If you are setting up a new business, you may find that you are able to receive government funding to help you with your venture. A grant can be extremely helpful as it will not have to be paid back as long as you keep to the conditions outlined within it when it is awarded to you. If you break the strict conditions attached to your grant, often you will be required to repay the full grant amount.
Some government support for new businesses is based on geographical location with the grants being awarded to businesses beginning in area which are in need of economic regeneration.
Grants may be tailored to push for growth in specific trade or sector. You may be able to receive a grant if you are developing a business in a supported industry. Grants are awarded to businesses pairing with universities to research areas which are of mutual interest. Also grants are awarded to businesses that need help with aspects of start-up such as staff training, international opportunities, finance and business growth.
However, you must be aware that even if your venture is in an area often supported by the government, you will likely only be able to receive financial support if you apply before the project has begun, not after. Also, some sectors are actually subject to guidelines limiting the amount of government funding they can receive.
Other factor affecting grants
Size of the business: more grants are awarded to smaller businesses, those employing less than 250 people.
Purpose of the grant: your team will need to come across as driven and committed and there will need to be a specific target to be reached. For example your grant may be intended to develop export links for your company.
Groups: women, mature people, people with disabilities, ethnic minorities and young people all have organisations who seek to support entrepreneurs like you with your projects.
Grants are available from a wide range of sources, some charities even offer support for fledgling businesses. The most common bodies awarding grants are:-
the European Union
Scottish Enterprise, Highlands and Islands Enterprise, the Welsh Government and Invest Northern Ireland
local authorities or local councils and local development agencies
Most of these providers will expect you to match the grant amount you are being awarded with your own alternative funds, the amount of matching required depends on the grant. These funds may come from an investor, the business owners, a loan, or previous profits. Some grants, such as research grants, require the business to find 40% of the funding and the grant provides 60%. However, the matching figures are likely to be higher if you are taking on a project such as refurbishment.
To look at options for new business funding, contact us today. http://www.ukbusinessfundingsolutions.co.uk/
UK Business Funding Solutions are experts in traditional funding methods. http://www.ukbusinessfundingsolutions.co.uk/traditional-funding-methods/
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