UK grants for SMEs

Types of Grant Funding  

Innovate UK

The UK government has tried to centralise grant funding under the remit of one body, Innovate UK. Innovate UK is the principal funding body in the UK and supports businesses to develop and realise the potential of new ideas and works with businesses across all sectors to support innovation. Innovate UK manages various types of funding opportunities, from industry-specific funds such as ATF to international agreements, such as Eureka. Therefore, Innovate UK is the starting point for most businesses looking for R&D funding. 

Your business can apply for Innovate UK funding if it wishes to test the feasibility of an idea, research and develop it, or demonstrate it in a prototype. In this competitive environment, businesses are most likely to succeed if the application shows how the product does not replicate products currently on the market, and how the advances sought will achieve an appreciable advancement on existing products within the field. Here, applicants will need to cover the innovative technology, background market knowledge, commercialist growth plan, and financial cost of proposed project. 

Innovate UK Smart Grant

The Innovate UK Smart Grant exists as a way to fund novel, game-changing ideas for almost any industry which undertakes commercially viable R&D innovation. The Smart Grants are open to any area of technology and can be applied to any part of the economy. All R&D projects must be business focused with deliverable, realistic, adequately resourced plans to achieve a return on investment, potential to gain market share and generate economic impact. 

In order to be eligible, there are a number of requirements which you must meet. Firstly, your project will need to be an idea for a completely new product, service or process, or a brand-new use or an unprecedented use of an existing product, service or process that is beyond what is currently available. Your project must finish within the specified project timescales. Additionally, you must include one micro, small or medium-sized enterprise (SME) as the lead grant-claiming partner. If leading a project, the business will need to conduct all project work within the UK.

Challenge-led competitions

Most significant opportunities for businesses seeking grant funding exist in four priority areas set out in the government's UK Research and Innovation Challenge Fund. These 'Grand Challenges' include:

• artificial intelligence and the data economy
• ageing society, health, and nutrition
• clean growth and infrastructure
• future of mobility

Throughout the year, Innovate UK will launch various competitions within each of these challenge areas, as well as competitions targeted at other sectors and technologies with significant innovation potential and impact.

The competition scope will specify the category of R&D activity eligible for each particular funding opportunity. If your R&D project meets the needs of one of these challenges, then there is a higher chance of the work being funded than via a highly competitive open grant competition. However, these challenges change throughout the year, and businesses need to keep up to date with what competitions are running to spot an ideal opportunity. We can assist with this grant scouting work, so please get in touch to find out more. 

The Eureka Programme 

The Eureka programme is the biggest international funding programme for SMEs working in R&D. UK businesses are eligible for funding through its network projects, Globalstars, Eurostars, and Cluster programmes. Eureka is not a direct funding instrument, and projects are funded in a de-centralised manner through the funding agencies of the member countries. Therefore, funding for UK businesses can access the schemes through Innovate UK. 

• Globalstars - This is a funding programme which calls for projects undertaking R&D with countries outside of the Eureka network. The project must use R&D to develop an innovative product, service, or process with the goal of commercialisation. To be eligible, your project idea must represent international cooperation in the form of a specific project and will benefit from collaboration with organisations working in a range of leading and emerging markets. 
• Eurostars – This is a European Union funded project led locally by Innovate UK. Eurostars is the largest funding programme for SMEs wishing to collaborate on R&D projects that create innovative products, processes, or services for commercialisation. To be eligible, you must be an SME business working in the UK operating within the tech industry that has the intention of collaborating with other European companies. 
• Cluster programmes – Eureka clusters are industry-led international communities focused on strategic technology areas that aim to meet market needs to solve economic, technological, and societal challenges. Eligible projects will go beyond the state of the art with clear market potential, and result in wider impacts.  

Small business research initiative (SBRI)

SBRI is a pre-commercial programme designed by Innovate UK to encourage private sector businesses to provide innovative solutions to public sector challenges. Through the SBRI, government departments run competitions to seek solutions to specific issues. Competitions generally have different themes and opening dates and deadlines vary throughout the year.

Other grant sources

Other bodies, such as DSTI, the Welcome Trust or UKFT, offer sector-specific grants outside the remit of Innovate UK. These funding bodies are very specific in their requirements to be eligible, so companies should determine the viability of grant funding before submitting an application. Finally, local councils or regional bodies can offer other forms of grant support. 

How to apply for grant funding 

Each funding agency has a different application, rules, and criteria to be eligible under the scheme. Therefore, a grant application will require careful planning and attention to detail to ensure that the proposal will meet the specific requirements of the grant organisation and scheme. 

When submitting a grant application, your financial plan must be thorough and explain how the funding will help grow the business. All applications must include realistic commercial opportunities that can either create new markets or exploit significant growth in an existing market. Strong applications will include a realistic cashflow forecast for managing your business finance. For any grant funded project to be considered eligible, the project must be seen as a disruptive innovative development capable of commercial success. 

Once submitted, each grant application will undergo an extensive evaluation application to determine its eligibility under the scheme.  

How we can help

Applying for R&D grant funding can be a minefield. It’s not always obvious what projects are eligible and which costs are applicable. If you choose Buzzacott to assist with your grant application process, we can: 

• Scope projects to help identify gaps in available knowledge. 
• Review your R&D project to determine the viability of grant funding.
• Work with you to research, prepare, and write the R&D grant application with the highest chance of success.
• Review and support the submission of the grant application.
• Monitor the management of grant submissions. 

Our team of specialists are aware of the grant application complexities and will increase your chance of a successful application. From coaching, advising, and assessing your application, we can provide the specialist support your need.

Get in touch

If you would like to speak to one of our R&D experts to find out more about how we can help, please get in touch via the form below.