The Enterprise Development Grant (EDG) was officially launched on 25th October 2018. It is designed to help Singaporean companies strengthen their business practices, grow and transform their businesses to adapt to global changes in the market.
Read on to learn more about what EDG is, who is eligible to apply and how to apply.
Supportable Items and Activities Under EDG
Strengthening the core capabilities of your business equips you with the ability to adapt to rapid growth and transformation. The following aspects are covered.
Objective: To improve or redesign business strategies
- Development of strategies to maximise opportunities and boost competitiveness
- Optimisation of research and development operations
- Improvement of management systems based on Business Excellence Framework to achieve “Singapore Quality Class” certification
Objective: To improve financial management strategies
- Establishment of plans to improve finance-related areas such as investment
- Analysis of risk exposure and implementation of risk management process
Objective: To support human resource (HR) team
- HR management and recruitment
- Compensation and benefits
- Employee skills training and development
Objective: To improve customer service
- Analysis of customer needs and decision-making process
- Implementation of research and revamping service process to improve customer experience
Objective: To boost company branding and marketing via differentiation of products and services
- Creation of brand strategy that focuses on unique selling point to attract customers
- Development of marketing and communications plan
Innovation and Productivity
Innovation and productivity involves assessing and upgrading workflow processes to boost efficiency. For example, businesses can automate their processes by using technologies.
Objective: To move towards automation and usage of technology
- Development of hardware and software solutions, involving machinery and systems integration
- Staff training to implement solutions
Objective: To evaluate and restructure current workflow processes before automation
- Examine the incorporation of technology to automate processes
- Development of comprehensive timeline to guide actions to achieve automation
Objective: To invent technology and products for commercialisation purposes
- Market viability assessment
- Making of prototype and production of small batch
- Crafting of commercialisation plan
Market access encourages expanding into overseas markets to broaden the reach and potential of your business. EDG covers part of the cost for the following items.
Objective: To prepare for and evaluating potential M&A
- Development and implementation of M&A procedures
- Assessment of target for acquisition in areas such as financial and legal
- Generation of change management plan to promote seamless integration
Objective: To build OMP to achieve optimal business development
Objective: To prove feasibility of product to aid international expansion
- Development of material to exhibit usability and effectiveness of product or service
Objective: To achieve internationally-recognised standards and certifications
*Does not cover basic standards, i.e. ISO 9001, ISO 14001,OHSAS 18001, SS 506, and ISO 45001
EDG Eligibility: Who can apply?
You are eligible to apply for the EDG if:
- Your company is registered and operating in Singapore
- You have at least 30% of local shareholding
- Your company is financially able to execute and complete the project
- Your project is new, i.e. no contracts have been signed and it is not generating any revenue yet
All applications will be assessed by Enterprise Singapore depending on the nature of project, intended results, and proficiency of project management consultants.
Note: As of 1 April 2020, EDG applications will be assessed for their commitments to worker outcomes as well.
Also, unionised companies and e2i partners under the Labour Movement will be qualified to receive an additional 10% funding, dependent on NTUC-e2i’s endorsement.
EDG Application: How to apply?
Before you apply for EDG,
- Check whether you qualify for the grant (refer to the previous section).
- Identify the project category you are applying for – core capabilities, innovative productivity or market access.
Refer to the category details in the first section of our article to determine which category your project belongs to.
- Contact qualified providers to guide you through your project.
You can choose to engage management consultants with Enterprise Singapore-recognised certification or Astreem consulting services.
- Do up the project proposal.
Refer to the proposal templates available to prepare your proposal.
- Core Capabilities Proposal Template
- Innovation Productivity Proposal Template
- Market Access Proposal Template
- Prepare the relevant documents.
- ACRA information
- Audited financial statements
- Relevant proof of quotation or proposal
- Management consultancy scopes
- Relevant consultants’ certification
Additionally, refer to this EDG application checklist for the other documents you need to prepare.
- Set up a CorpPass account (if your company doesn’t have one)
The last step is to submit your EDG grant application.
Frequently Asked Questions about EDG
Can projects with both domestic and overseas items be supported under EDG?
EDG supports projects carried out locally and it also aids companies in expanding overseas.
How much grant can my business receive under EDG?
From now till 2023, SMEs can receive up to 70% project funding, while non-SMEs can receive up to 50%.
Qualified project costs include third-party consultancy fees, software and equipment, and incremental internal manpower cost.
How long is the duration of an EDG funded project?
Projects have to be completed within 12 – 18 months upon successful grant application. Note that OMP projects must be completed within 12 months.
EDG projects typically take between 4 – 12 months to complete, depending on the scale of each project that is undertaken.
What is the difference between EDG, Productivity Solutions Grant (PSG) and Market Readiness Assistance (MRA) Grant?
The PSG and MRA grant support the initial adoption stage of
- incorporating technology to strengthen business processes and
- bringing your business overseas respectively.
MRA will continue funding up to 70% for qualifying activities till 31 March 2020.
Subsequently, the EDG comes in to support your business growth and transformation to enhance adaptability.
What is the difference between EDG, Capability Development Grant (CDG) and Global Company Partnership (GCP)?
Previously, the CDG only offers funding for core capability development and the GCP assists companies to expand internationally. These grants have been phased out and replaced by EDG.
As an improved grant, the EDG offers more holistic funding coverage as it aids companies in developing 3 areas:
- Core Capabilities,
- Innovation and Productivity, and
- Market Access.
Will I be affected if I have an existing project under CDG/GCP?
You will not be affected if you have an existing project under CDG/GCP. After your project is completed, follow these instructions to submit claims.
Can I try applying for EDG if my CDG/GCP application was rejected previously?
Yes. Before applying, you may want to examine why the previous applicated was rejected. You are advised to consult any of the SME centres or our Astreem team for guidance.
What are the other programmes/grants designed for SMEs?
For businesses seeking to improve core capabilities, the government has launched the Enterprise Transform package that includes leadership transformation.
The EDG is also under this package.
This one-year programme is designed to support business leaders of promising SMEs in achieving the next phase of growth through
- structured modular training in business growth capabilities and
- business coaching in developing business growth plans.
It is delivered by a network of partners including Institutes of Higher Learning (IHLs), financial institutions and industry experts.
To help drive growth and sustainability, the government has designed the Enterprise Grow package that includes the launch of:
SMEs can get access to more straightforward and better processes when applying for licenses, permits and certificates. All G2B transactions have been digitalised through the GoBusiness licensing portal.
This programme has been expanded to drive greater adoption of digital technology with 3 simple steps.
- Assess your business’s digital readiness using the Industry Digital Plan for your sector.
- Adopt pre-approved solutions with grant support.
- Contact the nearest SME Centre for assistance.
Solutions offered are sector-specific that cut across different areas, such as customer management, data analytics, financial management and inventory tracking.