The Enterprise Development Grant (EDG), designed for Singaporean companies, is a potent tool for businesses embarking on new projects aimed at business upgrade, growth, or overseas expansion. It’s not just a funding mechanism but a catalyst for transformation and innovation.
Tailored to individual business needs, EDG supports a range of project costs, including consultancy fees, software, equipment, and internal manpower. As of April 2023, local SMEs can benefit from up to 50% support for eligible costs, with sustainability-related projects receiving up to 70% support until March 2026.
What Does the EDG Support?
The Enterprise Development Grant (EDG) offers backing for projects that aim to enhance business capabilities, drive innovation, or venture into international markets across three key categories:
1. Core Capabilities
-
Business Strategy Development: Strengthen your business framework, refine growth strategies, and implement sustainable practices. Projects could involve assessing your company’s strengths, weaknesses, and competition, creating strategic roadmaps, and devising implementation plans.
Not covered: Stand-alone IP registration costs, assurance reports, or setting up a sustainability unit without integrated projects.
-
Financial Management: Optimize financial performance, develop strategies for financing, investment, and risk management, and identify avenues to minimize tax liabilities.
Not covered: Regulatory compliance costs, legal document drafting, or procurement of ICT solutions.
-
Human Capital Development: Enhance your team’s skills and capabilities through strategic HR management, learning and development initiatives, and talent management.
Not covered: Individual training courses or employee incentives.
-
Service Excellence: Improve service and product quality by understanding customer needs and enhancing customer-centric approaches.
Not covered: Incentives for mystery shoppers and customer survey respondents.
-
Strategic Brand and Marketing Development: Develop differentiated brand strategies and marketing plans to engage target audiences effectively.
Not covered: Production of marketing materials or implementation of marketing campaigns.
2. Innovation & Productivity
-
Automation: Utilize automation and technology to improve resource efficiency, with support available for large-scale deployment of automation solutions.
Not covered: Equipment costs supported under other grants, replacement of solutions without substantial improvements, or installation of basic off-the-shelf solutions.
-
Process Redesign: Streamline workflows, explore technological automation, and enhance performance measurement systems.
-
Product Development: Create innovative products and services for commercialization, emphasizing sustainability and market viability.
Not covered: Projects with low technological innovation or initial product development.
3. Market Access
-
Pilot Project and Test Bedding: Expand into new markets by validating product viability without generating revenue initially.
-
Standards Adoption: Attain relevant certifications and standards to increase trust in your products and services.
Not covered: Recertification costs, local regulatory standards, or testing existing products.
Who Can Apply for the EDG?
So, who is eligible for an SME grant? The eligibility for the Enterprise Development Grant is thoughtfully structured to benefit a broad range of businesses while ensuring effective utilization of resources. The criteria are designed to support those most in need of this boost while encouraging responsible and impactful business transformations.
Additionally, companies eligible for the SkillsFuture Enterprise Credit may receive supplementary subsidies, making the EDG an even more attractive proposition.
Basic Eligibility Requirements:
- Business Registration: The applicant must be a business entity registered and actively operating in Singapore. This criterion ensures that the grant benefits are directed towards contributing to Singapore’s economy.
- Local Equity: A minimum of 30% local equity is required, underlining the grant’s focus on supporting homegrown businesses.
- Financial Health: The company should exhibit the financial capacity to start and complete the proposed project. This is assessed using common financial indicators, ensuring that the grant supports viable and sustainable projects.
Assessment Criteria
Applications for the EDG are meticulously evaluated by EnterpriseSG. This evaluation hinges on three critical aspects:
- Scope of the Project: The project must be clearly defined with tangible outcomes, aligning with the grant’s objectives.
- Projected Outcomes: The anticipated impact and benefits of the project are scrutinized to gauge its potential contribution to the business and wider economy.
- Service Provider Competency: The expertise and credibility of any third-party service providers involved are assessed to ensure quality and effectiveness.
Consider getting assistance from a business consultant or a company that helps you with your projects as well. Therefore, as a business consultant, HashMicro is more than happy to assist you with guidelines for applying for the grant.
How to Apply for the Enterprise Development Grant
1. Applying for the Enterprise Development Grant (EDG)
-
Identify Project Category: Choose your specific EDG project category. No pre-approved vendors are available.
