Rural Business and Community Enterprise Fund

1.Background to the rural business and community enterprise grants 

This Fund is designed to support rural businesses that are of wider benefit to the rural economy, and community or charitable organisations that provide a commercial service. It offers small grants to promote economic prosperity and increase the sustainability of Test Valley’s rural communities.

Many rural enterprises including pubs and shops provide more than just commercial services.  They also act as places where communities can meet, and they are part of the fabric of village life. Other enterprises, offer traditional rural products and services to their customers. However, it is increasingly difficult for many organisations to survive due to rising costs and competition with larger businesses and online services. In addition, community organisations increasingly need to diversify to generate income, e.g. a community hall might launch a business hub for those working from home. This Fund is designed to support businesses and community organisations that provide rural products and services to their customers and communities on a commercial basis

The Fund will be flexible, encouraging new proposals and ideas from businesses and community organisations that will improve the local economy and support their own long-term sustainability. The grants are intended to enable rural enterprises to add value to their offer whether that be through diversifying revenue streams, increasing productivity or increasing capacity and resilience.

Grants of £1,000-£10,000 are available. This Fund can be used to meet up to 80% of the cost of your project. The applicant organisation is required to source a minimum of 20% of their project’s costs. The fund available is £100,000 for 2025/26 and £100,000 for 2026/27.  Organisations can apply for grants towards capital projects and/or one-off revenue costs such as training. The grants cannot fund on-going running costs such as for staff wages.

Examples of applications we may fund:

  • A commercial or community rural pub or shop seeking to refurbish or purchase equipment
  • A community organisation running, or looking to start, a commercial venture, e.g. a business hub, pantry or childcare facility
  • A commercial business creating something specifically for the local community (such as using some of their building to a community space).
  • Social clubs in rural areas seeking to refurbish, buy equipment or train staff
  • A commercial sports club in a rural area
  • Farms looking to diversify 
  • Traditional rural businesses such as foresters, farriers, or thatchers seeking to invest or provide training.