How Do Enterprise Development Grants Support Small Businesses?

Enterprise Development Grants (EDGs), which encourage the growth, expansion, and transformation of the local enterprise (both SMEs and non-SMEs), are a good thing. Up to 80% of eligible project costs can be covered with the EDG branding grant, including training, certifications, software, equipment, and incremental manpower costs. Depending on the case, enterprises most affected by COVID-19 may receive a maximum level of support of 90 percent. Various business process improvements are possible in areas like business excellence, service excellence, and productivity. Your business, invention, or international venture can be supported by this grant.

A few of these are: -

• Core Capabilities Improvement that assists businesses in strengthening their business foundations to prepare for growth.

• Innovating and improving productivity to assist organizations in exploring new areas of growth or improving efficiency.

• Businesses in Singapore that are willing to expand abroad will benefit from the Market Access expansion.

What is EDG Support?

• Grant funding may be awarded to qualified project costs including third-party consultancy fees, software, equipment, and internal labor costs

• Based on the Supplementary Budget 2020, maximum support will increase from 80% to 80% starting on April 1, 2020, and ending on December 31, 2020.

• The maximum level of assistance for enterprises most affected by COVID-19 may be increased to 90%, depending upon the case.

Level of EDG Support

• From 1 April 2020 to 31 December 2020, non-SMEs can receive up to 60% of qualified costs.

• Businesses classified as SMEs (small to medium enterprises) have a local ownership percentage of at least 30%, a sales turnover of less than $100 million, and no more than 200 employees.

• Consultant for EDG Grants

• To achieve sustainable growth and business results, you must choose the right management consultant.

• In case your company qualifies for a grant from the EDG Grant for consultancy costs, you will be required to hire a management consultant who is a member of Enterprise Singapore's Certified Quality Initiative (CQI).

Efficiencies

By reviewing and diagnosing your existing processes and creating new and/or improved approaches, you can gain a more insightful understanding of how your business operates. By reviewing and redesigning processes, organizations can optimize resources such as manpower and space, which will lead to increased profits and revenue.

Excellent Business Practices

An organizational review and formulating a strategic development roadmap can help you improve your management processes and systems.

Exceptional customer service

Organizations must meet the demands of their customers. A customer-centric mentality is preferable to the service basics, which are often described as "greet-smile-thank you." By doing so, organizations will be able to understand their customers' buying decisions and needs across all touchpoints.

EDG Grant improvements

Global economic security is threatened by COVID-19. It affects Singapore as well. Many local businesses have been devastated by the virus.

An additional stimulus package, known as the Resilience Budget, was announced by the Singapore government on March 26, 2020. The emergence of stronger enterprises will be facilitated by this package after the recovery of the economy following COVID-19. It is therefore important for businesses to continue using downtime for improvement and transformation.

In light of the current difficult market conditions, the following enhancements have been made to the Enterprise Development Grant (EDG):

• The maximum level of support will go from 70% to 80% between 1 April 2020 and 31 December 2020.

• Support can be increased up to 90% for firms most affected by COVID-19 on a case-by-case basis.

• Eligibility for the EDG Grant

Eligibility for the EDG grant is based on meeting the following criteria:

• Register a business entity and operate in Singapore.

• A minimum of 30% local ownership is required.

• You must be financially able to start and finish the project.

• Applications for EDG grants in Singapore will be evaluated based on the scope of the project, the results, and expertise of the service provider.

• All EDG applications must include, as part of their qualifying requirements, commitments to worker outcomes starting on April 1, 2020. Qualifying project costs, such as third-party consultancy fees and software, can be covered by grants.

• An increase in income, a new job being created, a job redesign, training existing staff, and a job redesign are some examples of worker outcomes.

• Additional funding of 10% is available to unionized businesses and e2i partners in the Labour Movement, subject to NTUC-e2i endorsement.

The Scope of EDG Support

• Grant funds are available for qualified project costs, including third-party consultancy fees, software and equipment, and internal manpower costs.

• The Supplementary Budget 2020 announced that the maximum level of support will increase to 80% starting on April 1, 2020, and ending on December 31, 2020.

• The maximum level of support for enterprises most affected by COVID-19 may be increased to 90%, depending on the case.