The COVID-19 pandemic has taken a toll on the job market and many businesses. During this crisis, many SMEs are facing challenges to continue their global supply chains and operations; therefore, we are here to introduce you one of the SME grants in Singapore, EDG, which can help many SMEs protect jobs and improve productivity during the crisis.
If you are an Small Medium Enterprise (SME) in Singapore wanting to scale your business but have a tight budget, then you have to know what the Enterprise Development Grant is about.
Table of Contents
- 1 What is the Enterprise Development Grant about?
- 2 Why you should leverage on EDG now (esp before Oct 2021)?
- 3 How to scale your HR functions using EDG?
- 4 Frequently Asked Questions
What is the Enterprise Development Grant about?
The Singapore government funds up to 80% of projects that help you upgrade your business, innovate or venture overseas, under the following three pillars:
- Core Capabilities – Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations. These should go beyond basic functions such as sales and accounting.
- Innovation and Productivity – Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflow and processes. Companies could also tap into automation and technologies to make routine tasks more efficient.
- Market Access – Projects under Market Access support Singapore companies that are willing and ready to venture overseas. You may tap into the EDG to help defray some of the costs of expanding into overseas markets.
Why you should leverage on EDG now (esp before Oct 2021)?
Only for a limited time, as announced at Supplementary Budget 2020, the maximum support level will be raised from the original support level of 70% to 80% from 1 April 2020 to 30 September 2021. That’s right, there is an additional 10% coverage on the qualifying project costs and that alone can save you thousands of dollars!
How to scale your HR functions using EDG?
Scaling up a HR function using the EDG fall largely as a “Human Capital Development” project under the pillar of “Core Capabilities”. The scope of work covered under such project includes diagnosing gaps, developing structures and receiving recommendations for implementation. Hence, when you use an EDG on your HR functions, you should look into having all those scope of work covered
Step 1: Know your company’s pain point
Clarity is power. The more clearly you are able to define your problems, the more obvious and easy the solution becomes.
If you are not clear on what your company’s HR pain point is, consider doing one of the following diagnostic tool:
- [PAID] Human Capital Diagnostic Tool (HCDT) is a diagnostic tool from Institute for Human Resource Professionals (IHRP) to help companies gain valuable insights on their Human Capital Maturity, and assess the company’s state of HR across 11 key human capital process areas. The 3 perspectives of insights that HCDT offers are illustrated on the following diagram (credit to IHRP).
- [FREE for a limited time] Workplace Happiness Survey is an employee experience diagnosis tool that highlights 28 areas for improvement so that the company can pinpoint their resources on what matters most to its employees.
Step 2: Search for a trusted HR Business Partner
Enterprise Singapore has appointed three certification bodies (RMC, PMC and SCMC) through an open call-for-collaboration to develop and run certification programmes for management consultants. These certifications recognise individual who possess adequate know-how, competence, professional and ethical conduct to provide consultancy services.
But, certifications alone is not enough! Here’s what you need to do to know if they are the one for you:
- Talk to them to have a deeper understanding on how they can help you with your problems. You would want a consultant who is willing to tell you the things you need to hear, but may not want to hear, even if doing so means that the consultant may lose the business!
- Check their years of experience. They must have solid experience with creative problem solving skills to deliver innovative outcome aligned with your business strategy.
- Ask yourself how well did they connect with you at a personal level. They need outstanding interpersonal skills to build a trust-based relationship with you such that you would be comfortable revealing the intimate details of your business. Without complete honesty, the consultant will find challenges in his or her effort to help your business.
- Last but not least, review through who their past clients were and what have to say about them.
Step 3: Apply for the grant
The usual process is:
- Discuss about the project with a certified consultant.
- Get the project proposal which outline the project scope from the consulting firms.
- Build up a business case to justify why your company need to leverage on this grant.
- Apply online at Business Grants Portal with your company’s CorpPass and wait about 8 weeks for the application to be processed.
- Companies may be interviewed by ESG prior to project approval and ask for relevant proof.
- Await award notification through the portal with exact grant amount.
- Accept letter of offer and notify project partners.
The grant application process would require a lot of details and figures such as your company’s operating profit, company revenue, profit before tax, staff renumeration and more in the application form, so be prepared!
Alternatively, approach our dedicated team who will help guide you through the process every step of the way if you are embarking on a project with us.
Frequently Asked Questions
How do I know if my company is eligible?
- Have a registered company and operating in Singapore
- Have at least 30% local shareholding
- Be in a financially viable position to start and complete the project.
Who approves the EDG grant?
Applications are reviewed and prossessed by Enterprise Singapore based on the project scope and the project results.
When will EDG end?
As announced on Enterprise Singapore’s website, the ending date of the 80% EDG grant support level will extend its date to 30th September 2021.
What is the maximum grant for EDG?
For eligibled Small and Medium Enterprises (SMEs), the maximum grant support level can be up to 80% on qualifying costs.
How long does a consultancy project normally takes?
Project completion typically ranges from 6 to 9 months.
How can I increase chances of approval for EDG?
Your company can work with experienced consultants to boost your chances of approval for EDG and to make sure that you are on the right track to get your funding approved by Enterprise Singapore.
Align Group has certified consultants to help you navigate the ever-complex grant support ecosystem available in Singapore. By optimising cost-savings with Jobs and Skills Grants, you can focus on growing your business and people with confidence.
About Align Group
In case you are wondering about us, our consultants have Enterprise Singapore recognised certification and are either Practising Management Consultants (PMC) or Registered Management Consultant (RMC). We have also received positive feedback from the Managing Directors of well known SMEs such as Pazzion and Scanteak Singapore by delivering impactful project outcomes! Interested to find out what they say?