Top 10 UK Startup Grants And Social Enterprise Funding Sources

The UK government spent £172 billion on grants in 2024, with the Department for Education accounting for £70.2 billion (41%) of the total. Here are the top 10 UK startup grants and social enterprise sources.  

Starting a business is a journey filled with excitement and challenges, particularly when it comes to securing essential funding. 

For many start-ups and SMEs in the UK, a well-timed cash injection can make all the difference, whether it’s to renovate a space, launch an innovative project, or simply sustain growth. With around 20% of start-ups failing within their first year, accessing financial support can be the critical boost needed to thrive.

The UK offers a wide range of grants and funding opportunities tailored to support businesses in their early stages. The government spent £172 billion on grants in 2024, with the Department for Education accounting for £70.2 billion (41%) of the total. However, navigating the application process and understanding eligibility can feel overwhelming.

In this article, we’ll explore some of the most valuable government grants available for start-ups and SMEs in the UK. We’ll highlight who qualifies, the key benefits of each programme, and how to apply—making it easier for you to secure the funding your business needs to succeed.

Top funding opportunities for startups and social enterprises

1. Funding Opportunity: EIC Accelerator

The European Innovation Council (EIC) Accelerator is a premier funding programme under Horizon Europe, tailored to support start-ups and small to medium enterprises (SMEs) with innovative, game-changing ideas. It targets projects capable of creating new markets or disrupting existing ones in Europe and globally, offering much-needed financial backing where private investment may be too risky.

Key Highlights:

• Purpose: Develop and scale-up innovations at Technology Readiness Levels (TRL) 6–8, aligning with the patient capital principle.
• Eligibility: Open to single start-ups, SMEs, individuals planning to launch SMEs, and small mid-caps (for equity-only). UK applicants are limited to the "grant-only" scheme.
• Funding: Provides lump-sum contributions of up to €2.5 million for innovation activities to be completed within 24 months.

Application Process:

• Write a Short Proposal: Submit any time for remote evaluation by EIC experts on a first-come basis.
• Prepare a Full Proposal: Include a detailed business plan, pitch deck, and a three-minute video pitch. Submissions align with cut-offs in 2025–2026.
• Pitch Your Innovation: Present to an EIC jury in an interview, conducted 4–5 weeks after the previous evaluation results.
• Negotiate Terms: Finalise the grant component and begin due diligence for any investment components.

2. Funding Opportunity: Business Growth Fund (BGF)

The Business Growth Fund (BGF) is designed for SMEs seeking to scale up through long-term, flexible funding and expert support. With a patient investment model, BGF provides minority capital without taking a controlling equity stake, ensuring entrepreneurs maintain control.

Key Highlights:

• Purpose: Supports SMEs at various growth stages, including climate, deep tech, life sciences ventures, and small cap quoted companies.
• Eligibility:
  • Based in the UK or Ireland.
  • Turnover of £2m or more.
  • Strong track record and growth strategy.
  • Typically profitable (not pre-revenue or a start-up).
  • Not FCA-regulated.
• Funding: Offers investments between £1m and £20m.

3. Funding Opportunity: Innovate UK Contracts for Innovation

Innovate UK’s Contracts for Innovation provides public sector organisations with a flexible mechanism to address specific challenges requiring research and development. This funding opportunity enables organisations to run competitive processes and award contracts for creating new products or services, developed with input from end users, for use by the challenge owner.

Key Highlights:

• Purpose: Supports R&D initiatives, including early-stage feasibility studies, prototype development, and late-stage demonstrator projects.
• Eligibility: Open to organisations of all sizes, including businesses, academic institutions, research organisations, not-for-profit organisations, and charities. No restrictions on the size of contract awards.
• Flexibility: Public sector organisations can design competitions to meet specific needs.

Innovate UK Support:

• Capacity-building for public sector organisations.
• Assistance with running or fully managing competitions.
• Promotion of funding opportunities to applicants.
• Tailored support based on the challenge owner’s requirements.

4. Funding Opportunity: Awards for Social Entrepreneurs

This programme supports social entrepreneurs committed to creating a sustainable social impact. Combining funding and expert guidance, the initiative helps develop and scale social ventures that positively affect people’s lives, communities, or the planet.

