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

What to take away

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 the sectors 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. The Subsidy Control Act 2022 sets the rules for how public financial assistance can be given.

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.

Named Scottish Enterprise programmes include SMART: Scotland, which offers up to £100,000 for feasibility studies and up to £600,000 for research and development projects. Regional Selective Assistance (RSA) supports capital investment and job creation.

RSA awards are negotiated case by case and typically run from tens of thousands of pounds into the millions, depending on the capital spend and the number of jobs created. Some programmes are delivered with partners such as Scottish Development International or local councils.

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.

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.

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. Current named schemes include the Barriers to Start-up Grant and the Innovation Voucher.

The Barriers to Start-up Grant typically awards a few thousand pounds, set by the business plan and eligible costs. Innovation Voucher awards are capped by the programme guidance and depend on the project. 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. An SME has fewer than 250 employees and either annual turnover under €50 million or a balance sheet total under €43 million. That is the UK's grant definition.

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.

Size tests are broadly similar but not identical. Both agencies use the same SME thresholds: fewer than 250 employees and either annual turnover under €50 million or a balance sheet total under €43 million.

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.

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.

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.

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 practical difference is how you enter the system. Scottish Enterprise is account-led and selective, while Business Wales is checker-led and programme-specific. Beyond that, the eligibility tests and evidence requirements are broadly similar.

Common questions