Scottish Enterprise and Business Wales grants, what differs for small firms

What to take away

• Business grants in Scotland and Wales are delivered by two different agencies: Scottish Enterprise and Business Wales, with separate eligibility tests and evidence requirements.
• Scottish Enterprise assigns an account manager to growth firms, while Business Wales uses an online eligibility checker and grant application process.
• Location matters: Edinburgh and Glasgow firms fall under Scottish Enterprise, while Cardiff firms fall under Business Wales.
• Both agencies must follow UK subsidy control rules, which cap the amount of public support a single firm can receive.
• Small firms should prepare accounts, a business plan and quotes before applying, as both agencies ask for similar evidence.

Two devolved agencies, two approaches to supporting small firms

Devolved support in Scotland and Wales is not a mirror image. Scottish Enterprise and Business Wales each design their own grant offers, set their own eligibility tests and ask for different evidence. For a small firm in Edinburgh, Glasgow or Cardiff, the first decision is which agency you fall under, not which grant looks biggest.

Scotland and Wales together account for a significant share of the UK business population. The Office for National Statistics publishes regional economic data that shows how output and employment differ across the devolved nations, which shapes what each agency prioritises. You can see the underlying figures in the regional accounts.

Business population data by region and size is also published by government. It shows that most firms in both nations are small, which is why both agencies target their support at that group. The business population estimates break this down by region and size band.

Both agencies operate under the UK subsidy control regime. That matters because a grant from Scottish Enterprise or Business Wales is public financial assistance, and the Subsidy Control Act 2022 sets the rules for how such support can be given. If you have already received public funding, declare it early.

GOV.UK remains the central hub for business support signposting. It routes firms to grants and other help across the UK, including devolved programmes. Start at the business and self-employed hub if you are unsure which agency covers you.

Scottish Enterprise: account management and grant types

Scottish Enterprise is Scotland's national economic development agency. It supports firms with growth potential, typically those with a clear plan to increase turnover, exports or jobs. The agency offers account management to a subset of companies, meaning a named contact who coordinates support across different programmes.

Account management is not automatic. Scottish Enterprise tends to assign an account manager to firms it considers strategic or high-growth. For smaller firms without that status, support is more likely to come through open grant calls or specialist programmes.

Grant types from Scottish Enterprise include research and development support, capital investment grants, and funding for internationalisation. Some programmes are delivered with partners such as Scottish Development International or local councils. The exact mix changes over time, so check current offers before you plan.

Eligibility tests for Scottish Enterprise grants usually cover company size, sector, location and growth potential. The agency will look at whether your project would go ahead without public funding, known as the counterfactual test. It will also check that the grant does not breach subsidy control limits.

For firms in Edinburgh and Glasgow, Scottish Enterprise is the main devolved agency. Both cities have a high concentration of small firms in sectors such as technology, creative industries and professional services. If you are in either city and seeking growth capital, account management is the route to explore first.

Before you apply, understand what an advert must prove if you are responding to a grant call. The rules on what an advert must prove apply to how opportunities are described and what applicants can rely on.

Business Wales: Welsh Government grants and eligibility tests

The Welsh Government's business support service is called Business Wales. It provides advice, signposting and access to grants for firms in Wales. Unlike Scottish Enterprise, it does not run a universal account management model for small firms. Instead, it uses an online eligibility checker and a central application process.

Business Wales grants are typically funded by the Welsh Government, sometimes with UK Government or EU successor funding. They cover areas such as start-up support, innovation, export development and capital investment. Some grants are delivered through local authorities or partner organisations.

Eligibility tests for Business Wales grants start with location. Your business must be based in Wales, and some programmes target specific regions or sectors. Cardiff firms are eligible for most national programmes, but some local authority schemes have narrower boundaries.

Size is another test. Many Business Wales grants are aimed at small and medium-sized enterprises, with employee and turnover thresholds. You will need to confirm you are an SME under the UK definition, which uses staff headcount and financial ceilings.

Sector rules vary. Some grants exclude retail, hospitality or primary agriculture, while others prioritise manufacturing, digital or low-carbon projects. Always read the specific programme guidance rather than assuming a general business grant will fit.

Business Wales also runs the geography, applicant, cost and timing checks that apply to most grant schemes. These four tests determine whether your project is eligible before you spend time on a full application.

Eligibility tests compared: size, sector and location

The table below compares the main eligibility tests for Scottish Enterprise and Business Wales grants. It is a starting point, not a substitute for reading the current programme rules.

