Maximising Business Growth with the Enterprise Development Grant (EDG): A Strategic Guide for Singapore SMEs

In today’s competitive economy, small and medium enterprises (SMEs) in Singapore must adapt swiftly, innovate continuously, and scale sustainably. Fortunately, the Singapore government provides substantial support through the Enterprise Development Grant (EDG). This strategic funding scheme empowers businesses to transform their operations, enhance capabilities, and explore international markets.

In this article, we’ll explore how your SME can take full advantage of the EDG grant—from understanding its purpose to developing a winning application strategy and ensuring successful project execution.

1. What is the Enterprise Development Grant (EDG)?

The EDG is a government funding initiative administered by Enterprise Singapore. It was introduced in 2018 to merge the Capability Development Grant (CDG) and Global Company Partnership (GCP) grant, creating a comprehensive platform to support SMEs across their growth journeys.

The EDG focuses on three pillars:

• Core Capabilities: Strengthening foundational aspects of the business such as branding, financial management, and service excellence.

• Innovation and Productivity: Encouraging process redesign, technology adoption, automation, and product development.

• Market Access: Supporting companies to expand into overseas markets through branding, business development, and international compliance.

Eligible SMEs may receive funding support of up to 50% of qualifying project costs. Projects in sustainability or led by industry transformation efforts may receive enhanced support of up to 70% until 2025.

2. Why the EDG Matters in Singapore’s SME Ecosystem

Singapore’s economic resilience lies heavily on its SME sector, which contributes nearly half of the national GDP. To remain competitive in a fast-evolving global economy, these enterprises must invest in innovation, digitisation, and internationalisation.

The EDG grant aligns with government efforts to strengthen local businesses through initiatives like the Industry Transformation Maps (ITMs) and the Smart Nation programme. By offering financial support, the EDG reduces cost barriers and helps SMEs undertake strategic, long-term projects.

3. Strategic Alignment: How to Ensure Your Project Fits the EDG Framework

Before applying, SMEs should assess how their proposed initiatives align with EDG objectives. Strong proposals demonstrate not only internal benefit but also broader industry impact or alignment with national priorities (e.g., sustainability, digitalisation).

Aligning with Core Capabilities

• Building robust internal frameworks such as strategic brand development or workforce transformation.

• Strengthening your ability to scale and operate efficiently.

Aligning with Innovation and Productivity

• Developing new product lines or digital systems.

• Leveraging AI, cloud software, or IoT to streamline processes.

Aligning with Market Access

• Entering new regions with tailored go-to-market strategies.

• Localising products for international markets or securing necessary certifications.

4. EDG vs. Other Government Grants

Singapore offers various support schemes like the Productivity Solutions Grant (PSG), Market Readiness Assistance (MRA), and Startup SG. Understanding how the EDG differs is essential:

The EDG is ideal for projects requiring customised solutions, in-depth consultancy, or cross-functional innovation.

5. Eligibility: Are You Ready for the EDG Grant?

To qualify for EDG, your business must meet these criteria:

• Registered and operating in Singapore.

• Minimum 30% local shareholding.

• Financially viable to complete the project.

Though the scheme is open to larger companies, SMEs (defined as firms with <200 employees or annual turnover <S$100M) receive higher co-funding rates.

6. Selecting the Right Project: Practical Examples

Here are sample projects that align well with each EDG pillar:

Core Capabilities

• Developing a brand identity for overseas expansion.

• Implementing a new customer service framework to improve retention.

Innovation and Productivity

• Designing a custom enterprise resource planning (ERP) system.

• Automating warehouse operations to reduce labour costs.

Market Access

• Adapting product packaging for regional compliance in Vietnam.

• Partnering with a distributor in the Middle East.

7. Step-by-Step Application Process

Step 1: Identify Project Scope

Outline the business challenge or opportunity. Define expected deliverables and KPIs.

Step 2: Engage a Certified Consultant

If the project includes consultancy, hire a consultant certified by Enterprise Singapore.

Step 3: Prepare Documentation

Include:

• Latest ACRA profile

• Audited financial statements

• Consultant proposal (if relevant)

• Quotations for third-party services

Step 4: Submit Application via BGP

Log in to the Business Grants Portal (BGP) using CorpPass. Fill in all details and upload supporting documents.

