Whether you are a start-up company, small and midsize enterprises (SMEs) or an established company, Singapore government grants like the EDG Grant can support your growth plans.
With a range of business grants for Singapore SMEs and Startups made available in 2023, Singapore companies have many government resources to tap on that can support them in taking their next steps to grow. Enterprise Singapore grants help committed companies build capabilities, innovate and expand overseas with EDG Grant.
When Should You Be Considering a Grant for SMEs in Singapore?
Depending on your business goals, once you have grown your business, whether a startup or an SME, in Singapore to a certain size, you need to prepare to expand locally and then overseas to take your business to the next level of growth. When you do start to venture into new larger markets, it’s critical to plan your marketing budgets carefully and to use data to determine where you should be spending your marketing dollars.
Your growth framework needs to be setup and fine tuned locally to use data effectively before you attempt to venture to larger markets. When you do need to cater for huge growth it’s critical to ensure you have the right systems in place that can adapt to the growth opportunities as they happen. You will not have time to react cost effectively if things are not already in place.
To support companies in their various stages with financial assistance, the Singapore Government has made available several grants through Enterprise Singapore, who work with committed companies to build capabilities, innovate and internationalise.
Types of Business Grants Available for SMEs and Startups
Listed below are many of government grants for SMEs and Startups in 2024 available to companies from Enterprise Singapore.
Government SME Grants - A Catalyst for SME Growth
The Singapore government offers various SMEs grants to accelerate local enterprise growth. SMEs can tap on grants for small business Singapore like the Enterprise Development Grant (EDG) – Singapore grant for SMEs and others under Enterprise Singapore.
These government grants for sme provide funding support for critical business functions - from innovation to market access. Read on how an EDG can catalyse your SME’s expansion plans.
Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) supports projects that help upgrade, innovate, grow and transform an SME.
EDG Grant Coverage
- Third-party consultancy fees
- Software and equipment
- Internal manpower cost
Eligibility
- Business entity is registered and operates in Singapore
- Company has at least 30% local equity held directly or indirectly by Singaporean(s)
- Company is financially ready to start and complete the project.
New Update
- Funding of up to 50% of eligible costs for Singapore SMEs
- From 1 April 2023, SMEs can receive up to 50% support for EDG (sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026).
Read more about the EDG Grant
Market Readiness Assistance (MRA) Grant
The Market Readiness Assistance (MRA) grant helps companies expand into new markets overseas by defraying the costs of overseas market promotion, business development and set-up.
MRA Grant Coverage
An enhanced MRA grant cap of up to S$100,000 is extended until 31 March 2025 which includes:
- Overseas market promotion
- Overseas business development
- Overseas market set-up
Eligibility
- Business entity registered and operating in Singapore
- Company has at least 30% local equity held directly or indirectly by Singaporean(s)
- New to target overseas market
- Company has a Group Annual Sales Turnover not exceeding S$100 million OR a Group employment size not exceeding 200 employees
Business Improvement Fund (BIF)
The Business Improvement Grant is offered by the Singapore Tourism Board (STB) to support Singapore-registered businesses in the tourism sector. The grant aims to encourage technology innovation and adoption, redesign of business models and processes to improve productivity and competitiveness.
BIF Grant Coverage
- Technology Adoption in automation, scaling up & new product or service development
- Business Model Redesign including consultancy services, training programs, and other relevant expenses.
Eligibility
- The business must be registered and operating in Singapore.
- The business must be operating in the tourism sector, which includes attractions, cruise, hotels, meetings, incentive travel, conventions, exhibitions (MICE), tourist guides, travel agents, arts, dining, entertainment, and retail.
Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) helps businesses enhance their processes with technology.
It provides financial support for business owners to adopt pre-scoped IT solutions, equipment and consultancy services to improve productivity.
PSG Grant Coverage
- Financial support for consultancy services
- Technology adoption to improve profitability
Eligibility
- Is a business entity registered and operating in Singapore
- Has at least 30% local shareholding
- Company’s Group annual sales turnover should be not more than S$100 million, OR Company's Group employment size should be no more than 200 employees
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
Government Startup Grants - Kickstart Your Journey
Promising startups in Singapore can avail themselves of a suite of attractive government funding support to transform innovative ideas into commercial success stories. Startup SG Founder, Startup SG Tech and Startup SG Accelerator offer holistic assistance across key needs - from prototype development and IP management to talent acquisition and overseas launch.
