Pathways Fund Guidance 2025/2026
What is the Pathways Fund
The Pathways Fund (the Fund), administered by Inspirent on behalf of the Scottish Government provides grants of up to £150,000 to organisations that are widening access to entrepreneurship to under-represented and under-supported groups and communities in Scotland.
Funding is available to support projects that:
- Expand access to entrepreneurship for women and under-represented or under-supported groups and communities
- Deliver skills development, mentorship, networking and collaboration for female entrepreneurs and entrepreneurs from under-represented groups
- Promote entrepreneurship as a tool to tackle economic inactivity
Who Can Apply?
The Fund welcomes applications from a diverse range of participants.
Eligible applicants include:
- Ecosystem builders such as incubators, accelerators & community groups – supporting early-stage entrepreneurs through activities, resources and events.
- Universities, colleges & education providers fostering enterprise learning and innovation in under-represented or under-supported communities.
- Established businesses and private organisations that are in a position to drive innovation and support entrepreneurial development and collaborate with pre-start and early stage businesses and widen participation in entrepreneurship
- Industry associations, third-sector organisations and non-profits enabling early-stage entrepreneurship and start-up in their communities or sectors
- Private organisations that are in a position to drive innovation and support entrepreneurial development in under-represented or under-supported groups and communities.
- Un-constituted groups or individuals – exploring opportunities to encourage entrepreneurship, facilitating knowledge sharing or creating opportunities for collaboration in their communities
- Business Gateway Economic Development Teams are eligible to apply for the Pathways Fund, provided the proposed activity is a new initiative specifically targeted at women and underrepresented groups. The initiative must align with the aims of the Pathways programme and be distinct from any existing support currently being delivered. Local economic development groups and academic institutions are also eligible to apply, whereas core government agencies and public bodies are not.
Applicants must:
• Be headquartered in Scotland or have significant operations here
• Have no outstanding legal issues that could impede project delivery
• Comply with all relevant regulations and legal requirements applicable to the proposed project, including enhanced safeguarding measures for any projects involving minors or vulnerable groups
About the Pathways Fund
The Fund is to support organisations, groups, individuals and activities that will strengthen and diversify Scotland’s entrepreneurial ecosystem, promote entrepreneurship and business start-up in under-represented and under-supported groups and reduce economic inactivity.
What are the objectives of the Pathways Fund?
Scottish Government’s Pathways Fund: A Strategic Initiative
This fund has been developed to widen participation in entrepreneurship, in response to the independent "Pathways: A New Approach for Women in Entrepreneurship" report Pathways: A new approach for women in entrepreneurship - gov.scot.
The report highlighted the persistent gender gaps in entrepreneurial participation and provided broad recommendations for action to tackle those gaps.
The Pathways Fund aims to support organisations, groups and individuals that widen participation in entrepreneurship at pre-start and early stage of business development and promote entrepreneurship in under-represented or under-supported groups and communities.
The Fund will support individuals and organisations to create new projects or to develop and broaden existing activities to new beneficiaries.
Your organisation must either be headquartered in Scotland or have significant operations based here.
What is the Pathways Fund for/not for?
Proposals are invited that will:
Reduce Economic Inactivity - Supporting entrepreneurship as an opportunity for individuals, groups and communities who may experience exclusion from economic activity.
Widen Participation in Entrepreneurship: In alignment with Scotland’s broader social and economic policies, the Fund actively seeks to increase participation by individuals and groups who have traditionally been under-represented in entrepreneurial endeavours. This includes a particular focus on closing the gender gap in entrepreneurial participation.
Supporting Ecosystem Development: The Fund also seeks to diversify the overall entrepreneurial environment by promoting initiatives that build networks, foster collaborative relationships, and expand mentorship opportunities to groups that have been historically marginalised.
What the Fund Supports:
The Fund is open to proposals that widen participation in entrepreneurship, with a particular emphasis on women and under-represented or under-supported groups and communities.
Sector or industry specific proposals are welcome but should demonstrate how they contribute to the broader ecosystem rather than focusing on a specific domain.
Successful proposals typically demonstrate:
• Strong Impact Potential: Proposals should clearly show how they will strengthen Scotland's entrepreneurial ecosystem. This might include improving access to expertise, creating valuable connections, developing new resources or addressing specific gaps in current support provision.
• Innovation in Approach: We welcome fresh thinking in how to support entrepreneurs. This could mean new types of support, innovative delivery methods or creative ways to reach underserved communities.
• Collaboration: Strong proposals often involve partnership approaches, bringing together different organisations or sectors to create more comprehensive support.
• Future Planning: Where relevant, projects should consider how their impact might continue beyond the funding period. This could involve capturing learning, sharing resources or developing networks that can be sustained.