Step 5: Respond to Queries

ESG may request clarifications or additional documents during evaluation.

8. Working with Consultants: Do You Need One?

Not all EDG projects require external consultants. However, for proposals involving business strategy, human capital development, or financial restructuring, a certified consultant adds value.

Certified consultants bring expertise in:

• Grant compliance and reporting

• Business transformation strategy

• Risk mitigation and process design

9. Evaluation Process: What Happens After You Apply?

Enterprise Singapore typically takes 8–12 weeks to review applications. Evaluation factors include:

• Project scope and outcomes

• Capability of implementation team

• Relevance to business and industry needs

• Return on investment

Successful applicants receive a Letter of Offer detailing the approved amount, funding conditions, and implementation guidelines.

10. After Approval: Implementation and Claim Process

Once approved, you can commence work with vendors or consultants. Keep detailed records throughout.

Claim Submission

At the end of the project, submit:

• Final report

• Invoices and receipts

• Audited accounts (by pre-approved auditor)

The reimbursement process typically takes 6–8 weeks post-verification.

11. Common Application Pitfalls

Avoid these mistakes:

• Starting the project before applying

• Submitting incomplete documents

• Failing to justify business need or KPIs

• Budget misalignment or vague cost breakdowns

Working with a consultant significantly improves success rates by pre-empting these issues.

12. How to Maximise Your EDG Funding

Here’s how successful applicants make the most of EDG:

• Plan thoroughly: Include contingency buffers and define KPIs clearly.

• Phase projects: Start with a smaller scope, then apply again for follow-ups.

• Use it for leverage: EDG funding can signal credibility when raising capital or entering new markets.

13. EDG Grant and Sustainability

From 1 April 2023 to 31 March 2026, sustainability-related projects may receive enhanced support of up to 70%. These include:

• Carbon footprint reduction

• Green packaging innovation

• Sustainable sourcing transformation

14. How Creativeans Helps as a Leading EDG Consultant

Creativeans is a certified EDG consultancy with extensive experience in branding, innovation, and business strategy. With a track record of securing grants and delivering impactful outcomes, Creativeans provides end-to-end support:

• Strategic planning and proposal drafting

• Branding and marketing development

• International market research

• Implementation tracking

15. Real-Life Case Studies

Case Study 1: Local Retailer

A homeware brand used the EDG to streamline its inventory system and develop a digital catalogue. Result: 25% reduction in fulfilment time, 30% increase in conversion rates.

Case Study 2: Logistics SME

With Creativeans’ help, a logistics firm redesigned its website, revamped service offerings, and launched overseas. Result: 3x lead generation and new partnerships in Malaysia.

Case Study 3: Manufacturing Company

Invested in robotics for assembly lines under the Innovation pillar. Result: Labour cost dropped by 40%, and production speed doubled.

16. Tips for SMEs New to EDG

• Start with a small project under Core Capabilities.

• Reach out to SME Centres for guidance.

• Prepare your financials and internal documentation early.

• Allocate time and resources to manage the project post-approval.

17. FAQs About EDG Grant

Q1: Can I apply for multiple EDG grants?
Yes, as long as each project is distinct and non-overlapping.

Q2: Is the EDG only for tech companies?
No. Any SME in any sector can apply if their project supports growth or transformation.

Q3: What’s the difference between audited and unaudited financials?
Audited financials are verified by third-party auditors. If unavailable, certified management accounts may be used.

18. What’s Next for EDG Grant?

The EDG will likely evolve with Singapore’s economic strategy. Key future trends include:

• Enhanced focus on sustainability and digitalisation.

• Greater integration with other funding schemes like ESG’s Green Economy initiatives.

• Broader consultancy support under a multi-disciplinary model.

Staying informed and proactive ensures your business remains eligible and competitive.

Conclusion: Turn Funding into Real Results

The EDG grant is more than a subsidy—it’s a growth enabler. Whether you’re building internal capabilities, innovating products, or entering new markets, this grant makes ambitious transformation financially feasible. But success doesn’t come from the grant alone. It requires clarity, planning, and execution.

Singapore SMEs that take full advantage of EDG funding—especially with the support of certified consultants like Creativeans—can drive lasting business impact and strategic growth.

Your transformation starts today.