New funding available for businesses in Greater Manchester’s foundational economy to trial innovative new ideas
A £1m fund is offering businesses and organisations in Greater Manchester’s “foundational economy” grants to trial innovative new ideas and improve the way they work.
The foundational economy refers to the parts of the economy people depend on for their daily needs – sectors like health and social care, early education and childcare, and high street businesses (retail, hospitality, culture and leisure).
Greater Manchester’s groundbreaking Foundational Economy Innovation Fund was established to help these sectors become more productive and resilient. The foundational economy accounts for about 40 per cent of jobs in Greater Manchester, but businesses are often overlooked by investors from the private sector, which limits their ability to innovate.
The first round of the fund supported a wide range of creative ideas across 40 different businesses and organisations from the private, public and voluntary sectors.
A second round of funding has now been launched, with businesses and organisations being asked to come forward with an initial expression of interest.
To find out more and submit an expression of interest, visit the Foundational Economy Innovation Fund web page.
Cllr Bev Craig, leader of Manchester City Council and Greater Manchester Lead for Economy, Business and Inclusive Growth, said: “Greater Manchester’s foundational economy comprises thousands of businesses and organisations who supply the truly essential goods and services. These sectors provide the foundations for the rest of our economy and society.
“But too often these sectors are undervalued and overlooked when it comes to investment. In Greater Manchester we set up the Foundational Economy Innovation Fund to address this issue. By directing investment and backing creative ideas, we are also recognising the true value of the foundational economy.
“The first round of the fund was a resounding success, and we are excited to launch additional funding. If you work in the foundational economy and have an idea for improving your business or sector, get in touch to find out more.”
Grants of up to £11,000 will be awarded in the fund’s first phase for projects to trial new ideas and innovations. A second phase will provide businesses and organisations with up to £60,000 to further develop their ideas.
The fund is looking for ideas to respond one of three “challenges” – localising supply chains and cutting carbon emissions and energy bills; finding more effective or efficient ways to provide their goods and services; and supporting the workforce. If successful, these projects could be scaled up to support other businesses across Greater Manchester.
The Foundational Economy Innovation Fund was first launched in 2023 in response to the Greater Manchester Independent Prosperity Review – a report by a group of eminent economists – which recommended action to support innovation in sectors where employment is high, but productivity growth and wages remain stubbornly low.
Funding recipients in the first round include PossAbilities CIC, which provides support services for adults with learning difficulties and other vulnerable people. It used its funding to pilot a digital library of activities that allows carers and personal assistants across the UK to quickly find activities.
Michael O’Keeffe, special advisor at PossAbilities, said: “Caregivers frequently lack the time, training or tools to plan engaging activities that align with individual needs, and this leads to repetitive, unfulfilling routines. Our goal is to support thousands of adults to improve their life skills and live the lives they choose. And for providers across the industry, it’s about creating efficiency savings by offering a ready-made solution that can replace the need to create or adapt their own activities.
“The help we’ve received has made a world of difference. These grants, along with related input and expertise from GM Business Growth Hub and Manchester Metropolitan University, meant we could not only turn our ideas into reality but do so in a way that will benefit a much wider audience.”
The fund has also backed JIFFL, a Greater Manchester start-up which is providing an app for part-time recruitment that simplifies the entire process for both jobseekers and employers.
Usman Aziz, co-founder of JIFFL, said: ““In today’s age, small businesses, especially in sectors like hospitality, still use traditional methods to hire, and that’s neither efficient nor scalable.
“When you’re at an early stage like we are, you’re seen as high risk. These days, the expectation is that you should have your product in the market with some traction, and only then are investors likely to come on board. Thankfully, the Fund gave us the help we needed to develop the app, build a brand identity, and take us towards market entry.”