• Diversity and Inclusion: We value proposals that embed principles of diversity, inclusion and accessibility in their approach. This includes considering how diverse entrepreneurs' needs are addressed, ensuring physical and digital accessibility, and creating a welcoming environment for all entrepreneurs regardless of background.
The types of activities encouraged, but not limited to are:
- Community-building and networking initiatives
- Sustainable impact projects benefiting local communities
- Innovation in entrepreneurial support delivery
- Developing pathways to start and grow businesses
Is my organisation eligible to apply?
The Fund is open to Proposals from organisations, individuals, and informal networks. Organisations must be Headquartered in Scotland, or have significant operations based here.
• For individuals and informal networks, applicants should be primarily based in Scotland and demonstrate their connection to the Scottish entrepreneurial ecosystem.
• Proposals can be from private, public* or third sector organisations or individuals seeking to develop or scale up initiatives which meet the objectives of the Fund.
• We encourage partnership-based, collaborative proposals, including, where appropriate, collaborations with international partners. Only one organisation or individual may be designated the Lead Organisation and would be the organisation or person that will contract with Inspirent to receive the Award and be fully responsible for adhering to all terms and conditions of the Award.
• To be eligible for funding, the Awardee must, where applicable, demonstrate good business practices, where relevant, including principles relating to Fair Work practice and a commitment to Net Zero. Applicants will have the opportunity to describe their approach to these areas in the application form.
Applicants must be solvent, hold a UK bank account, and demonstrate robust[LM1] financial control over income and expenditures. In addition, organisations are required to provide a hard copy, PDF or web link to the most recent audited Annual Financial Accounts. Align with the Fair Work framework and adhere to ethical business practices.
It is important to note that the Fund does not support certain activities, including entrepreneurial education projects supporting those aged 18 and below for which applicants should refer to the Entrepreneurial Education Pathways Fund, capital investments, office space acquisition, equipment purchases, or any purely commercial ventures that do not align with the Fund’s objectives.
Funding Amounts
The Fund offers grants up to £150,000. There is no minimum funding threshold – we especially welcome applications for small-scale, grassroots initiatives that can have a meaningful impact on the ecosystem. We recognise that many grassroots and community-led initiatives have been traditionally underserved by public sector funding, and we're committed to nurturing these vital components of Scotland's entrepreneurial community.
In exceptional cases, larger-scale projects may be considered. This flexibility ensures that both smaller, innovative projects and more ambitious initiatives can benefit from the Fund’s support.
Application Process
Applicants are required to submit detailed proposals covering the following components:
- 1. Project Description (2000 words): What you're proposing to do, why it's needed, and how it will widen participation in entrepreneurs in Scotland.
- 2. Expected outcomes (500 words): What you hope to achieve, who will benefit, and how you'll measure success
- 3. Delivery Plan (500 words): How you’ll implement the project.
- 4. Milestone table
- 5. Delivery timescale table
- 6. Future Plans (500 words): Setting out your plans beyond the funded period and any legacy benefits of the programme.
- 7. Experience & Capability (500 words): Details of the track record and relevant expertise of the applicant, setting out your ability to successfully deliver the project.
- 8. Budget Breakdown: An itemised budget showing the allocated resources and projected costs, ensuring transparency and accountability.
Proposals will be carefully reviewed against defined assessment criteria to ensure that funding is allocated to projects with the highest potential for significant, lasting change.
Proposal Assessment
Proposals are assessed in three stages:
- 1. Due Diligence: Checks to ensure suitability.
- 2. Specialist Assessment: Review against criteria.
- 3. Final Decisions: Validation Panel reviews scores and distributes funds.
Eligible applications meeting the quality threshold but not funded due to budget limitations will be retained on a reserve list for potential future funding.
Assessment Criteria
- Impact Potential (35%)
- Value for Money (25%)
- Delivery Capability (20%)
- Future Sustainability (10%)
- Innovation and Alignment with Pathways(10%)
How will funding be awarded?
Successful applicants will receive a contract award letter by email. The contract will outline the total grant awarded, the approved milestones, and the corresponding grant payments for each milestone. Once a milestone has been achieved, applicants must upload evidence of completion along with proof of eligible expenditure. Following verification, the grant payment will be made to the nominated bank account.
When must projects be delivered?
All proposed activity must be delivered, and all project costs incurred by 31st March 2026.
• As well as based on quality, projects will be assessed for feasibility of delivery within this timescale. Therefore, be ambitious, but realistic when submitting your proposal.
Where should projects be delivered?
