Singaporean businesses aiming to grow and innovate have two key grant options: the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG). Both grants, offered by Enterprise Singapore, support digital transformation and business growth but cater to different needs and project scopes.
This article highlights the EDG grant application‘s purpose, eligibility, requirements, and processes to help you make an informed choice.
What is the PSG Grant?
The Productivity Solutions Grant (PSG) helps businesses adopt pre-approved digital solutions to enhance productivity. It is particularly suited for small and medium enterprises (SMEs) at the start of their digital transformation journey.
Key Points:
- Covers up to 80% of qualifying costs.
- Supports pre-approved solutions, including software for inventory management, accounting, and human resources.
- Designed for SMEs looking to implement specific technology upgrades.
What is the EDG Grant?
The Enterprise Development Grant (EDG) is broader, supporting businesses undertaking significant transformation projects. It focuses on innovation, capability building, and market expansion, catering to companies aiming for long-term growth.
Key Points:
- Covers up to 70% of project costs, depending on the scope.
- Funds custom digital transformation projects, process redesign, and market expansion efforts.
- Open to businesses of all sizes pursuing impactful growth initiatives.
Main Differences Between EDG and PSG Grants
Here is a comparison of the two grants to highlight their key distinctions:
1. Scope of Projects:
- PSG: Limited to pre-approved solutions; ideal for specific tech upgrades.
- EDG: Broader in scope, accommodating tailored projects and complex transformations.
2. Funding Coverage:
- PSG: Covers up to 80% of costs with capped funding for specific solutions.
- EDG: Covers up to 70% of costs with flexible funding based on project size and impact.
3. Project Requirements:
- PSG: Requires selection from a pre-approved list of solutions.
- EDG: Allows businesses to propose unique projects tailored to their needs.
4. Eligibility:
- PSG: Primarily targets SMEs.
- EDG: Open to businesses of all sizes.
Eligibility and Requirements
EDG Grant Eligibility:
For the EDG grant eligibility, businesses must:
- Be registered and operate in Singapore.
- Have at least 30% local ownership.
- Demonstrate financial viability.
EDG Grant Requirements:
- Projects must focus on transformation through innovation, expansion, or capability building.
- Applicants need to align with EDG grant requirements by drafting a detailed project proposal outlining goals, implementation plans, and expected outcomes.
- Applications are submitted through Enterprise Singapore’s portal, and businesses may benefit from consulting with approved advisors.
PSG Grant Eligibility
To qualify, businesses must:
- Be registered and operate in Singapore.
- Have at least 30% local shareholding.
- Focus on specific productivity or tech solutions.
PSG Grant Requirements:
- Projects must align with pre-approved solutions listed by Enterprise Singapore.
- Costs covered are limited to the selected digital tools.
Which Grant Should You Choose?
The choice depends on your business goals:
- PSG Grant: Ideal for SMEs in the early stages of digital transformation, focusing on productivity through specific, pre-approved solutions.
- EDG Grant: Better for businesses aiming for broader, long-term growth, including innovation, market expansion, or complex transformation projects.
Benefits of PSG and EDG Grants
Both grants provide significant support for businesses:
- Financial Assistance: Reduce the costs of digital transformation and innovation.
- Access to Expertise: Work with approved consultants for effective implementation.
- Competitive Advantage: Enhance productivity, efficiency, and scalability.
Key Takeaways
- PSG Grant: Best for specific, smaller-scale digital solutions.
- EDG Grant: Suitable for transformative, larger-scale projects aiming for long-term growth and innovation.
Review your application on the Enterprise Singapore website to ensure your application aligns with your chosen grant. Selecting the right grant can propel your business toward greater efficiency and success.
