In an era where digital innovation drives success, businesses that embrace technology gain a competitive advantage. Whether it’s improving efficiency, automating operations, or enhancing customer experiences, digital transformation is key to business growth.

However, investing in new technologies can be costly, making it difficult for small and medium-sized enterprises (SMEs) to keep up. This is where business grants come into play, providing financial support that helps companies upgrade their systems, adopt digital tools, and scale operations effectively.

For businesses in West Yorkshire, Digital Enterprise is a leading funding provider, offering grants to support digital transformation initiatives. These grants can help businesses implement cutting-edge software, hardware, and automation solutions, accelerating growth and enhancing productivity.

In this guide, we’ll explore:

  • Why digital investment is essential for modern businesses
  • The different Digital Enterprise grants available
  • Who can apply and how to access funding
  • Success stories from local businesses that have benefited

Why Digital Investment Matters for Business Growth

Digital technology is now at the core of business success, driving efficiency, productivity, and competitiveness. Whether through automation, cloud computing, data analytics, or e-commerce, businesses that invest in digital tools can streamline operations, reduce costs, and improve customer engagement.

However, many small and medium-sized enterprises (SMEs) struggle to finance digital transformation, which is why grants such as those provided by Digital Enterprise play a crucial role. These funding opportunities enable businesses to modernise their infrastructure, adopt innovative technologies, and future-proof their operations.

This section explores why digital investment is essential for business growth, supported by real-world examples and verified research sources.

The Role of Digital Tools in Modern Business

Businesses that integrate digital solutions can significantly improve their performance across various areas, including operational efficiency, customer service, and financial management. Key digital investments include:

  • Automation and artificial intelligence (AI) – Reduces manual tasks, increases accuracy, and improves decision-making.
  • Cloud computing – Allows for flexible working, real-time collaboration, and improved data security.
  • Cybersecurity solutions – Protects businesses from data breaches, cyber threats, and compliance risks.
  • Data analytics and business intelligence – Enables businesses to make informed decisions based on real-time insights.

A report published by the UK government as part of the Business Productivity Review highlights that adopting proven digital technologies -such as cloud computing, customer relationship management (CRM) systems, and data analytics -can significantly boost business performance and productivity, with digitally enabled firms often achieving faster growth and higher profitability than their non-digital counterparts.

Additionally, the UK’s Digital Strategy notes that small and medium-sized enterprises (SMEs) with a strong digital presence tend to grow more than twice as fast as those with minimal or no digital engagement.

These findings highlight the clear advantages of digital transformation, proving that businesses investing in technology experience faster growth, increased revenue, and improved efficiency.

The Competitive Advantage of Digital Adoption

Businesses that fail to invest in digital technology risk falling behind competitors that use automation, AI, and cloud-based solutions to streamline operations and improve customer experiences. Digital adoption provides several competitive advantages:

  • Increased efficiency – Automation and data integration reduce the time spent on manual tasks, freeing up resources for growth.
  • Stronger customer engagement – CRM and e-commerce solutions allow businesses to reach new customers and personalise interactions.
  • Better decision-making – Access to real-time analytics enables businesses to adapt to market trends and customer needs.
  • Operational resilience – Cloud computing and cybersecurity solutions help businesses protect their data and enable remote working.

Overview of Digital Enterprise Grants

For businesses in West Yorkshire looking to modernise their operations and enhance efficiency through digital investment, Digital Enterprise grants provide crucial financial support. These grants help businesses overcome the cost barriers associated with adopting new technologies, software, and digital infrastructure.

Eligibility Criteria

To be eligible for funding, businesses must:

  • Have their main operational premise based  in West Yorkshire
  • Minimum of 5 full time equivalent employees
  • Have been trading for a minimum of 3 years
  • Have a minimum annual turnover of >£100,000
  • Predominantly operate in a B2B environment
  • Demonstrate that the project will have a substantial impact on business growth and efficiency.
  • Provide evidence of how the funding will be used to drive job creation, digital transformation, and long-term success.
  • Show financial commitment towards the project, as match funding is required.

