Woolworths (ASX:WOW) share price rises amid $4m start-up support

Woolworths has put $4 million towards helping start-ups get into stores.

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The Woolworths Group Ltd (ASX: WOW) share price has gained 2.23% since the beginning of this week, despite no price sensitive news being released by the company.

However, Woolworths has announced it's providing $4 million of funding to small business accelerator Seedlab Australia. Seedlab will help small producers grow their businesses to get ready for retail distribution.

The Woolworths share price finished today's session trading for $38.93. That's 1.12% higher than its previous close and its highest closing price of all time.

Let's take a closer look at the latest news from Woolworths.

shopping trolley, grocery, retail, supermarkets, a man pushes a woman on a supermarket trolley

Image source: Getty Images

Woolworths funds small business

On Monday, Woolworths announced that it will be supporting 700 small businesses over the next 2 years.

The news didn't noticeably affect the Woolworths share price.

Seedlab will focus on start-ups making products in high-growth categories. These categories include artisan foods, health and wellness products, and sustainable products.

Seedlab's founder Dr Hazel MacTavish-West commented on the injection of $4 million:

We're thrilled to partner with Woolworths to launch Seedlab Australia and support emerging businesses with the knowledge they need to build distribution and reach their goals. 

It's wonderful to see Australia's largest supermarket invest in the industry pipeline to create opportunities for Australian food and drink businesses through our program.

Woolworths' director of buying Paul Harker also commented:

Investing in small businesses is crucial to a thriving Australian food and manufacturing industry…

Seedlab Australia will support pioneering businesses to grow and navigate what it takes to be retail ready and help us bring innovative new locally-made products to our customers. 

Seedlab's support will come at no cost to small businesses. It will offer owners live and online learning, advice, and chances to network.

Woolworths share price snapshot

This week's gains have added to the solid performance of the Woolworths share price.

Shares in Woolworths have gained 12% year to date. They have also gained 12.4% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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