In the modern-day, it is more crucial than ever for companies to have a strong business foundation and solid strategy. They should also be able to adapt to the constant technological changes and come up with new innovations, as well as build their international presence. Government grants such as the Enterprise Development Grant (EDG) help companies in Singapore grow and enter the global market.
Are you a business that seeks to transform and elevate your status to the international front? Applying for an EDG might be the best next step for you. It will help you develop multiple facets of the business to compete on a global level while stamping authority as a big-league brand.
If you’re still unconvinced about the EDG or not fully aware of what this grant is, let us take a closer look at the Enterprise Development Grant to understand how it can benefit your organization. More importantly, why Singaporean small and medium-sized enterprises should apply for it!
What is the Enterprise Development Grant?
The Enterprise Development Grant (EDG) is an Enterprise Singapore grant that empowers Singaporean in their quest to develop and evolve. The grant seeks to support specific projects that upgrade your business, inject innovations, and catapults your company into the global market.
EDG molded out of the Global Company Partnership and Capability Development Grant In 2018. The rationalized EDG model offers universal eligibility principles, bidding platform, and support level, thereby reducing mix-ups for companies.
The core mission behind this grant is to provide a holistic approach to companies wishing to develop deep capabilities when scaling locally and internationally.
The 3 Pillars of EDG Support
In striving to bolster businesses across a variety of industries, the EDG offers support in three different areas. These will help you innovate, upgrade, and grow your business.
1. Core Capabilities
If your project falls under Core Capabilities, the focus would be to help the business ready for a transformation by strengthening core foundations. This will expand its capacity to adapt to the changes and challenges that come with rapid growth.
Core Capabilities go beyond basic business aspects and involves five different areas: Business Strategy Development, Financial Management, Human Capital Development, Service Excellence, as well as Strategic Brand and Marketing Development.
One of the highlights is streamlining your business strategies, which will trigger faster and more meaningful company growth. This includes works like analyzing gaps within the company, identifying strengths, weaknesses, and competition, and developing business frameworks or policies. You will also receive advice for implementation, planning growth strategies, and enhancing competitiveness.
Financially, your company will be optimized to support maximum growth. EDG will also help equip the management team with the right skillsets to run the company’s resources. From developing business finances, investment, and risk management, to minimizing tax liabilities.
Human Resource (HR) is also a crucial part of any business, especially one that seeks to emphasize its global presence. With EDG, you can improve your HR capacities to accommodate the various business strategies. The project may address issues such as compensation and benefits, organization culture, international mobility, performance management and job redesign. In short, everything you may need!
Furthermore, the Service Excellence factor helps you understand what your customer needs and how they make decisions. In turn, you can enhance the company’s delivery of services. As you conduct in-depth customer research, analysis and redesign the service process, this will allow you to engage more with them.
And to make your brand stand out better by capturing the right target market and audience, an EDG grant will aid the development of unique brand strategies that set you apart from the competition.
Completely synergize resource taxing relationships via premier niche markets. Professionally cultivate one-to-one customer service with robust ideas. Dynamically innovate resource-leveling customer service for state-of-the-art customer service. Objectively innovate empowered manufactured products whereas parallel platforms. Holisticly predominates extensible testing procedures for reliable supply chains. Dramatically engage top-line web services vis-a-vis cutting-edge deliverables. Proactively envisioned multimedia-based expertise and cross-media growth strategies. Seamlessly visualize quality intellectual capital without superior collaboration and idea-sharing. Holistically pontificate installed base portals after maintainable products.
2. Innovation and Productivity
The next set of projects are classified in Innovation and Productivity, which aims to help companies grow by exploring new ways to enhance productivity. This includes anything from redesigning workflow or process, using automation and technology, and product development.
In the 21st century, the smart business operations would make use of automation to stimulate growth and efficiency. The EDG will help you utilize hardware and software solutions, purchase new machines, and integrate the right systems.
Not only that, we will also help your business review the current process and identify problem areas. This is essential if you are planning to introduce new technology or increase automation.
Learn about the ins and outs of your processes, what can be improved, and which are redundant. You can also ask to develop performance measures and a roadmap for future actions.
Moreover, EDG can help you achieve commercialization by innovating technology and developing products by researching market viability. It also guides you in understanding users and potential demand, as well as developing prototypes and small batches of production.
SMEs in particular would benefit from prioritizing innovation and maximizing productivity. Especially when they are trying to break into the global frontier of upscale brands and international firms.
3. Market Access
Finally, we have the Market Access projects which encourages companies to expand their target market and tap into the global business scene. This is ideal for those who are ready to achieve their international potential and venture into foreign markets. If you apply for EDG, it can help carry some of the financial costs and address the challenges.
Delving into Mergers and Acquisitions (M&A), we can provide an estimation of your company’s current value and develop M&A strategies to cause maximum growth. This includes planning and assessment of potential mergers or acquisitions.
