The grant landscape has come on leaps and bounds in the last decade. Not only has the UK broadened its horizon to include societal innovation, but it has strengthened its regional focus to help communities and industries across the country. While it is no secret that grants are hard to come by, a recent transition to a digital grant management system is just one of the ways the process has been streamlined, with detailed requirements and guidance for applicants. Helen Steel from Steamlion Consulting, a Berkshire-based firm specialising in SME funding and growth strategies, has watched the grant space change since she founded the business in 2015. Since then, Helen has helped over 700 businesses secure over £14million in funding. With this decade’s worth of knowledge, Helen now looks back at the ways the sector has changed for the better.
The UK’s Evolution in Innovation Funding
Just 10 years ago in 2014, grant funding looked very different. It was primarily focused on direct technology development at a time when the internet was becoming central to the way we lived our lives. According to DataPortal 3-billion people were using the internet in 2014, with global users increasing by more than 5% year-on-year. Mobile phone developments and wearable devices can also be linked to this surge. While electric cars and 3D printing were two more of the many technology developments that industry leaders were focused on.
Grant funding and support were largely centralised through traditional research councils, making it difficult for small businesses and entrepreneurs to get their hands on it. Limited integration between academic and commercial innovation furthered this issue and academic channels would often communicate amongst themselves on prospective national and international collaborations.
Fast forward to 2024 and the UK has become a global leader in this space. The government’s central body, Innovate UK, has expanded its role now to encompass broader societal innovation, alongside technological advancement. Meanwhile, The Catapult Network has created dynamic connections between businesses, research institutions, and innovators.
The regional focus has also strengthened over time, with dedicated support for local innovation clusters. Add to this a greater emphasis on sustainable and inclusion innovation, and you can see how up-and-coming businesses have been able to achieve funding and thrive under the current circumstances.
On a broader scale, the UK business network has seen enhanced international partnerships and knowledge exchange through Innovate UK’s global programs.
Grants are Easier to Apply for Now
The widespread adoption of digital grant management systems has revolutionised the application process. Not only is the platform accessible to all but the process is made simpler with a streamlined approach.
Major funders like the National Lottery Community Fund and local authorities have also implemented user-friendly online portals, reducing paperwork and making applications more accessible to Charities, CICs and SMEs.
Meanwhile, the administrative burden for applicants has been reduced through the standardisation of post-grant award reporting requirements.
How Business Funding Has Changed
Over the last decade, there has been a huge shift from purely technology-focused grants to funding that prioritises the broader societal impact, with a focus on sustainable innovation. This change of focus supports a more diverse range of disruptive solutions, including:
- Circular economy initiatives combining traditional industries with innovative practices
- Social enterprises leveraging technology for community benefit
- Local manufacturing revitalisation using sustainable practices
- Heritage sector modernisation that preserves cultural value while adopting new business models
- Business growth funding (matched grant) in certain counties of the UK
With recent advancements in AI, a number of grants are also now asking for AI solutions to enhance productivity when relevant to the industry. For example, EduTech is bringing learning to life through learning powered by technology and AI.
Increased Equality, Diversity and Inclusion
Grant-makers have actively worked to address historical funding inequalities, with many establishing dedicated funding streams for underrepresented groups and communities. Examples of these include the Woman in Innovation Awards and Black Female Awards.
Grant applicants are also often encouraged to consider equality, diversity and inclusion in their applications. They may be asked to consider how they would describe their approach to EDI, such as; in working and learning environments, in practices and actions.
Enhanced Transparency and Accountability
Funders increasingly publish detailed funding criteria and success rates, helping organisations make more informed decisions about applications and where to concentrate efforts. With any grant application, a valuable amount of time and resources are put into the brainstorming, writing and application process. For some grants, for example SMART grants, the success rate is less than 5%.
Collaborative Funding Approaches
The emergence of funding partnerships and consortia has reduced duplication of effort and created more substantial funding pools for addressing complex social issues. Improved coordination between public and private sector funders has led to more strategic deployment of resources and better coverage of social needs.
The grant landscape has gone through a vast amount of change in the last decade, with many global and national issues having a role to play in this, the pandemic and Brexit just to name a few. As we get ready to go into another year, the sector is braced for more change to come as we as a nation shift our focus onto renewable energy and becoming a ‘greener’ country.