The Shetland Business Start-Up Grant is funded jointly by Shetland Islands Council’s Economic Development Service and Highlands and Islands Enterprise. The grant is administered by the Business Gateway Shetland team and is open to applications from new small businesses located in Shetland.

The objectives of the fund are to:

• Ensure early engagement of new business starts with Business Gateway, who will support the production of business plans, cash flow forecasts and provide early-stage support to help improve viability, and increase ongoing sustainability and growth.
• Provide new business start-ups with funds to support capital investment, training costs and marketing and promotion.
• Encourage and support young entrepreneurs. Young people under 30 will be eligible for additional grants and mentoring support.
• Encourage and support new businesses which will contribute to Shetland’s transition to net zero.

Grant levels

A grant of £500-£2,000 can be awarded to successful applicants. Applicants will be able to receive 100% of eligible costs up to the maximum grant amount.

Young Persons Grant supplement

An additional grant of £1,000 can be awarded to successful applicants who are age 30 or younger at the date of application. Where the applicant is not the sole owner of the business, they must have at least a 50% share and have an active day-to-day role in the business.

Net Zero Grant supplement

An additional grant of £1,000 can be awarded to successful applicants whose core business is specific to renewable energy. This could include projects or plans which relate to energy efficiency, green heating systems, zero waste, circular economy principles or can demonstrate that the business will directly contribute to the transition to net zero. This is a discretionary supplement and applications will be assessed on their merit by Business Gateway and Highlands and Islands Enterprise.

Eligibility

• Individuals (pre-start); sole trader; partnerships, limited companies or social enterprises
• Businesses established up to 12 months prior to the application date will be eligible to apply for assistance
• Most sectors can apply (Enclusions: Businesses/individuals engaged in the sex industry, politics, gambling, religious activities, nude or semi-nude modelling, pyramid selling, or any business that may bring the Council/HIE into disrepute. In addition, self-catering/B&B businesses and retail will be deemed ineligible however there may be exceptions in remote and rural areas or for certain online businesses.)
• Located within the Shetland area

Successful applicants must be able to demonstrate that they have aspirations to establish a new full-time business in Shetland which is commercially viable.

Applications for assistance must be accompanied by a robust business plan and a 2-year cash flow forecast. Free adviser support is available from Business Gateway to assist with this.

Applicants will be expected to demonstrate that at least two of the following primary outcomes can realistically be achieved:

• Creation of a new commercial or social business
• Creation of new jobs (including owner)
• Development of a new, innovative or improved product or service
• Development of a new market
• Development of export or import opportunities

Application

In the first instance, applicants should contact Business Gateway Shetland to discuss the project and check eligibility. An online application form will be issued if the project is eligible. More information about the application process is available here.