· We want activity to be as accessible as possible and therefore welcome project delivery taking place anywhere across Scotland, and especially in disadvantaged areas where beneficiaries may have additional challenges in accessing entrepreneurial support activity.
What is the timeline?
The following timeline serves as a guide for the application and implementation process, with specific dates to be confirmed:
Fund Launch: Tuesday 29th July 2025
Applications Open: Tuesday 29th July 2025
Information Sessions: August 2025
Application Deadline: 5:00 pm Monday 18th August 2025
Assessment Period: 26th September 2025
Funding Decisions Announced: 30th September 2025
Project Implementation: 1st October 2025 – 31st March 2026
Completion Deadline: 31 March 2026
Final Reporting Deadline: 30 April 2026
Collaborative Applications: Partnerships and Joint Projects
Recognising that many innovative projects benefit from multiple perspectives and combined expertise, the Fund encourages applications submitted on behalf of partnerships or collaborations. When applying on behalf of a group, it is essential that all partners are clearly mentioned in the proposal. However, only one organisation or individual may be designated as the Lead Organisation, thereby assuming full contractual and legal responsibility for the project.
Such collaborative efforts not only enhance the overall quality of the project but also help reach broader audiences and ensure that a diverse range of stakeholders is engaged in Scotland’s entrepreneurial journey.
Project Monitoring
Effective monitoring is critical for the successful delivery of project objectives. Awardees will have monthly check-ins with a dedicated Business Growth Partner from Inspirent to review progress, address any delays or risks, and ensure that planned activities are being executed effectively. At the end of the project—and again after a period of 12 to 18 months—lead organisations will complete a comprehensive survey designed to capture long-term impacts and inform future funding cycles.
Project Changes and Non-Delivery
• Some minor changes to projects are to be expected, e.g., event dates being moved, number of participants fluctuating, programmes being altered to better fit the participants etc. However, awardees must be proactive about staying in touch with the Inspirent Business Growth Partner to be sure that any changes are made known, any unforeseen impact on the Contract is discussed and managed as appropriate.
• Moderate or significant material changes to your project must be proposed and discussed in advance with the Inspirent Business Growth Partner and may mean, in some cases, that an Amended Contract is required. This could impact on the amount, terms, and conditions of the award, so ensuring that any changes to projects, big or small, are done with prior agreement to avoid any issues.
What is Eligible Spend and non-eligible spend?
Including but not restricted to the following:
- Venue and catering costs for in-person events
- Event printing collateral; signs, badges
- Digital collateral to promote or support events/initiatives e.g., licensing/hosting, website updates, content, marketing, PR, media buying
- Event management fees
- Event delivery fees e.g., staging, AV, signage
- Speaker / Special Guest Fees
- Content production e.g., videos, toolkits, guides and other information or learning materials
- New staff costs (contractors, freelancers, fixed term hires) directly attributed to the project delivery and for the duration of the project only (NB: existing staff costs are not eligible)
- Community group compensation; honorariums/fees for local community groups/charities/CICs/volunteers contributing to projects
- Supporting or providing childcare services to make events more accessible to parents/carers
- Providing accessibility accommodations e.g., adaptations to marketing, operational delivery of events, sign language interpreters, wheelchair ramps, assisted listening devices at events or venues/locations
- Converting existing materials e.g., content/website/resources to be more inclusive and accessible
- Documentation: Videography, photography and transcription services to document and share event content
- Transport e.g., costs for participant, speaker/guest mileage, bus, rail and flights where necessary. The lowest carbon option should be chosen wherever possible. Note: costs towards any flights must be economy for flights within the UK and EU. Contributions must be economy, premium economy or business class for flights out with the EU. First class flights or rail travel is not eligible
- Accommodation – speaker/guest/participant accommodation can be contributed to or covered where necessary and proportionate to the event and outputs of the project
- Consultancy costs where directly delivering activity for and with early-stage entrepreneurs
- Staff Training – is eligible where it has a direct relevance to the specific entrepreneurship project e.g., net zero, fair work, disability awareness
- Business advice/mentoring fees where directly delivering activity for and with early-stage entrepreneurs
- VAT – where organisations are not VAT registered, this is eligible and can be included in your costs against this project
- Other costs associated with the delivery of the project as described in the application that are fair, appropriate and proportionate to the proposed outputs.
Ineligible Spend
Including and not restricted to the following.
