Q&A: Alternative funding ideas
Article Date: Aug 17 2005Q: I have an idea for a new technology, but lack the funds to develop it and have been turned down by banks and private investors. Do you have any alternative funding ideas?
Answered by Phil Verity, Mazars
Yes, have you thought about applying for a Research & Development grant. These were introduced by the DTI to replace the old SMART Awards scheme on 1 June 2003 and are designed to help individuals and small or medium-sized enterprises improve competitiveness by developing new products or processes.
There are awards, which allow you to carry out a feasibility study (maximum grant 60% of costs up to £75,000) or for a development project (maximum grant 35% of costs up to approx. £200,000). In addition exceptional development project grants (maximum grant 35% of costs up to £500,000) and micro project awards (50% of costs up to £20,000) are also available.
To be eligible, you have to meet a number of conditions including a limit on numbers of employees, and your turnover. Also your business must be independent (less than 25% of voting rights held by another enterprise, for example).
To find out more about Research & Development grants contact your local Business Link team.
Phil Verity is a partner at Mazars, the international accounting and business advisory firm, and Head of the Mid Corporate Market business line. Phil works with a wide variety of entrepreneurial and owner-managed businesses, helping them tackle the challenges of growth and development. He frequently advises companies on issues such as business strategy, financial management and control, mergers and acquisitions, succession and overseas expansion.
Very sound advice.
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