Test	Scottish Enterprise	Business Wales
Location	Scotland, with Edinburgh and Glasgow covered	Wales, with Cardiff covered
Size	Small to medium, with growth potential	SME under UK definition
Sector	Priority sectors and high-growth areas	Varies by programme, some exclusions
Account management	Available to selected growth firms	Not universal, advice-led model
Application route	Account manager or open calls	Online checker and central application
Subsidy control	UK Subsidy Control Act 2022 applies	UK Subsidy Control Act 2022 applies

Size tests are broadly similar but not identical. Scottish Enterprise may prioritise firms with job creation or export potential, while Business Wales often uses standard SME thresholds. If you are near a threshold, check whether part-time staff or contractors count.

Sector tests differ more. Scottish Enterprise has historically favoured technology, life sciences, energy and advanced manufacturing. Business Wales has a wider remit but still excludes some sectors from specific grants.

Location is the clearest dividing line. A firm in Edinburgh or Glasgow cannot apply to Business Wales, and a Cardiff firm cannot apply to Scottish Enterprise. Cross-border firms must apply where the project and jobs will be based.

Subsidy control applies to both. If you have received other public grants, you must disclose them. The cumulative total may affect what you can be offered.

Application evidence firms in Edinburgh, Glasgow and Cardiff must supply

Both agencies ask for similar core evidence, though the depth varies with grant size. Prepare these documents before you apply.

• Company accounts for the last two to three years, or management accounts for younger firms
• A business plan or project plan showing what the grant will fund
• Quotes or cost estimates for equipment, services or works
• Confirmation of company registration and VAT status if applicable
• Details of any other public funding received or applied for
• Evidence of the need for the grant, such as a funding gap or counterfactual
• Job creation or turnover forecasts if the grant is linked to growth

For Edinburgh and Glasgow firms, Scottish Enterprise may also ask for an account management plan or a growth strategy. If you are working with an adviser, the choosing the right adviser checklist helps you avoid paying for work you can do yourself.

Cardiff firms applying through Business Wales should expect to complete an online eligibility check before submitting documents. The check asks about location, size, sector and previous funding. Failing it does not always mean no support, but it determines which programmes are open to you.

Both agencies may ask for a cash flow forecast. This shows you can fund the project while waiting for grant payment, which is often made in arrears. If you cannot cover the upfront cost, the grant may not be workable.

Subsidy control declarations are now standard. You will need to list any public grants received in the relevant period. Keep records of previous awards, including from local councils or UK-wide programmes.

If you use external help to prepare the application, compare advisers, accountants and contractors before you commit. Fees vary, and some grant programmes cap eligible costs.

What differs for small firms choosing between the two

The main difference is the delivery model. Scottish Enterprise leans on account management for growth firms, which can mean a more tailored but selective route. Business Wales leans on a central eligibility check and programme-specific applications, which can be more accessible but less personalised.

Another difference is the range of grants. Scottish Enterprise often ties grants to innovation, exports and capital investment. Business Wales covers a broader set of small business needs, including start-up and advice services.

Eligibility tests also differ in emphasis. Scottish Enterprise may weigh growth potential and additionality more heavily. Business Wales may weigh location and sector fit within specific programmes.

For a small firm, the practical choice is simple: you apply where you are based. Edinburgh and Glasgow firms use Scottish Enterprise. Cardiff firms use Business Wales. There is no competitive choice between the two for the same project.

What you can choose is how much preparation you do. Firms that map their project against the eligibility tests and gather evidence early tend to have a smoother application. Those that apply speculatively often waste time on programmes they cannot access.

Both agencies operate within UK subsidy control rules, so plan for disclosure. If you have received grants before, check the cumulative total before applying for more.

Common questions

Can a Cardiff firm apply to Scottish Enterprise? No. Scottish Enterprise supports businesses based in Scotland. A Cardiff firm should apply through Business Wales or a UK-wide programme instead.

Does Business Wales offer account management? Not as a universal service. Business Wales provides advice and signposting, but a named account manager is not standard for all small firms.

What is the main eligibility test for both agencies? Location is the first test. You must be based in Scotland for Scottish Enterprise or Wales for Business Wales. Size and sector tests apply after that.

Do I need to declare previous grants? Yes. Under subsidy control rules, you must disclose other public funding. This can affect the amount you are offered.

How long does an application take? Timescales vary by programme and grant size. Simple grants may take weeks, while larger capital or innovation grants can take several months.

Can I use an adviser for my application? Yes, but check fees and whether the cost is eligible. Some programmes cap how much you can claim for external help.