Recognising that lack of adequate funding is often the most common stumbling block for start-ups, governments around the world offer numerous financing programmes to help businesses start up and grow their operations. These include low-interest loans, venture capitals and even scientific and economic development grants. Different countries offer different different schemes. In Singapore, the government has several initiatives to enable start-ups to gain access to funding.
These include cash grants, government backed equity financing schemes, business incubator schemes, debt financing schemes, and tax incentives. One of the advantages of starting-up in a country like Singapore is that aspiring entrepreneurs can gain access to business grants disbursed by different government agencies to fund start-ups across various industries.
However, each grant has its set of terms and conditions including qualifying criteria and disbursement methods and typically, grants only cover a percentage of the finance needed. Most grants for start-ups are designed to encourage investment in innovation, research and development, and social causes.
Global Company Partnership
Among the grants offered in Singapore are International Enterprise (IE) Singapore’s Global Company Partnership (GCP) grant which is designed to help take your business global by providing assistance in the areas of building internal capabilities, manpower development and gaining market access.
This grant is available to all Singapore-based businesses that have their global headquarters anchored in Singapore, an annual turnover of at least S$500,000 in the latest audited report and a minimum paid-up capital of S$50,000. IE Singapore is a government agency spearheading the overseas growth of Singapore-based companies and promoting international trade.
In 2014, IE Singapore assisted over 28,000 Singapore-based companies in their internationalisation drive, while 8.000 companies benefitted from its financing programmes. Under the GCP programme, companies can receive customised support in four key areas, which are capability building, market access, manpower development and access to financing. For capability building, the GCP porgamme helps build capabilities for internationalisation in areas such as branding, design, internationalisation strategy and intellectual property management.
Companies are also assisted with talent attraction and talent development, as well as develop human resource strategies to support internationalisation. Under market access, the GCP programme assist companies to obtain information, develop strategies and access global business opportunities overseas, while also assisting them to enhance their access to capital required for business expansion via financing schemes such as the Internationalisation Finance Scheme (IFS) and Loan Insurance Scheme (LIS).
Market Readiness Assistance
The IE’s Market Readiness Assistant (MRA) meanwhile helps you defray costs up to 70 per cent when you want to bring your business overseas for the first time. These costs cover activities such as overseas market set-ups, identification of business partners, and overseas market promotion. The MRA is basically a broad-based programme designed to provide basic know-how for companies new to internationalisation.
IE’s MRA grant will support pre-scoped professional services for market assessment, market entry and business restructuring through internationalisation. Qualifying companies may obtain up to 70% funding from IE on qualifying activities, capped at S$20,000 per company per year.
To qualify for the MRA grant, your company must be headquartered in Singapore and have an annual turnover of more than S$100 million.
Land Productivity Grant
As for companies interested to optimise land use through domestic or overseas relocation, those eligible can opt for the Land Productivity Grant (LPG). Singapore based local and foreign enterprises can apply for a LPG as long as the company is physically present and registered in Singapore and is currently situated on industrial land.
The LPG will assist companies by defraying part of the initial cost arising from the relocation. The supportable cost components would be one-time, non-capital expenses related to the relocation. Funding support for approved projects can be between 10% and 70% of the qualifying costs, while the funding support level will be dependent on the amount of land freed up and the remaining lease term. The qualifying costs include relocation costs, third party consultancy fees for market and location feasibility studies and work flow redesign.
Applications will be further assessed by the Singapore Economic Development Board or SPRING – an agency under the Ministry of Trade and Industry.
Creating a Rapidly Growing and Thriving Business Hub
Applying for a grant successfully may not be as easy as it seems and often requires the help of professionals. The rules change very often and the criteria for different states may also vary.
This is the reason it would be best for business owners to seek the help of professionals like those at Venture-overseas.com on the relevant procedures to be followed. Launched with a mission to help businesses all over the world expand their company operations overseas, Venture-overseas.com is a leading, trusted and registered company headquartered in Singapore.
The goal of those at Venture-overseas.com is to create a rapidly growing and thriving business hub in the world with leading traders and globally competitive companies. Whether you want to expand your business operations in Asia or cater to customers in Africa, North America or Australia, Venture-overseas.com is dedicated to helping businesses go international. So, if you want to flourish internationally and take your business to new heights, make an appointment with those in the know. Venture-overseas.com is focused on helping entrepreneurs at all business stages including start-ups, SMEs and large local giants to take their business to the next level and become globally competitive by establishing a strong foothold in new territories.
Talk to the experts at Venture-overseas on how best you can benefit from the numerous grants offered in Singapore and how to ensure a successful application.
For more information about these Finances And Grants in Singapore or consultancy services, get in touch with us today. We can provide you with end to end support and services, helping you make an informed grant support program choice and complete the paperwork to ensure grant approval.