Oliver Hill from Wheddon Cross said: "Exmoor and sheep go hand-in-hand - where’s there’s sheep they will always need shearing."
Exmoor Society trustee, John Wibberley said, "Already Oliver Hill has taken on apprentices and has scope and intention to develop his business to cover this vital role.
"His award will enable him to renew his trailer and equipment and strengthen his opportunities to champion the key role of sheep in managing Exmoor’s landscapes."
Oliver added: "I am thrilled to be able to invest the Pinnacle Award into my business to make it grow and keep this important and ancient skill alive while supplying a service to the farmers of Exmoor and wider area. Wool is also the obvious and best choice to ease and stop plastic pollution and help with climate change while keeping traditional skills alive."
The £5,000 Pinnacle Award, now in its second decade, recognises and encourages young Exmoor entrepreneurs whose businesses would benefit from funding.
Candidates must be 35 or under and provide a business plan for a start-up idea, or for a business already sufficiently viable to benefit from further financing.
Exmoor Society chairman Rachel Thomas, said: "In this year’s competition, Oliver Hill faced a short-list of keen contestants, and it is the hope of the Exmoor Society that we can in various ways showcase the impressive offerings of the young people with most inspiring local businesses from that list. Rural enterprise on Exmoor is in good hands".