by SGInteractiveEstimated reading time: 4 minute(s)
Here is some list of grants which are useful for the Business Growth of SMEs.
As we already know that digital innovation has become grace for the current economy of every country to date. Due to this most of the businesses are incorporating digital technology or in digital infrastructures.
As there is a high demand for digital tools and investing in these tools is not that easy as it seems as they are purchased at a higher price. This creates barriers in the process of digitization. Due to this, there is a lack of resources and more financing options are up on their list.
Yet, a recent study conducted this year by a global insurer, QBE, has shown that a significant majority of local SMEs aren’t quite ready to do so just yet, citing “sufficient investment and familiarity with other markets” as their biggest concern.
Here are 6 useful Government Grants and Schemes for SMEs in 2020:-
1. Capabilities Development Grant (CDG)
To summarize this, the Capabilities Development Grant (CDG) is a financial assistance program that is designed to assist SMEs to grow and enhance their business in 10 key areas:
Brand and marketing strategy development;
Financial management;
Technology innovation;
Business excellence;
Business strategy development;
Enhancing quality and standards;
Human capital development;
Intellectual property and franchising;
Productivity improvement;
Service excellence.
The Capabilities Development Grant (CDG) grant funds up to 70% of the qualitative project costs.
Application Process:
To implement for the CDG, businesses will first have to access the Business Grants Portal. Projects that ask for grant support of S$30,000 or less, will not require businesses to compose lengthy project proposals but rather, simply fill in the online application questionnaire. A Capability Development Grant(CDG) Application will have a turnaround time of 4 to 6 weeks.
2. Market Readiness Assistance (MRA) Grant
To summarize this, The Market Readiness Assistance (MRA) grant, offered by IE Singapore, supports Singaporean SMEs who have plans to take their business overseas for the first time and require financial support to assess the market before jumping straight in.
Key areas that are supported by the Market Readiness Assistance (MRA) include:
Market Entry;
Business Matching;
Overseas Marketing and PR Activities;
Participation in Overseas Trade markets that are not supported by the International Marketing Activities Programme (iMAP). To review if the Overseas Trade Fairs are supported by IMAP, click here.
*Take note that “Overseas Marketing and PR Activities” does not add Online Marketing activities anymore.*
Application Process:
To apply for the MRA, companies will first have to access the Business Grants Portal and fill in the required details of each project to do so. An MRA Application will have a turnaround time of approximately 1.5 months.
3. Global Company Partnership (GCP) Grant
To summarize this, The Global Company Partnership (GCP) grant, offered by IE Singapore, supports Singaporean SMEs who have plans to further their business growth through expansion overseas. The key differentiation between the MRA and GCP grants is that the GCP applies to businesses that already have business operations overseas as well. Key areas that are supported by the Global Company Partnership (GCP) include:
Capability Building;
Enhancing market presence in all markets;
Entry into New Markets;
Developing International HR strategies;
Talent Recruitment;
Overseas market attachments for employees who are Singaporean/PR.
Application Process:
To apply for the GCP, businesses will first have to entrance the Business Grants Portal and fill in the required details of each project to do so. A GCP Application will have a turnaround time of nearby 2-3 months.
4. SME ‘Go Digital’ Program
To summarize this, The SME ‘Go Digital’ Program by IMDA, which was announced in last year’s Budget, is aimed at keeping SMEs up to speed with the pace of technological change in the digital economy.
Application Process:
With the recent statement made of integrating the SME ‘Go Digital’ Program as part of the Productivity Solutions Grant (PSG), businesses can apply for funding of pre-approved solutions through the Business Grants Portal, Powerful as of 1st April this year.
5. Enterprise Development Grant (EDG) *new*
To summarize this, For businesses that require more holistic and customized support for innovation and internationalization, the Government will offer a new Enterprise Development Grant (EDG) from the marge of two current grants, CDG and GCP, run by Spring Singapore and International Enterprise (IE) Singapore respectively. It will be run by Enterprise Singapore the new agency emerging from the marriage of Spring and IE Singapore.
Application Process:
The application process for the EDG is similar to that of other grants listed here. To apply for the EDG, businesses will first have to access the Business Grants Portal and fill in the required details of each project to do so.
6. Productivity Solutions Grant (PSG) *new*
To summarize this, Announced in the Budget this year, the Productivity Solutions Grant (PSG), as the name suggests, aims to be the one-stop grant for businesses to access a wider range of productivity solutions for purpose of business upgrading, as part of the government’s aim to streamline existing productivity schemes by different agencies. SMEs can expect to earn up to 70% funding for relevant activities.
Application Process:
As the Productivity Solutions Grant (PSG) stands to be effective only as of 1st April this year, more details will be released during MTI’s Committee of Supply (COS) in March 2018. To apply for the Productivity Solutions Grant (PSG), businesses will most likely have to access the Business Grants Portal to do so.