The following section outlines the two primary funding options available:

  • The Digital Accelerator Grant – Designed for businesses that need support in implementing digital tools to improve efficiencies.
  • The High Impact Grant – Aimed at companies undertaking large-scale digital transformation projects with a significant impact on growth and productivity.

The Digital Accelerator Grant

The Digital Accelerator Grant is designed to help businesses adopt and integrate digital solutions that improve efficiency, productivity, and competitiveness.

Key Benefits

  • Provides financial support for businesses adopting digital tools, systems, and automation.
  • Helps businesses modernise outdated IT infrastructure and improve operational efficiency.
  • Enables investment in cybersecurity measures, ensuring data protection and compliance.
  • Supports businesses looking to expand their e-commerce and customer service capabilities.

What Can the Digital Accelerator Grant Be Used For?

Businesses can use this funding for a range of digital investments, including:

  • Software and digital systems – Implementing new customer relationship management (CRM) software, data analytics tools, and enterprise resource planning (ERP) systems.
  • Cybersecurity solutions – Enhancing protection against cyber threats with firewall and encryption technology.
  • Website and E-commerce– Improving online presence through website creation and development.

The High Impact Grant

For businesses planning a major digital transformation, the High Impact Grant offers larger funding amounts to support significant technological investments. This grant is ideal for companies looking to implement cutting-edge digital strategies that have a wide-reaching impact on growth, operations, and job creation.

Key Benefits

  • Provides funding for high-value, large-scale digital transformation projects.
  • Supports businesses integrating advanced automation, AI, and smart manufacturing technologies.
  • Helps companies looking to expand digital capabilities to scale their business and increase revenue.
  • Encourages digital adoption that results in job creation and long-term regional economic benefits.

What Can the High Impact Grant Be Used For?

This grant is designed for businesses making a strategic investment in digital technology, such as:

  • Enterprise Resource Planning (ERP) Systems – Implementing integrated software for finance, HR, and supply chain management.
  • AI and Automation – Using data-driven AI solutions to enhance customer service, manufacturing processes, and business intelligence.
  • Smart Manufacturing and Digital Production – Implementing Internet of Things (IoT) technologies and robotics to improve efficiency.
  • Big Data and Cloud Integration – Developing real-time data analytics platforms to support business decisions and scalability.

How Much Funding is Available?

The exact amount of funding available varies depending on the size and scope of the project. However, general funding levels include:

  • Digital Accelerator Grant: For projects costing up to £25,000, the value of the grant will be up to 50% of costs, and capped at £10,000.
  • High Impact Grant: For projects between £25,000 – £100,000, the value of the grant will be up to 50% of costs, and capped at £35,000.

The final amount awarded depends on project viability, business impact, and eligibility criteria.

Both grants offer an exciting opportunity for businesses in West Yorkshire to enhance their digital capabilities and future-proof their operations.

Who Can Apply? Eligibility Breakdown

Businesses in West Yorkshire that are looking to adopt digital technology to improve efficiency, productivity, and scalability can apply for Digital Enterprise grants. However, there are specific eligibility criteria that companies must meet to qualify for funding.

  1. Business Size and Location Requirements

To be eligible for either the Digital Accelerator Grant or the High Impact Grant, businesses must meet the following location and size requirements:

Location: The business must be based in West Yorkshire, including the local authority areas of Leeds, Bradford, Wakefield, Calderdale, and Kirklees.

Business Size: The grants are primarily aimed at small and medium-sized enterprises (SMEs), which means the business must:

  • Have a minimum of 5 FTE employees.
  • Have a minimum annual turnover of >£100,000
  • Have been trading for more than 3 years
  • Operate in a predominantly B2B environment

Legal Structure: The business must be a registered company, partnership,. Certain public sector organisations, charities, and large corporations are not eligible.

