- The Enterprise Development Grant (EDG)
- What is Innovation?
- The Three Pillars of the Enterprise Development Grants
- How does WMS fit into the Enterprise Development Grant
The Enterprise Development Grant (EDG)
The Enterprise Development Grant launched back in 2018. It replaced the CDG. Since then, it has helped over 11,450 enterprises. EDG offers financial help to certain businesses. However, they focus on specific target areas to grant funding. This includes helping Singapore companies grow and transform. Consequently, part of the change may be innovation. There is also a list of requirements and application forms on the website. The applicants must meet all requirements to be considered for the grant.
The CDG used to provide 70% funding for all qualifying projects. Now, the Enterprise Development Grant allows up to 80% support level. During the COVID-19 pandemic, this went higher. Depending on the case, some companies may get up to 90% funding for their projects. This option is available until the end of December 2020.
What is Innovation?
Creativity is thinking up new things. Meanwhile, innovation turns them into new practices. As a result, creativity and innovation go hand in hand. Innovation is important in any business. It aims to put in place new ideas for the benefit of the enterprise. Firstly, innovation always improves a product, service or operation. It also helps you meet the needs of your consumers in a more efficient way. Moreover, it helps your company grow. Technology changes the way we live and how we do business. The need to innovate challenges people to step out of their comfort zone. This is what the Enterprise Development Grant encourages.
- Check if you qualify for the Enterprise Development Grant (EDG). You need to be registered and operate in Singapore.
- Have a minimum of 30% local shareholding.
- Be in a financially viable position to start and complete the project.
- Identify the key project category you wish to apply for.
- Identify suitable providers to support your project.
- The EDG only supports projects that are new, have not commenced and not generating any revenue at the point of the grant application.
- Prepare the project proposal.
- Prepare the necessary documents. Click here for a complete list.
The Three Pillars of the Enterprise Development Grants
The three pillars of EDG determine which areas are eligible for the grant. It discusses the type of projects and the goals a company should have. Certainly, if the goals match the pillars then you can apply for the grant. But, they also consider other factors. For example, they look at the company’s financial performance. Further, take note of the application procedures and requirements for the grant.
Core capabilities focus on reinforcing the foundations of your business. Like a building, a business will crumble if the foundations are weak. Before transforming a business, the EDG also seeks to strengthen them in:
- Business Strategy Development
- Financial Management
- Human Capital Development
- Service Excellence
- Strategic Brand and Marketing Development
Firstly, there is business strategy development. This refers to making changes in business strategy. As a result, these changes accommodate the shift the company wants. Secondly, financial management focuses on financial performance. With good finances, a company moves forward with implementing changes. In addition, there is also human capital development. This focuses on developing HR to support growth and business strategies. Service Excellence and Marketing Development focus on customers. That is, service excellence understands the needs of the customers. It also looks into the decision-making process of consumers. Similarly, marketing development helps you capture your target market.
These are some key aspects of business foundations. Projects related to these are eligible for the EDG.
Innovation and Production
Under innovation, the goals focus on exploring new ideas. So, the possible projects here include ways of improving efficiency. Further, it could include the adoption of new technology. In this way, it also relates to redesigning the flow of the business. The following solutions help do this:
- Process Redesign
- Product Development
Automation is the use of technology to track operations. There are many options for implementing this in your enterprise. For instance, various systems exist with specific purposes. These systems automate different tasks. Not only is this innovative, but it also increases warehouse efficiency. Subsequently, this leads to a bigger profit. Process redesign is important in introducing new technology. It takes a critical look at the existing processes. Then, it finds ways to improve these processes. It’s in finding improvements that automation comes into place. Finally, there is also the option of applying for product development. The enterprise development grant also helps develop new products. Usually, these are products with innovative technology.
Market access provides aid to those who want to expand overseas. EDG supports companies wanting to expand their business outside Singapore. To do an expansion, EDG offers help in the following areas:
- Mergers and Acquisitions (M&A)
- Overseas Marketing Presence (OMP)
- Pilot Project and Test Bedding
- Standards Adoption
EDG encourages presence in a global market. Even standards adoption focuses on adopting global standards. M&A helps a company grow by merging with or acquiring other businesses. EDG helps businesses plan and assess possible mergers. Then, it also helps the company adjust. Similarly, OMP sets up a marketing presence overseas. This brings you into the global market without establishing an office. Further, the Pilot Project explores new locations or products markets. Therefore, this helps build your track record.
How does WMS fit into the Enterprise Development Grant?
As mentioned, the EDG supports projects related to automation. Integrating a WMS is the first step in automating your business. A WMS contains different modules that increase warehouse efficiency. As a result, it caters to anything from finances to inventory. Not only does automation increase throughput, but it also lessens labour costs. Above all, it allows staff to focus on more complicated matters.
The enterprise development grant exists to help with these needs. So it supports the adoption of hardware and software solutions. Hardware refers to equipment used for the smooth operation of a system. In the event you need to buy machinery for automation, EDG covers this. Further, it also helps businesses with system integration.
Meanwhile, the goal of redesign centres on reviewing existing processes. Then, this becomes the basis for future improvements. In short, process redesign and automation go hand in hand. Certainly, any process improves through automation. Automation also works for transport and measurements. Conveyor belts and parcel scanning systems exist to make things easier. Thus, automation supports process redesign.
The EDG encourages these types of innovations to existing for businesses. It not only makes things easier, it also increases profit. Likewise, the EDG helps an enterprise buy machinery. If the machinery is important for improvement, EDG is available.
To sum up, there are many concerns before adopting an automated system. The enterprise development grant removes the worry of finances. Learn more about applying for the EDG. Contact us at Qbasis today!