-
Management Consultancy Support: Engage consultants with TR 43 or SS 680 certification for EDG support. Certification is mandatory for most roles except specific functions.
-
Selecting Consultants: Ensure consultants meet general competency, domain expertise, and possess soft skills as outlined in the checklist.
-
Certified Consultants: Access lists of certified consultants from accredited bodies like the Institute of Management Consultants (Singapore), Singapore Business Advisors and Consultants Council Ltd, and TÜV SÜD PSB.
-
Application via Business Grants Portal (BGP): Sign in with Corppass. Third-party companies cannot apply on behalf of applicants.
-
Prepare Application Documents: Gather necessary documents, ensuring project novelty and non-revenue generation before application.
-
Submission Timeline: Projects considered commenced before application aren’t eligible.
2. Document Checklist and Submission
- Prepare Mandatory Documents: Latest ACRA search, financial statements, project proposal, and relevant quotations.
- Supporting Documents: Hardware/software quotations, staff employment letters, and detailed consultancy proposals.
3. Claims Process
- Reimbursement Basis: Submit claims after project completion within six months from the project’s end.
- Claim Submission Steps: Refer to the Letter of Offer, update disbursement preferences, and prepare necessary documents.
- Post-Submission: Await verification, approval, and disbursement processes.
For more comprehensive instructions and official templates, you can visit EnterpriseSG’s website here.
Conclusion
The Enterprise Development Grant (EDG) is a powerful ally for Singapore-based businesses looking to innovate and expand. With its substantial support for a range of project costs and a focus on transformation and growth, the EDG offers a unique opportunity for businesses to advance their capabilities and reach new heights.
As we move further into 2023, leveraging this grant could be the key to unlocking your business’s potential and driving long-term success, especially if you are interested in implementing ERP software.
Interested in exploring how the EDG can benefit your business? Consider trying a free demo to understand how HashMicro’s solutions can integrate with your EDG-supported projects, enhancing your business’s journey towards growth and innovation.
Are you a Singapore-based business owner looking to innovate, grow, or venture overseas? Navigating through many opportunities and challenges in the business landscape can be daunting. Have you considered leveraging the Enterprise Development Grant (EDG) to propel your business forward? Is there a grant for SMEs in Singapore in 2023? This comprehensive guide will explore the essentials of EDG, helping you understand how it can be a game-changer for your business in 2023.
Key Takeaways
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Table of Content:
Table of Content
What is the Enterprise Development Grant?
The Enterprise Development Grant (EDG), designed for Singaporean companies, is a potent tool for businesses embarking on new projects aimed at business upgrade, growth, or overseas expansion. It’s not just a funding mechanism but a catalyst for transformation and innovation.
Tailored to individual business needs, EDG supports a range of project costs, including consultancy fees, software, equipment, and internal manpower. As of April 2023, local SMEs can benefit from up to 50% support for eligible costs, with sustainability-related projects receiving up to 70% support until March 2026.
What Does the EDG Support?
The Enterprise Development Grant (EDG) offers backing for projects that aim to enhance business capabilities, drive innovation, or venture into international markets across three key categories:
1. Core Capabilities
-
Business Strategy Development: Strengthen your business framework, refine growth strategies, and implement sustainable practices. Projects could involve assessing your company’s strengths, weaknesses, and competition, creating strategic roadmaps, and devising implementation plans.
Not covered: Stand-alone IP registration costs, assurance reports, or setting up a sustainability unit without integrated projects.
-
Financial Management: Optimize financial performance, develop strategies for financing, investment, and risk management, and identify avenues to minimize tax liabilities.
Not covered: Regulatory compliance costs, legal document drafting, or procurement of ICT solutions.
-
Human Capital Development: Enhance your team’s skills and capabilities through strategic HR management, learning and development initiatives, and talent management.
Not covered: Individual training courses or employee incentives.
-
Service Excellence: Improve service and product quality by understanding customer needs and enhancing customer-centric approaches.
Not covered: Incentives for mystery shoppers and customer survey respondents.
-
Strategic Brand and Marketing Development: Develop differentiated brand strategies and marketing plans to engage target audiences effectively.
Not covered: Production of marketing materials or implementation of marketing campaigns.
2. Innovation & Productivity
-
Automation: Utilize automation and technology to improve resource efficiency, with support available for large-scale deployment of automation solutions.
