Taking a great product to manufacture takes time and money, however funding opportunities exist to help with this costly process. In Part 1 we looked at available funding for research and development, this week we take it one step further and look at ways of supporting and funding fledgling businesses.
Below are a number of different funding opportunities which, if you fit the criteria, you can use to help you on your way to getting your product manufactured whether you are an individual or a business.
The Patent Box is a Corporation Tax relief which gives a reduced rate of tax (10%) on income deriving from the commercial exploitation of patents and other innovations. It applies to innovative high tech companies and to companies that use patents in their trade, such as manufacturing companies.
South West Manufacturing Advisory Service design and deliver programmes of support that enable ambitious businesses to increase their productivity, improve operational efficiency, develop skills and reach their growth potential.
SWMAS work directly with manufacturers, on the shop floor delivering improvement programmes and at board level developing and refining strategy. They provide consultancy services, run public funded programmes, deal with complex funding arrangements and support businesses to leverage UK and European funding for growth and innovation.
The Regional Growth Fund (RGF) has supported eligible projects and programmes raising private sector investment to create economic growth and lasting employment. Investing £2.7 billion to help local businesses in England to grow, RGF is expected to create or safeguard around 270,000 jobs by the mid-2020s.
Crowdfunding is probably the best known source of finance, it has its origins in the concept of crowdsourcing – the broader concept of an individual reaching a goal by receiving small contributions from many parties in order to finance a particular project or venture.
This type of initiative usually occurs on Internet platforms and involves a variety of participants. They include the people or organisations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. It is then supported by an organisation (the ‘platform’) which brings together the project initiator and the crowd. Below are a few worth looking at:
The Business Support Finder is a government backed support and finance search engine for businesses. It is a really useful site for identifying any other possible sources of funding for your business.
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies raise equity finance by offering tax reliefs to individual investors who purchase new shares in those companies. It complements the existing Enterprise Investment Scheme (EIS) which offers tax reliefs to investors in higher-risk small companies.
Syndicate Room is an organisation that enables members of the public to invest in the same projects as professional “lead” investors, while providing everyone with the same economic terms and legal protections. Lead investors will conduct their own valuations and due diligence before investing, and members of the public will benefit from the reassurance that their money is being invested in a promising project.
Entrepreneurs’ Relief is available to individuals and some trustees of settlements, it reduces the amount of Capital Gains Tax on a disposal of qualifying business assets as long as you’ve met the qualifying conditions throughout a one-year qualifying period either up to the date of disposal or the date the business ceased.
If you have an idea you want to take to market, we will assist you through your journey. We work closely with all of our clients to ensure they have all the support they need throughout the product development process.
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