The goal for Pilot Project and Test Bedding is to establish the feasibility of your products in the international market. It is a great way to test out new products that haven’t generated any revenue during the grant application. This allows your company to expand and scale in new markets by establishing a track record.
Projects under Market Access also go through the Standards Adoption process, which intends to help companies receive internationally recognised certifications. This is crucial in established industries and emerging sectors too. Not only will this boost the local and international competitiveness, adopting the relevant standards will give you a wider market access. Additionally, this will increase consumer’s trust in your brand.
Benefits of EDG Funding for Singapore SMEs
1. Develop business strategies
One of the greatest ways SMEs can benefit from EDG is in developing their business strategies. They will advance and reconfigure their current strategies to pave more opportunities and elevate their business. This grant can also help them achieve “Singapore Quality Class” certification, which is highly desirable for any company.
2. New technology
As we have said today, adapting to changes in technology is critical for the survival of a business. Those who are struggling in this aspect can use the EDG to fund new technologies and develop the relevant framework. Use new equipment and efficient workflow to boost output!
3. Understand customers to improve service
Use EDG grant to support company research and gain a deeper understanding of one’s customer profile. This will ensure that you can identify needs and gaps between that and the services you are providing. Take your company to a whole new customer-centric culture. In addition, funds from this government grant will use analytics and process redesign to create a more satisfactory customer experience.
4. Train staff and employee
Companies can use the funding from EDG to train staff in a variety of areas. As those involved in the business acquire new skills, this will naturally increase productivity and output. Overall, SMEs will have a higher probability of scaling up and expanding when the human resource is developing.
How Does the EDG Support You?
Aside from the business practices and expertise, how exactly can the EDG support Singaporean SMEs? The grant will fund costs needed for the project, including any third-party fee, software and technology, as well as internal manpower wages.
Depending on the project category and other terms or requisites, the Enterprise Development Grant will fund up to 70% for SMEs, while non-SMEs can receive 50% of financial support. However, the amounts depend on the specific project category and requisite eligibility T&Cs. Between April and December 2020, the Supplementary Budget 2020 even raised this to 80%!
Also, due to the recent Coronavirus pandemic, business entities who experience major impacts could apply for 90% support level. Of course, this was only valid until the end of 2020. With that said, SMEs can still benefit a lot from EDG!
Who Can Apply for EDG?
The first and most important condition to apply for the EDG is a Singapore-based registration and operation. Any Singaporean business with at least 30% local shareholding is eligible to apply. They should also be financially capable to start and complete the project that is propose.
All the applications are reviewed and managed by Enterprise Singapore, who will consider the project scope, projected results and how competent the service provider is. Companies with a new project that hasn’t been generating revenue are also encouraged to apply.
Furthermore, employers who fall under certain criteria can even apply for extra subsidies. Thanks to the SkillsFuture Enterprise Credits (SFEC) scheme! These employers should never have been qualified for the scheme before and have contributed at least $750 on Skills Development Levy. They should also have employed a minimum of 4 Singapore Citizens or Permanent Residents.
Pre-application for the Enterprise Development Grant
There truly is no better time to apply for EDG funds. But before you do that, there are several things to pay attention to. First, ensure that your company is eligible for the grant. Then, figure out the appropriate project category that you need. Is it Core Capabilities, Innovative Productivity or Market Access?
It’s also possible to get help in scoping your project. There are many consultant and management centers that can help your EDG journey. Remember that this government grant is designed to support brand-new projects. These projects should not be generating revenue during the application!
Don’t forget to set aside some time to research and identify providers for your project. Companies that plan on spending money on consultancy should engage with certified consultants. Others don’t need special certifications, like members who are only offering dedicated functions but not consultancy activities.
Next comes the project proposal, which is arguably the single most crucial aspect of the application process. Enterprise Singapore offers a series of project proposal templates to guide companies throughout their submission. There is even a supporting document checklist to help you keep everything on track.
Aside from that, applicants would need to prepare several projected values relating to their business. For instance, revenue and staff remuneration, as well as depreciation, net operating profit, and how the project will impact or benefit workers.
Application for the Enterprise Development Grant
Are you convinced that an EDG funding is what your company needs right now to level up? Applying has been designed to be as easy as possible. All you need is to set up a CorpPass account and log onto the Business Grants Portal.
Once you submit your application, you will only have to wait for eight to twelve weeks. Enterprise Singapore may reach out through the Business Grants Portal should any clarification is needed. Businesses who are granted the fund will receive a Letter of Offer (LOF). This will state the exact conditions and amount of grant.
Do not forget to acknowledge this letter and accept it before the deadline. This will ensure that your application remains valid and your company can go on to the next step of the process!
All in all, the Enterprise Development Grant is a highly beneficial government grant. It has been designed to support up-and-coming small and medium-sized enterprises seeking to enhance their market authority and expand consumer base. Indeed, there is no reason why a Singaporean SME shouldn’t apply for an EDG at all.
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