Small and medium-sized businesses in the UK have access to dedicated grant programmes at national and regional level. This guide explains which programmes favour SMEs and how to find the ones relevant to your sector and location.
The UK government defines a small business as having fewer than 50 employees and a turnover under €10 million; a medium business has under 250 employees and turnover under €50 million. Many UK grant programmes specifically target businesses within these thresholds - and some offer higher funding percentages to SMEs than to larger companies. Knowing your size classification is step one before applying to almost anything.
Innovate UK SMART grants fund SMEs at up to 70% of eligible project costs; large companies receive only 50%. Micro-businesses (under 10 employees) can receive up to 80%. This isn't bureaucratic detail - it's the difference between needing to find £50,000 of match funding versus £150,000 on the same-sized project. For most smaller businesses, SME classification is an advantage, not a constraint.
The most accessible national programmes for small businesses are Innovate UK's open competitions - specifically SMART grants for innovative projects, and Knowledge Transfer Partnerships (KTPs) for businesses wanting to work with university expertise. Both are explicitly designed to be accessible to small businesses and don't require large teams or established revenue. Beyond Innovate UK, the British Business Bank runs several programmes relevant to SMEs: the Start Up Loans scheme (low-interest loans, not grants, but worth knowing) and the Recovery Loan Scheme for post-pandemic investment.
Regional grants through Growth Hubs, local enterprise partnerships, and combined authorities are often the most practical first port of call for small businesses. Competition is lower, the application process is lighter, and the amounts - typically £5,000 to £50,000 - are better matched to the scale of most SME projects. The GOV.UK business support finder at business.gov.uk is the official route to finding what's available in your area.
Several sectors have SME-specific grant streams. The Made Smarter programme funds digital technology adoption for SMEs in manufacturing. The SBRI Healthcare programme connects NHS with SME innovators. The Defence and Security Accelerator (DASA) runs quick access competitions specifically designed for smaller, agile businesses. If your business operates in a priority sector, these targeted programmes can be easier to access than open competitions.
Grantscom searches thousands of live grants and tenders every day and scores them against your business profile.
Start free →