Not covered: Equipment costs supported under other grants, replacement of solutions without substantial improvements, or installation of basic off-the-shelf solutions.
-
Process Redesign: Streamline workflows, explore technological automation, and enhance performance measurement systems.
-
Product Development: Create innovative products and services for commercialization, emphasizing sustainability and market viability.
Not covered: Projects with low technological innovation or initial product development.
3. Market Access
-
Pilot Project and Test Bedding: Expand into new markets by validating product viability without generating revenue initially.
-
Standards Adoption: Attain relevant certifications and standards to increase trust in your products and services.
Not covered: Recertification costs, local regulatory standards, or testing existing products.
Who Can Apply for the EDG?
So, who is eligible for an SME grant? The eligibility for the Enterprise Development Grant is thoughtfully structured to benefit a broad range of businesses while ensuring effective utilization of resources. The criteria are designed to support those most in need of this boost while encouraging responsible and impactful business transformations.
Additionally, companies eligible for the SkillsFuture Enterprise Credit may receive supplementary subsidies, making the EDG an even more attractive proposition.
Basic Eligibility Requirements:
- Business Registration: The applicant must be a business entity registered and actively operating in Singapore. This criterion ensures that the grant benefits are directed towards contributing to Singapore’s economy.
- Local Equity: A minimum of 30% local equity is required, underlining the grant’s focus on supporting homegrown businesses.
- Financial Health: The company should exhibit the financial capacity to start and complete the proposed project. This is assessed using common financial indicators, ensuring that the grant supports viable and sustainable projects.
Assessment Criteria
Applications for the EDG are meticulously evaluated by EnterpriseSG. This evaluation hinges on three critical aspects:
- Scope of the Project: The project must be clearly defined with tangible outcomes, aligning with the grant’s objectives.
- Projected Outcomes: The anticipated impact and benefits of the project are scrutinized to gauge its potential contribution to the business and wider economy.
- Service Provider Competency: The expertise and credibility of any third-party service providers involved are assessed to ensure quality and effectiveness.
Consider getting assistance from a business consultant or a company that helps you with your projects as well. Therefore, as a business consultant, HashMicro is more than happy to assist you with guidelines for applying for the grant.
How to Apply for the Enterprise Development Grant
1. Applying for the Enterprise Development Grant (EDG)
-
Identify Project Category: Choose your specific EDG project category. No pre-approved vendors are available.
-
Management Consultancy Support: Engage consultants with TR 43 or SS 680 certification for EDG support. Certification is mandatory for most roles except specific functions.
-
Selecting Consultants: Ensure consultants meet general competency, domain expertise, and possess soft skills as outlined in the checklist.
-
Certified Consultants: Access lists of certified consultants from accredited bodies like the Institute of Management Consultants (Singapore), Singapore Business Advisors and Consultants Council Ltd, and TÜV SÜD PSB.
-
Application via Business Grants Portal (BGP): Sign in with Corppass. Third-party companies cannot apply on behalf of applicants.
-
Prepare Application Documents: Gather necessary documents, ensuring project novelty and non-revenue generation before application.
-
Submission Timeline: Projects considered commenced before application aren’t eligible.
2. Document Checklist and Submission
- Prepare Mandatory Documents: Latest ACRA search, financial statements, project proposal, and relevant quotations.
- Supporting Documents: Hardware/software quotations, staff employment letters, and detailed consultancy proposals.
3. Claims Process
- Reimbursement Basis: Submit claims after project completion within six months from the project’s end.
- Claim Submission Steps: Refer to the Letter of Offer, update disbursement preferences, and prepare necessary documents.
- Post-Submission: Await verification, approval, and disbursement processes.
For more comprehensive instructions and official templates, you can visit EnterpriseSG’s website here.
Conclusion
The Enterprise Development Grant (EDG) is a powerful ally for Singapore-based businesses looking to innovate and expand. With its substantial support for a range of project costs and a focus on transformation and growth, the EDG offers a unique opportunity for businesses to advance their capabilities and reach new heights.
As we move further into 2023, leveraging this grant could be the key to unlocking your business’s potential and driving long-term success, especially if you are interested in implementing ERP software.
Interested in exploring how the EDG can benefit your business? Consider trying a free demo to understand how HashMicro’s solutions can integrate with your EDG-supported projects, enhancing your business’s journey towards growth and innovation.
