Micro firms struggling to access proof of concept financial support
Keeping up to date with the complex variety of available funding sources is a significant problem for those UK micro business owners looking for financial support to prove that new products work, according to a new report from Innovate UK.
The study which was carried out by IP pragmatics on behalf of the government body found that the owners of Britain’s smallest firms predominantly have negative or neutral attitudes to support for this sort of innovation, in contrast to the positive opinion of the landscape held by the managers of large companies.
Understanding what funding is available and how to apply for it is seen as the biggest impediment to funding proof of concept projects, with owners of the youngest firms also struggling with matched funding requirements. The majority of micro firm owners spend less than 10, 000 on proof of concept projects.
The research also revealed that micro firm owners face lower success rates when applying for such funding than those in charge of larger companies and many find fewer than one in every ten applications they make are successful.
Almost half of those micro business bosses surveyed strongly disagreed with the statement that accessing proof of concept funding is not a problem. Those small firm owners not working in partnership with universities struggle the most when it comes to proving new ideas.
The report’s authors argued that focusing government funding for proof of concept in fewer longer term funding sources would significantly reduce the struggles experienced by small companies.
They also recommended that small firm owners look for opportunities for joint projects, in order to harness the expertise of people working for businesses that have previously been successful at receiving funding.
Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.
Having received early grant support from the Welsh government's Digital Development Fund Nudjed then secured further rounds of investment totalling more than 275, 000. To find out more, Business Advice quizzed its founder on securing financial support in the form of grant finance and seed funding in order to accelerate the growth of a tech startup. more»
In our increasingly global marketplace, companies of all sizes need to remain at the cutting-edge of technology and use creative energies to stay competitive, now more than ever. A thinking outside the box? mentality is something that should be embraced across all sectors in order to allow small companies in particular to compete on a level playing field with larger global players. more»
When serial entrepreneur, investor and scientist Hermann Hauser talks, the government sits up and listens. In a 2010 report into technology and innovation in the UK, he called for the UK to establish a network of technology and innovation centres; months later the coalition government had put his plans into place and asked him to evaluate the success of the Catapult centres created. more»