Setting up one’s own business can indeed be thrilling but laborious, especially in terms of its funding. To a large portion of entrepreneurs, the right amount of funds is what will make a difference in how fast or far their venture will grow. For startups in Singapore, a sure source of funding would have to be the Enterprise Development Grant (EDG). The purpose of this grant is to support businesses that are trying to transform and innovate their elements to surge in the competitive market. The following overview of everything you need to know about EDG grants will conventionally form the premise of what benefits will accrue to your startup.

About the EDG Grant

The EDG, a government funding scheme issued by Enterprise Singapore, aims to enable companies to upgrade their business capabilities, particularly in innovation. Specifically, this grant is accessible to local companies across various industries. Furthermore, EDG provides financial support to help companies undertake projects in innovation, productivity improvement, and expansion into new markets. Consequently, EDG serves as a valuable tool for start-ups to achieve scale and make an impact in their respective industries.

Importance of the EDG Grant

One of the significant challenges that startups often face is funding. However, the EDG Grant reduces this barrier, providing them with the accessibility needed to grow their businesses. Specifically, with proper utilisation, these funds can help in improving processes and developing new products or expanding businesses to new markets. In essence, this grant acts as a booster for startups, ultimately helping these ideas transition from concept into reality.

EDG Grant Eligibility

The initial process for obtaining a grant involves determining whether or not your startup qualifies for the grant. For a firm to be eligible for the grant, it needs to satisfy the following criteria:

• Be registered and operating in Singapore.
• Have at least 30% local shareholding.
• Be in a financially viable position to undertake the supported project.

This eligibility is what makes EDG attractive to any of the local start-ups. Businesses with solid foundations can venture into capital-intensive businesses while justifying the expenses spent.

What Can EDG Grant Be Used For?

EDG grant is focused on the following three very critical and crucial pillars intrinsic for a start-up’s success.

• Core Capabilities

This pillar involves building internal strengths in the development of strategies, human capital development, financial management, and branding. These are the core areas that every startup has to invest in to provide a strong basis for growth.

• Innovations and Productivity

Furthermore, the second pillar focuses on projects related to innovation or productivity enhancement. Specifically, it may involve adapting technology to streamline processes, automate production, or develop new products. As a result, these initiatives will help a business stand out from its competitors.

• Market Access

Lastly, there is the grant that enables startups to go international. It deals with market research, expansion strategies, and business collaboration.

How to Apply for the EDG Grant

In fact, application for the grant requires planning. These are the steps that one should follow to have a good chance of approval:

• Identify Your Needs

Start by identifying what exactly your startup needs. Is it innovation, improving productivity, or increasing the market? Knowing this will help you to focus on your project and align it according to the requirements of the grant.

• Develop a Strong Proposal

Your proposal should implicitly mention the project objectives, the goals of the project, and how it would affect your business. In that regard, it is highly crucial to bring into light the intention of the fund and the expected outcome. Justification of the project with respect to the long-term growth of your startup will help you win approval.

• Submit Your Application via Business Grants Portal

Rather, once you have your proposal ready, you can make the application through the Business Grants Portal; of course, after attaching all the necessary documents, ensuring the application is complete

• Approval

After the submission, your application will be reviewed by Enterprise Singapore. The time to review the process may take any time from six to eight weeks depending on the complexity of your project. During this period, you should be patient and prepared to submit additional information if needed.

• Implementation of Project

Upon approval of your application, you can begin your project. You must keep track of how you are doing to ensure you attain the milestones that you stated during the proposal. In some cases, you may be required to report periodically to ascertain proper use of the grant.

What Are the EDG Grant Benefits

The grant covers everything from financial aid to expert advice, which can help startups scale their operation successfully in Singapore’s competitive business climate. EDG mentions some of its key benefits below:

• Financial Incentives Towards Growth

The grant covers the major portion of the project cost for a startup scaling up its operation without being stressed about any shortcomings of funds. 

• Access to Expert Advice

Through the grant, they can get access to professional advice and resources, which greatly facilitate the planning and smooth execution of projects.

• Capability Development

Through improving capabilities, increasing productivity, and expanding market reach, the EDG grant could turn an enterprise more competitive in its sector.

• Lower Risk

The grant financing gives businesses a reduced risk of scaling a business. Startups, with the help of this government-backed grant, can confidently explore new ideas and strategies without fearing financial ruin.

Common Issues in Applying for EDG Grant

While this grant provides great opportunities for various startups, entrepreneurs can often go through certain challenges during the application process. Some of these are as follows:

• Developing a Competent Application

Writing an offer that articulates the benefits of your project in terms of the grant’s objective can be challenging, especially for first-time applicants.

• How Exhaustive the Application Procedure Is

The procedure alone can be very bulky and extended and consumes a lot of time since you have to strategize on how you will find information and complete the relevant documents needed.

• Project Milestones

This implies that once awarded a grant, the start-ups are obliged to meet all project milestones that they had indicated in their proposal. Failure to do this might result in penalties or complete withdrawal of funding.

Conclusion

Getting funds for entrepreneurial activity is one of the most essential parts of building a successful business. The EDG, in particular, offers a very good avenue for startups in Singapore to resource acquisition while innovating, growing, and expanding their businesses. A carefully prepared proposal and alignment with objectives can help a startup unlock significant financial support through a grant if the requirements are well understood.