Tap into these startup grants to accelerate your firm’s growth trajectory during the critical early stages. Expert guidance can help determine the most suitable option based on your startup’s maturity and funding needs. Whether participating in accelerator programmes for mentorship or claiming generous subsidies for product development and internationalisation, these grants equip startups with rocket fuel to advance to the next stage.
Startup SG Founder
The Startup SG Founder (SSGF) programme encourages and supports aspiring first-time entrepreneurs to start their own innovative businesses, by providing mentorship and financial support.
Eligibility
At least 2 SC/PR applicants who
- Are first-time founders
- Are key decision makers
- Are not employed externally
- Hold equity in the company, with a minimum of 30% collectively
The company must
- Not have received funding from another government organisation (for the same business idea)
- Not have received the SSGF grant before
- Have minimum 51% of issued shares are owned by SC/PR
- Be registered as a private limited entity in Singapore for less than 6 months*
- Invest a co-matching amount of S$20,000 as paid-up capital on ACRA
Read more about the Startup SG Founder Grant
Startup SG Tech
The Startup SG Tech grant fast-tracks the development of proprietary technology solutions and catalyses the growth of startups based on proprietary technology and a scalable business model.
Eligibility
- Registered in Singapore within the past 10 years at time of grant application
- At least 30% local shareholdings
- Company is not a subsidiary of a corporate entity at point of incorporation
- Company’s group annual sales turnover is not more than $100 million
- Core R&D activities to be carried out in Singapore
- Main applicant should be undertaking a significant role in the company
Read more about the Startup SG Tech Grant
Startup SG Accelerator
This grant supports startup enablers, such as incubators and accelerators to nurture the development of high potential Singapore-based startups.
Eligibility
- Applicants should be accelerators, incubators or venture builders with a unique value proposition
- Operate in Singapore to support Singapore-based startups
- Have a revenue model that will be sustainable in the long-term
- Have a proven management team with the necessary experience and expertise to groom innovative startups
Read more about the Startup SG Accelerator Grant
Accelerating Growth Through Government Support
SMEs can tap into various government grants to address critical business needs, ranging from fostering innovation to accessing new markets. These grants provide financial assistance for initiatives such as capability development, technology adoption, and market expansion.
Whether an early-stage startup availing Singapore startup grants or a growing SME, various funding schemes enable local enterprises to transform.
SME Grants Singapore – Who Qualifies?
While criteria differs across grants, eligible enterprises generally include:
- Singapore registered entities
- At least 30% local shareholding
- Financially stable with positive net worth
- In operations for one or more years
- Not convicted of prior criminal offences
Government Funding Support Levels
SME funding Singapore support levels differ based on grant type and applicant size:
- SMEs - Up to 50% for Enterprise Development Grant (EDG)
- Startups – Up to 85% through various startup grants
- Non-SMEs – Up to 50% funding
How Can an SME Benefit from Government Business Grants?
The Singapore government grants for SME aims to empower local enterprise growth through technology adoption, market access, capability building, R&D and more.
Some potential benefits for SMEs include:
- Fund business transformation initiatives
- Pursue overseas expansion with reduced risks
- Develop novel solutions through R&D and IP protection
- Drive technology integration and process improvements
- Enhance talent and organisational capabilities
- Obtain expert advisory through grant projects
Unlocking Opportunities with the Enterprise Development Grant (EDG)
With continued enhancements like the SG SME Grant, Singapore business grants catalyse enterprise innovation and global ambition. Tap available government funding schemes to unlock your firm's true potential. Reach out to experts to determine suitable grants and get application support.
Let’s dive deeper into Enterprise Development Grant (EDG) which can be super supportive to grow and transform your Singapore-based company. Due to the broad range of developmental areas, the grant supports projects that help you upgrade your business in various areas, to not only compete more effectively locally but to also venture overseas.
By covering up to 50% of eligible project costs, the EDG serves as a crucial resource for SMEs looking to enhance their competitiveness and seize growth opportunities. It has proven to be the most versatile block of grants in helping some of our clients grow.
Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG), popularly referred to as “the EDG grant” is a funding scheme that supports the development and transformation of enterprises in Singapore. The grant assists enterprises with their business transformation, internationalisation and capability development initiatives.
There are 3 core areas from which the EDG supports companies.
- Core Capabilities
- Innovation and Productivity
- Market Access
Watch our walkthrough guide below to understand more about the EDG grants
Learn more about the Grants via the video with our VP of Advanced Services, Dom
Is Your Company Eligible for the EDG?
There are some criteria that your company needs in order to be eligible to receive the grant:
- That your business has an entity registered and is operating in Singapore.
- The company has at least 30% local (Singapore) shareholding.
