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The Grant Funding Report 2016: Discover the characteristics of a successful grant applicant

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13th Jul 2016
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Tom Kennard, director of specialist grant funding firm Granted Consultancy Ltd, examines the results of their latest research and discovers the characteristics of a successful application.

The Grant Report 2016 seeks to define the characteristics of the businesses that are most likely to succeed in attaining grant funding. This report is based on data from economic development funding and research and development funding, and analyses the correlation between factors including company size, sector and location, between each of the rounds and the amounts awarded.

When we embarked on our endeavour to break down the statistics of grant funding applications, we were unsure of what results to expect. Despite working with grant funding on a daily basis, it can be difficult to see past the very specific eligibility requirements for each call, to see the bigger picture and where funds really end up being allocated.

We were looking forward to getting down to the nitty gritty – the facts and statistics of the true likelihood of succeeding with grant funding. Eligibility criteria are one thing – but what sectors, company sizes and UK areas end up being allocated the lion’s share of grant funding?

Upon analysing the report, there were three findings in particular interested us:

1) Business growth grants seem to be allocated primarily to business with a high average age and turnover.

pie chartIt’s important to note here that the data examined in the Grant Report was primarily from large open calls, which are mostly applied to by large and established companies. Looking forward and in following versions of the Grant Report, we’d like to examine smaller programmes which attract more SMEs. However, even without a comparison it’s an important finding to note that funders favour larger business, and the most likely reason for this is that these businesses offer more security for the allocated funding.

As our knowledge has developed we’ve come to see that rather than propping businesses up, perhaps it does make more sense that funders wish to invest in already thriving businesses – after all, it would be a disastrous shame for the funding to go to waste. An interesting comparison for future research endeavours would be to see if this risk or risk-avoidance by funders is well-founded, by comparing the number of jobs created by these larger, older companies, with the number created by SME applicants. Watch this space.

2) The second statistic which took us by surprise was that almost 40% of R&D funding was allocated to business in London and the South East region.

listMostly we have seen that funding is allocated to less wealthy regions of the UK, which have assisted economies, such as Assisted Areas. Clearly London does not fall within this category. It’s easy to see why this makes sense for R&D funding, however. London is a melting pot of cultures, ideas and innovation. In reality the innovation scene in London is unmatched anywhere else in the UK. Additionally the level of risk capital is much higher, and it follows that more affluent people, equals more risks and innovative business endeavours.

3) Despite the emphasis so far that investors favour thriving and innovative businesses, broadly the picture was that the average range of ‘success profiles’ was very broad.

The average turnover and age remains high, however there were applicants who attained funding but fell considerably lower on the scale - so start-ups should certainly not lose hope. It seems to be that whilst the UK Government seeks to invest and support large, successful businesses they still take a broad and measured approach when allocating funding. If you’re ambitious, there will always be opportunity.

The Grant Report 2016 is an extensive and detail document, but seeks to make the statistics accessible and clear. Read the Grant Report 2016 completely free here.

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