025 you already know that business grants are one of the best ways to secure financial support without having to take on debt.
Grants from the government and sector specific funding all offer a huge opportunity for small businesses, startups and innovative projects.
Within this short guide, we’ll cover some of the best business grants of 2025 in the UK along with how you can go about applying for them.
UK Government Business Grants 2025
Despite the depressing, and somewhat none optimistic reports you may hear on other news websites, the UK government still offers a variety of grants and funding schemes to help small businesses grow.
You can find these grants using the GOV.UK Find a Grant tool to discover which grants are available and most suitable for your business based on your location, sector and business size.
Why check GOV.UK grants?
- Grants are often none-repayable for eligible businesses
- Great options for start-ups and new SME’s
- Regional funding is usually on offer around England, Scotland, Wales and Northern Ireland
To find out more visit the GOV.UK Find a Grant website.
Research & Development (R&D) Grants
For UK businesses that are developing new and innovative products, services or processes you may be able to patch into a range of R&D Grants, these are not to be confused with R&D Tax Credits.
Funding of this nature is ideal for technology startups software developers and companies that are looking to invest in new processes.
The name of the organisation most associated with R&D Grants is UK Research and Innovation (UKRI).
Some of the key processes of R&D Grants include:
- Funding for innovative and technological projects
- Like most of the grants they are none repayable
- Helps reduce the cost of experimentation, prototyping and testing
Further details and to apply for a Research and Development Grant can be found via the official UKRI website.
Local and regional grants
Some local councils and regional development agencies may offer small grants for businesses in their communities. The purpose of these grants are more to assist your business with training, equipment, expansion and business growth initiatives.
Some examples of regional grants include:
- Scottish Enterprise grant for Sottish SME’s
- Welsh Government business support program
- Local council business development grants.
These grants will be few and far between and if you are fortunate to be an area that offers them please do apply even if you don’t think you’re going to be eligible.
Check your local authority website for additional details around grants in your local area.
Business Start-up & Innovation Grants
For businesses that are looking to develop an innovative product and are classed as a start-up you may be able to apply for a start-up focused grant.
These kind of grants can provide crucial early stage support. Programs such as SMART Scotland and local innovation hubs may be able to offer grants, mentoring and networking opportunities for creative and tech based entrepreneurs.
The benefits of applying for a start-up and innovation grant include:
- Perfect for businesses at the very early stages of their business, specifically start-ups
- Covers solely R&D, business planning and product development.
- Often includes mentoring and guidance.
Sector Specific Grants
Some sectors, will have organisations that will offer grants. These sectors include, agriculture, technology and potentially creative sectors.
Some examples of funding organisations that maybe able to help you include:
- Royal Countryside Fund:- Supporting rural businesses and family farms
- Creative England:- funding for media, film and creative businesses
Sector specific grants can provide funding, exposure and industry expertise that other general grants may not be able to provide.
If you are considering applying for any grants that we have listed or perhaps you have found a grant you want to apply for, we have a few tips for you:
- Always ensure you check your eligibility carefully, some grants have a specific set of requirements and going for grants that you may not be eligible for is just going to waste your time.
- Ensure you have a detailed business plan, show how the funds will be used, be as open and clear as you can be about your project and/or idea.
- Apply early, don’t leave everything to the last minute. Remember some awards operate on a first come first served basis.
- Use Excel to keep a record of the funding pots you have applied for complete with communications and deadlines.
UK grant funding is still a possibility for businesses that are starting out, especially if your project is innovative.
Explore what the UK government grant finder can help you with, network and meet with other people to help find additional funding streams in your area.
Even small grants can make a huge difference to a new businesses cash flow, not to mentioned the added bonus that come with strategic applications.