- Be in a financially stable so to start and complete the project.
Jump on a call with us for a free consultation, we'll explain further what "financially stable" means then
Just meeting these criteria does not mean that you will receive the grant. Each application will be assessed by Enterprise Singapore based on the project scope, project outcomes and the competency of the chosen service provider.
It’s really important that your company is financially stable, and has a road to growth that looks realistic. The EDG is not designed to fund companies that don’t look viable. Ideally a company has been in business for a few years, has a number of local employees, and has potential to grow even more, not just financially but ideally hire new employees.
If you are a start up that has been around for a year or two and is well funded, and is in a high growth industry, then it is also worth applying.
Is Your Project Eligible?
When applying for a grant for a specific project, that project should be viable for the company, even if you don’t receive the grant. It’s important to note that the EDG only supports new projects that have not been started, and are not generating any revenue at the point of application. This means no payment to a third-party vendor, or even an existing signed contractual agreement to a third-party who is a part of the application.
What Can I Use the EDG for?
The EDG can be used to fund a wide range of activities that can help SMEs upgrade, innovate, grow and transform their business. These activities include:
- Training and upskilling of employees
- Acquisition of new technologies
- Market research and business development
- Export expansion
- Productivity improvement
- Environmental sustainability
What Level of Funding Can You Expect to Receive?
EDG provides funding support of up to 70% for Small and Medium Enterprises (SMEs) and up to 50% for Non-SMEs for a wide range of projects. These include projects that facilitate business transformation, adoption of new technology and processes, as well as enhance enterprise capabilities in the areas of human capital, productivity, financial and management control.
This is on a case-by-case basis, we have no affiliation to ESG but from our experience working with our past clients, the average grant quantum for EDG projects varies from S$50,0000 to S$200,000 per project. The amount of grant that you can receive will depend on the nature and scope of your project. We advise you to explore the available EDG grants directly from Enterprise Singapore's main website.
What Documents Do You Need to Submit for the EDG Application?
Once you have confirmed that you are eligible to apply for the EDG grant, you will need to prepare the following necessary documents for submission.
- A project proposal in the required format
- Your company’s latest ACRA information (not more than six months old)
- Your company’s audited financial statements
- A quotation for the project from the chosen vendor
- Relevant consultants’ certification
Once you have all the necessary documents prepared, you can submit them via the Business Grants Portal.
How Long Will the Grant Application Process Take?
Your grant application submission will usually take eight to twelve weeks from the time you submit your application, assuming there are no delays, requiring further clarification on certain documents.
Your company will receive a Letter of Offer (LOF) listing the conditions of support and the amount of grant awarded, if you are awarded the grant. It’s important to monitor your email account (and spam folders) for receipt of the Letter of Offer. You will need to acknowledge receipt and accept the LOF within the timeline indicated, otherwise the application would be considered invalid.
What Support is Available for SMEs to Use the EDG?
ESG offers a range of support to help SMEs use the EDG. This support includes:
- Pre-application advisory
- Grant writing assistance
- Post-grant monitoring and evaluation
The EDG is a valuable grant that can help SMEs upgrade, innovate, grow and transform their business. The updates to the EDG scheme in 2023 make the grant more accessible and beneficial for SMEs. If you are an SME in Singapore, I encourage you to apply for the EDG.
When Can You Claim Back Your Money Spent on the Project?
Upon project completion, the EDG documentation has to be submitted directly on the Business Grants Portal for final verification. After receiving the project report as well as the audit report from the Enterprise Singapore auditor, Enterprise Singapore will proceed to process the grant disbursement. The funds are usually disbursed within a timeframe of 6 to 8 weeks to your designated bank account.
Below is an illustration for you to understand the verification process post-submission. Support does get rather slow and draggy if you need your preliminary questions solved. Check in with our team and we'd be more than happy to help you.
Navigate Your growth trajectory with Devhaus
While there are many grant options and processes to follow in order to get a grant, the outcomes from a grant supported project can provide significant value for companies, considering the amount of value typically generated for the actual dollar outlay by companies.
Do reach out to someone who can support your journey of growth, and have your company and project reviewed to determine which grant would be best for you and how long it would take to deliver.
If you're keen to push the growth of your business further this year in 2024 - jump on a call and we'll tailor the needs of your business for you! Here are the steps:
- Submit your enquiry here
- Check your email for the call booking link with our team leaders
- We'll walk you through our free consultation and even give you a free audit of your current tech stack and website to help you improve your digital performance globally!
Can't wait to catch you then!
