Since the merger of IE Singapore and Spring Singapore to become Enterprise Singapore (ESG), there have been some changes in the way the Government supports the grants that are available to help in the growth of SMEs in Singapore. Many SMEs have been asking us what areas of support they may be able to expect from ESG and so, we have shortlisted a few questions we think can help business owners navigate this important area of government support. Astreem works with business owners who seek to improve and grow their businesses in most of the areas supported. We welcome questions about how your business may be able to grow through the specially curated areas of government support that has been crafted by ESG.
What exactly is the Enterprise Singapore EDG grant?
The acronym EDG actually refers to ‘Enterprise Development Grant‘. This is a financial assistance programme, initiative of Singapore government agency – Enterprise Singapore (ESG). It is a program to assist with SME growth and is designed to offer more flexibility and extend more coverage to support our local SMEs.
This grant assistance programme is aimed at helping local SMEs develop and upgrade their organization’s business capabilities under three pillars:
Development of Core Capabilities
The Grants are designed to assist SMEs to develop their Core Capabilities to help prepare for growth and Business transformation by strengthening their business foundations. This can include formulation of growth strategies including corporate driven expansion, Franchise development and Joint venture partnerships. Companies can also look towards development of Business strategies and processes to protect and monetise intellectual property assets as well as optimise their operations.
Another area that is important in the quest to grow your business is to look at better capturing your business’ target audiences and markets by differentiating your brand proposition, and your products and services. In some cases, brand localisation in the targeted market can also be a critical success factor when entering new markets.
Other areas that fall under the Core capabilities development include Financial Management, Human Capital Development and Service Excellence.
Innovation and Productivity
The Innovation and Productivity projects support companies to explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflows and processes. Companies could also tap into Business automation and technologies to make routine tasks more efficient. The successful Implementation of Business Automation can greatly increase productivity and reduce human errors, thereby increasing profitability.
Projects under Market Access support Singapore companies that are willing and ready to venture overseas. Companies can tap into the EDG to help defray some of the costs of expanding into overseas markets especially where Mergers and acquisitions is the growth strategy, developing overseas presence.and developing international standards.
Who Qualifies for the Enterprise Singapore (ESG) EDG government grant?
EDG is only applicable to Small Medium Enterprises (SMEs). Typically, a SME would be eligible as long as they meet the following criteria:
- The company must be registered and operating in Singapore
- Has a minimum of 30% local shareholding
- Is in a financially viable position to start and complete the project
Enterprise Singapore assesses your company’s overall financial performance to ensure that your business can comfortably see the project through and benefit from it as well as the overall productivity of your company. The competency of the selected consultant or service provider is also a key consideration. Ultimately, ESG seeks to support Business owners who clearly understand the scope of the project, why they wish to embark in that area of specific capability improvement or business strategy development projects and how your business will benefit from the projects supported by the government grant.
What does Enterprise Singapore Enterprise Development Grant (EDG) support?
The EDG grant supports up to 70% of qualifying project costs namely third party consultancy fees, software and equipment, and incremental internal manpower cost.
How long is the duration of an Enterprise Development grant (EDG) project?
As EDG project may take between 4 to 12 months to complete. However, it is really subjected to the scale of each project that is undertaken. A typical Franchise Development project by Astreem can take between 4 to 6 months and an International Business expansion project into a specific country may take 3 to 4 Months to complete.