The Top 3 Ways to Utilise Government Support for Tech Start-ups

---

When bringing an idea to life, the various aspects of business and product development can seem daunting. One of the ways you can ease both the mental and financial pressures of startup management is through the array of government support available

---

Ranging from start-up loans to innovation grant funding, in this article, we will be covering the 3 top ways you can utilise existing government support to give yourself a head start in your tech entrepreneurship journey.

1. Start-Up Loans

When building a business from scratch, financial support is vital – research by CB Insights found that 38% of startup failures were due to businesses running out of money or failing to raise enough capital [1]. A government-backed start-up loan is one of the ways you can secure your liquidity and allow you to keep your business running day-to-day until it becomes profitable.

 

UK Founders and even those in the initial ideas phase are eligible to apply for a loan ranging from £500 to £25,000, payable over a 1–5-year period at 6% interest. It is to be noted that you will be required to pass a credit check, live in the UK, be 18 and over and have a business or business idea that is younger than 36 months.

 

All applicants will receive free support and guidance in writing a business plan, whilst successful applicants will receive 12 months of business mentorship alongside the loan, helping you to manage your growth during the often-challenging early stage.

 

2. Grant Funding

 

Continuing the theme of financial support, grant funding is another great option for tech start-ups to consider if you can demonstrate that your business has the potential to benefit the wider economy. The UK Government provides a range of grants to fund innovation depending on business area and size. The Innovate UK Smart Grant rewards successful businesses with a share of £25 Million to pursue innovation and is typically aimed at SME’s with demonstrable commercial benefits. Similarly, the European Commission’s EIC Accelerator Grant is open to UK SME’s and provides successful businesses with a share of £800 Million to pursue research & development. It is worth noting that these grants are highly competitive and as such seeking expert advice and making sure you have adequate time allotted to tackle the applications is greatly recommended.

There are also a variety of more accessible grants available to businesses in Worcestershire. The Enterprising Worcestershire Start-Up grant is available to SME's that have been trading for less than 36 months, rewarding successful applicants with between £1000 to £5000. Furthermore, the Innovation Worcestershire Grant is available to businesses producing a new innovative or improved product that has not been introduced on the market recently. Funding varies depending on district council area, however typically there is between £2,000 and £15,000 available for eligible businesses.

 

3. Business Support Programmes & Upskilling

 

Efficiency and organisation are vital in making sure your business reaches its potential and dealing with the many challenges that startups face. Business support programmes & upskilling initiatives are therefore key in giving you and your team the knowledge required to navigate all aspects of business management.

Business support programmes such as accelerators, boot camps, and incubators are a great way to utilise government support. The BetaDen Accelerate programme offers 9 months of mentoring in various aspects of business management both in group settings and 1 on 1 with the addition of a £2000 marketing fund and access to a £10,000 Proof of Concept Grant. For businesses at an earlier stage, the BetaDen Incubate programme offers a condensed 8-week option focused on mentoring businesses through the embryonic stage of launching a start-up with dedicated co-working space to easily allow for collaboration.

Other options for business support in Worcestershire include the Enterprising Worcestershire Start-It Masterclass which provides mentoring on launching a business over two days whilst the Worcestershire Growth Hub can provide dedicated 1 on 1 support in identifying your specific needs and connecting you with experts or programmes that can help.

In terms of skills training, the recently announced Skills England, once fully established will seek to provide upskilling support to many businesses that face skill shortages in their employee base, in the meantime however are there a variety of upskilling initiatives available for startups to access.

 

In a rapidly changing technological landscape, an understanding of AI will be vital for the tech startups of the future. The AI Upskilling Fund pilot allows businesses to apply for up to £10,000 in matched funding to pay for AI-related skills training for their employee base. Locally and more generally, The Worcestershire Skillsboost programme allows businesses to claim 50% back on £12,000 worth of training in various business-related skills and is available to businesses of any size until March 2025. Additionally, for local businesses, the Skills Bootcamps programme offers flexible training for anybody 19 and over and works with local employers to address specific skills gap - training staff for just 10% of the total cost of training for SME's and 30% for large businesses.

Whilst many of the options discussed above are accessible only to Worcestershire-based businesses, it is worth checking what business support is on offer in your area as similar grants and opportunities may be available.