Encourages beasty type not finished with set up (8)
I believe the answer is:
animates
'encourages beasty type' is the definition.
I can't tell whether this defines the answer.
'not finished with set up' is the wordplay.
'not' becomes 'anima' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'finished with' means one lot of letters go next to another.
'up' is a reversal indicator (in down clue: letters go upwards).
'set' back-to-front is 'tes'.
'anima'+'tes'='ANIMATES'
Can you help me to learn more?
(Other definitions for animates that I've seen before include "Enlivens" , "Brings to life" , "Gives life or movement to, say cartoon" .)