Key Highlights:

• Grants: Funding up to £18,000, tailored to the stage of development:
  • Starting Up: Up to £8,000 for early-stage ventures beginning to create social impact.
  • Scaling Up: Up to £18,000 for established ventures with proven impact and ambitions for growth.
• Programmes: Award winners gain access to tailored advice, guidance, and expertise to enhance their social venture’s impact.

Inclusivity Commitment:

At least 50% of awards are dedicated to supporting social entrepreneurs from disabled and/or Black, Asian, or minority ethnic backgrounds.

5. Funding Opportunity: Hult Prize Global Competition

The Hult Prize is a global competition that challenges students to address pressing world issues by creating innovative social ventures. Each year, participants compete for a chance to win $1 million in funding to bring their impactful ideas to life.

Key Highlights:

• Eligibility: Open to teams where all members are currently enrolled in a degree-seeking programme at any university or college.
• Competition: Participants join a global community of student entrepreneurs, mentors, and experts, working to earn a spot in the Global Finals.
• Prize: The winning team receives $1 million in funding to scale their social venture.

6. The Prince’s Trust Enterprise Programme
This programme supports young entrepreneurs aged 18 to 30 in starting and growing their businesses. By combining funding, low-interest loans, and mentorship, the initiative helps individuals develop their entrepreneurial ventures at various stages of their journey.

Key Highlights:

• Grants and Loans: Funding up to £5,000 in grants, with additional low-interest loan options tailored to business needs.
• Mentorship: Access to tailored advice and guidance to support entrepreneurial growth and success.

Eligibility:

• UK residents aged 18 to 30.
• Individuals who are unemployed, working less than 16 hours per week, or in education.

7. Business Board Network Growth Hubs
This programme supports local businesses through a network of public-private partnerships led by local business boards. Growth Hubs connect national and local business support, making it easier for businesses to access the help they need to thrive and contribute to regional economic growth.

Key Highlights:

• Wide Reach: Over 1.6 million businesses supported in the last year.
• Comprehensive Guidance: Access to national resources via the www.gov.uk website and the Business Support Helpline, offering advice on starting and scaling businesses.
• Funding Opportunities: Regional Growth Fund programmes provide funding to startups and small businesses, with a focus on job creation and boosting local economies.
• Eligibility:
  Varies by region, prioritising initiatives that foster economic growth and generate employment opportunities.

8. The Small Business Research Initiative (SBRI)
This programme connects public sector challenges with innovative business solutions. By fostering collaboration, it enables startups and small businesses to develop products or services that address public sector needs, with opportunities for long-term contracts.

Key Highlights:

• Funding Opportunities:
  • Phase 1: Up to £100,000 to develop and test initial ideas.
  • Subsequent Phases: Potential for additional funding to refine and scale solutions.
• Contract Potential: Successful projects may secure long-term public sector contracts.
• Eligibility:
  UK businesses of any size, including startups, focused on delivering innovative solutions to public sector challenges.

9. The Creative Industry Finance Programme

This programme provided business advice and access to finance for creative and cultural enterprises of all sizes across England. Launched as a pilot in London and Yorkshire and the Humber in 2012, it was expanded nationwide with support from Arts Council England until March 2017. The initiative supported the growth and talent development of a diverse range of cultural and creative businesses, from micro enterprises to large-scale institutions, offering free business advice and financial access to foster sustainable development.

Key Highlights:

• Business Advice: Free, tailored guidance to help creative enterprises develop and grow.
• Access to Finance: Financial support enabling businesses to scale and sustain operations.
• Programme Expansion: Initially piloted in London and Yorkshire and the Humber in 2012, later expanded across all of England.
• Support Range: Catered to a wide spectrum of cultural and creative enterprises, from micro businesses to large-scale institutions.

Eligibility:

• Creative and cultural enterprises of any size based in England.

10.  SMART: Scotland Grants

This programme supports startups and businesses in Scotland by providing grants for research and development (R&D) projects aimed at creating new products or services. It fosters innovation by covering a significant portion of project costs, helping businesses turn ideas into tangible outcomes.

Key Highlights:

• Funding Opportunities: Grants covering up to 70% of R&D project costs, typically ranging from £25,000 to £100,000.
• Innovation Focus: Designed to support the development of new, innovative products or services.
• Eligibility:
  Scottish startups and businesses committed to innovation and engaged in R&D activities.