  1. Eligible Industry Sectors

Digital Enterprise grants are available to a wide range of industries, below are examples of the different types of businesses and projects we have supported:

  • Manufacturing & Engineering – Businesses investing in automation, AI, and digital production processes.
  • Professional Services – Firms adopting CRM systems, cloud computing, and data analytics.
  • Health & Life Sciences – Businesses integrating telehealth, AI diagnostics, and digital patient management systems.
  • E-Commerce – B2B SMEs expanding online through e-commerce platforms.
  • Construction & Property Services – Companies using digital project management, 3D modelling, and smart technology.

Businesses that are predominantly B2C aren’t eligible for funding.

  1. Other Conditions Applicants Must Meet

In addition to business size, location, and sector focus, companies must also meet specific conditions to be eligible for funding. These include:

Clear Digital Transformation Plan
Applicants must demonstrate how the funding will be used and provide a detailed project information form outlining the impact of digital adoption.

Co-Funding Requirement

  • Grants require businesses to contribute their own funds.
  • Both the Digital Accelerator Grant and High Impact Grant require businesses to cover at least 50% of the total project cost.

Evidence of Business Viability
Businesses must prove they are financially stable and capable of sustaining the digital investment beyond the funding period. This may require:

  • Recent financial statements.
  • Projections showing how the digital investment will improve business performance.

Compliance with State Aid Rules
All grants are subject to UK Subsidy Control Rules (previously EU State Aid rules), which means there are limits on how much public funding a business can receive.

Next Steps: How to Apply for Digital Enterprise Grants

Now that we have covered the eligibility criteria, the next step is understanding the application process.

In the next section, we will provide a step-by-step guide on how to apply for Digital Enterprise grants, covering:

  • Step 1: Registration and Eligibility Checks.
  • Step 2: Preliminary Assessment Call.
  • Step 3: Completing the Project Information Form.
  • Step 4: Investment Appraisal and Funding Agreement.
  • Step 5: Project Implementation.
  • Step 6: Claim Submission.

Step 1: Registration and Eligibility Checks

The first step is to register interest in the grant programme and confirm that your business meets the eligibility criteria.

How to complete this step:

  • Visit the Digital Enterprise website and submit an initial registration.
  • Provide basic details about your business, including:
    • Business size and location (West Yorkshire requirement).
    • Industry sector.
    • Overview  and value of your proposed digital investment project.
  • After submission, Digital Enterprise will review your registration to confirm whether your business is eligible for funding.

Step 2: Preliminary Assessment Call

Once eligibility is confirmed, businesses will be invited to participate in a preliminary assessment call with a Digital Enterprise Advisor.

Purpose of this step:

  • To discuss the specific digital investment the business is planning.
  • To provide guidance on which grant is most suitable and what level of Advisor support may be needed if the project is approved.

Step 3: Completing the Project Information Form

After the preliminary assessment call, businesses that pass the initial review will be required to complete a Project Information Form (PIF).

What the form includes:

  • A detailed breakdown of the digital investment (e.g., software, hardware, cybersecurity solutions, AI integration, etc.).
  • A timeline for project completion.
  • Evidence of business viability and projected impact.

Tips for success:

  • Be as detailed as possible in explaining how the investment will improve efficiency, reduce costs, or increase revenue.
  • Provide realistic cost estimates and demonstrate financial feasibility.

Step 4: Investment Appraisal and Funding Agreement

Once the Project Information Form is reviewed, the Digital Enterprise team will assess the financial viability of the proposed project.

Key factors considered in the investment appraisal:

  • The strategic impact of the digital investment on business operations.
  • The potential for business growth, job creation, or increased efficiency.
  • The feasibility of completing the project within a reasonable timeframe.

If the application is successful, the business will receive a formal Funding Agreement, which outlines:

  • The amount of grant funding approved.
  • The agreed project completion deadlines.

Step 5: Project Implementation

Once the Funding Agreement is in place, businesses can begin implementing their digital investment. Businesses must not make any payments to their supplier, including deposits, before the Funding Agreement has been signed by themselves and Digital Enterprise, as this will be seen as a retrospective claim.

What businesses need to do during this stage:

  • Ensure that all approved digital investments are made in accordance with the Funding Agreement.
  • Keep detailed records of expenditure, including invoices and receipts.
  • Regularly update Digital Enterprise on project progress.