- Existing initiatives - Proposals should preferably be for new activities or existing activities that are being significantly developed/scaled up to reach broader groups and widen participation/accessibility. This Fund is not for ongoing programmes, or core costs
- Existing staff costs that constitute your business-as-usual obligations should not be included. However, where a case is made for redeployment of staff(s) on a full or part-time basis to deliver the specific project, this will be considered on a case-by-case basis
- Business as usual, operational costs – anything that the organisation would have to pay for anyway, regardless of this project, business travel/meeting costs, general staff training/CPD
- Capital costs; purchase of facilities, equipment, hardware
- Professional Service Fees – accounting, legal, insurance fees incurred in the course of business as usual or project delivery
- VAT – where organisations are VAT registered, VAT is not eligible and cannot be included in your costs against this project
- First class travel by rail/air is ineligible
- Superfluous accommodation costs are not eligible e.g., over-staying, or where the accommodation was unnecessary for the delivery of the outputs of the project.
• Awardees must retain all records, receipts and invoices for a minimum period of three years following the close of the contract. Payment of the grant will be only be made upon submission of proof of eligible expenditure.
• Where spend cannot be evidenced, there is a right to claw back funding.
Private Sector Participation
We encourage proposals that include private sector participation, whether through direct partnerships, co-funding arrangements or in-kind support. While not mandatory, involving private sector organisations can help strengthen projects by:
- Providing additional resources and expertise
- Creating pathways to sustainability beyond the funding period
- Building connections between startups and established businesses
- Opening access to potential investors and customers.
Applicants without existing private sector relationships are still encouraged to apply. The Fund may be able to facilitate introductions to relevant private sector organisations where appropriate.
Grant Letter and Fair Work First Criteria
Successful applicants will receive a grant contract letter detailing the funding amounts, an itemised list of eligible expenses, programme objectives and milestones.
In alignment with the Scottish Government’s commitment to a fair and equal society, all organisations receiving funds must adhere to the Fair Work First criteria Fair Work First: guidance - gov.scot. This includes ensuring:
- Payment of at least the real Living Wage.
- Provision of effective mechanisms for workers’ voices, such as trade union recognition.
- Sustained investment in workforce development.
- Avoidance of inappropriate zero-hour contracts.
- Active measures to address the gender pay gap and create a diverse, inclusive workplace.
- Adoption of flexible and family friendly working practices from day one.
- A clear stance against fire and rehire practices.
Each grant recipient must maintain a publicly accessible statement confirming their commitment to these principles and demonstrate ongoing compliance throughout the life of the project.
Final Considerations and Future Outlook
In summary, the Entrepreneurial Pathways Fund is a critical instrument in driving Scotland’s entrepreneurial ambitions forward. These initiatives are the result of a concerted effort by policymakers and industry experts to create a supportive and dynamic ecosystem where business innovation can thrive.
Successful applicants will benefit from:
- Structured Financial Support:
- Access to competitive grants tailored to the needs of early stage and growth -oriented businesses.
- Ongoing Mentorship and Network Engagement:
- Regular interactions with assigned Business Growth Partners and established industry experts, ensuring that projects remain on track.
- Enhanced Visibility and Strategic Partnerships:
- Collaborative projects foster long-term partnerships that extend beyond the funding period, delivering prolonged economic impact.
Looking forward, these initiatives are expected to generate significant socioeconomic benefits. They are poised to not only bridge current gaps in entrepreneurial support but also to shape the future course of business innovation in Scotland. The comprehensive nature of these funds ensures that a wide range of projects—from digital innovations to community-based initiatives—receive the necessary backing to drive positive change.
The commitment to Fair Work principles and ethical business practices further cements the Fund’s role as a cornerstone of Scotland’s entrepreneurial agenda. By setting rigorous standards and providing sustained support, the Fund is instrumental in building a fairer, more inclusive business environment. Every proposal received will be assessed not merely on its financial merits but also on its potential contribution to the broader social framework of equality and innovation.
In closing, it is our expectation that this approach to fund dissemination will empower more entrepreneurs to take bold steps in their business journeys. We encourage all eligible organisations to consider the long-term transformational potential of their projects and to apply with innovative strategies that align with the vision of a dynamic, inclusive economy.
Scottish Government’s Pathways Fund: A Strategic Initiative
The Scottish Government has also introduced the wider Pathways Fund. This distinct initiative emerged from extensive research and policy reviews, including insights from the independent “Pathways: A New Approach for Women in Entrepreneurship” report Pathways: A new approach for women in entrepreneurship - gov.scot. The report—developed by noted experts Ana Stewart and Mark Logan—highlighted the persistent gender gaps in entrepreneurial participation and provided broad recommendations for both immediate intervention and long-term strategies in education and business support
It is open to UK‑registered entities operating in Scotland and underlines a strategic commitment to widen participation in the entrepreneurial process. By addressing the barriers faced by underrepresented groups, particularly women, the Pathways Fund contributes to building a more diverse and resilient economic landscape across the nation.