As the Project Completion date approaches, a Digital Advisor will arrange a time and date for a Project Completion call or visit. This will be an opportunity to discuss the success of project implementation and to outline the steps to make a claim.

Step 6: Claim Submission

Once the project has been confirmed as complete by a Digital Advisor, the business will be issued with a Claim Pack. The Claim Pack will contain all the details and information needed to make a claim, this will include:

  1. Provide proof that the approved digital investment has been made.
  2. Submit all relevant invoices and bank statements.
  3. The claim will be processed, and the approved grant amount will be reimbursed.

Success Stories: How Local Businesses Benefited

Businesses across West Yorkshire have successfully leveraged Digital Enterprise grants to modernise operations, improve efficiency, and expand their market reach. These real-world examples showcase how grant funding for digital transformation has delivered tangible business growth.

This section highlights case studies of businesses that have benefited from the Digital Accelerator Grant and the High Impact Grant, demonstrating measurable improvements in productivity, revenue, and customer engagement.

Case Study 1: Xerogrid – Supercharged through digital

  • Industry: Renewable Energy
  • Grant Used: Digital Accelerator Grant
  • Investment: Bespoke Software
  • Impact: Enhanced project delivery, improved team collaboration, and supported international expansion

Challenge: Xerogrid,  a Leeds-based renewable energy business specialising in providing tailored solar powered off-grid solutions for commercial and large industrial projects. Using traditional methods to manage and optimise their renewable energy systems the business recognised the need for digital innovation to fuel business growth.

Solution: Recognising the need for innovation, Xerogrid turned to Digital Enterprise for support and grant funding.

They enlisted the help of Leeds-based Hark and their leading energy management and industrial IoT software to bring the complex connectivity and control requirements to life. This advanced software takes inputs from solar, wind, and backup power sources to give users comprehensive control of the data.

Results: Unlocked the potential of renewable energy sources and improved reliability across Xerogrid’s operations. The new platform has enabled Xerogrid to offer an energy management service that saves significant time and money and creates new jobs.

Case Study 2: Applelec Group – Lighting the Way Forward with Digital Transformation

  • Industry: Lighting manufacturer
  • Grant Used: High Impact Grant
  • Investment: Enterprise Resource Planning
  • Impact: Streamlining operations, improving internal processes, gaining greater visibility of business performance.

Challenge: Applelec Group,  a signage and architectural lighting manufacturer, based in Bradford, has been serving the industry for over two decades. Now it’s changing the way it operates and does business, and as the business has grown the need for a more cohesive system to connect departments, improve communication and to work more seamlessly, became apparent.

Solution: With a High Impact Grant, Applelec implemented a new enterprise resource planning (ERP) system. The new ERP system – which is tailored to fit Applelec’s unique needs – ties together sales, inventory, production, and customer service, providing a single platform for the entire team. It’s designed to make information accessible, improve communication, and streamline workflow, turning Applelec’s data into a powerful asset rather than a scattered collection of numbers and documents.

Results:

  • Reduction in production waiting time by 43%
  • Reduction in stock holdings by over 30%, injecting more funds into the business to fuel ambitious growth plans.
  • Improvements in business operations – increasing the standard of work while making it easier to manage overall, and improving outcomes for customers.

Take the Next Step in Digital Growth

Digital transformation is no longer an option, it is essential for businesses looking to remain competitive, improve efficiency, and drive long-term growth. As demonstrated by West Yorkshire businesses that have already benefited from Digital Enterprise grants, investing in digital technology can lead to increased productivity, higher revenue, and greater resilience in an ever-evolving economy.

The Future is Digital

Businesses that invest in digital technology today will be the ones leading West Yorkshire’s economy tomorrow. Whether you are a manufacturer improving efficiency, a service provider integrating automation, or a retailer expanding into e-commerce, Digital Enterprise grants provide the financial support needed to make your digital transformation a reality.

Don’t miss the opportunity to accelerate your business growth, take the next step and apply for a digital grant today.