The universal rule applied whether you are a startup SME or multi-national corporation (MNC).
Maximise profit and minimise Cost
Most company focus on maximise profit and overlook on how to save money. First thing that come into your mind about cost saving is probably tighten up spending. If you are a local businesses, the good news is that you can leverage on the government grants available in the market to help you save cost.
The perk as Singapore retailers, you have as many as 10 different types of government grants cater for start up, local companies or partnership programs when you broaden your territory oversea.
Amongst all, we have shortlisted the top 3 important grants that you should pay attention to.
The Top 3 Government Grants for Retail Business
- Productivity Solution Grant (PSG)
- Enterprise Development Grant (EDG)
- Market Readiness Assistance Grant
1. Productivity Solution Grant (PSG)
Grant objectives
PSG grant aims to support local companies with adoption of IT solutions and equipment to enhance business processes and increase productivity through automation.
Eligibility
- The business entity must be registered in Singapore
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
- Have a minimum of 30% local shareholding (for selected solutions only)
Grant support
Up to 70% funding support, for companies making long-term technology investments
PSG is the most accessible grant scheme for retail business as retail industry is one of the key sector that government encourage to embark on digital transformation. Retail sector contributes up to $35 bil annually, from 21,000 establishments. You can get support from PSG when adopting eCommerce solution (eg. Shopify), Omni-channel POS System (eg. Vend), or integrated cloud accounting system (eg. XERO).
See the full list of supported solutions on Tech Depot
The application process for PSG is straight forward where you can find out the details step by step guide here.
Who should apply
Retailer who has yet to upgrade from the cash register system are likely to benefits from electronic POS System (ePOS) using PSG.
Unlike cash register systems, ePOS system such as Vend, is one of the recommended brand for managing multi-outlet retail business. The cloud based point-of-sale system enhance inventory management, customer engagement and giving real-time information which empower business owner to make strategic decision.
One great example is the multi-outlets fashion retailer, OMOSE who benefits from PSG grant to deploy Vend Retail Management System to all his outlets, integrate with Shopify eCommerce, XERO accounting software and enable Omni-channel Loyalty program at one go. The fashion retailer has since experience the cost saving, revenue increase with greater customer retention.
Solution Pricing
Singapore retailer can purchase Vend pre-approved package at $5100 and get subsidy up to $2670 to enjoy all the benefits that advanced IT system can benefits them. And they can purchase multiple packages up to $30,000 for retailers who has multiple outlets.
2. Enterprise Development Grant (EDG)
Grant objectives
EDG grant is design for company that has already transform with basic digital solution such as POS System or accounting system to strengthen the business foundation and further enhance and optimise the process for further scaling. You can regards that as “Phase 2” digital transformation.
The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help you upgrade your business, innovate or venture overseas, under three pillars:
Core Capabilities – Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations. These should go beyond basic functions such as sales and accounting.
Innovation and Productivity – Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflow and processes. Companies could also tap into automation and technologies to make routine tasks more efficient.
Market Access – Projects under Market Access support Singapore companies that are willing and ready to venture overseas. You may tap into the EDG to help defray some of the costs of expanding into overseas markets.
Eligibility
- The business entity must be registered in Singapore
- At least 30% local shareholding
- Be in a financially viable position to start and complete the project (Applications will be assessed by Enterprise Singapore based on project scope, project outcomes, and competency of the service provider.)
Grant support
The grant funds up to 70% of qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost.
Related links
3) Market Readiness Assistance (MRA) Grant
Grant objectives
The MRA Grant aim to assists Singapore SME to expand their business to oversea and participate in activity such as market entry, or participation in a trade fair.
Eligibility
- Business entity is registered/incorporated in Singapore
- At least 30% local shareholding
- Group annual turnover not exceeding S$100 million per annum based on the most recent audited report, or group employment not exceeding 200 employees
Grant support
Up to 70% of eligible costs, capped at 20K per company per fiscal year that covers
Related links
More good news
You can apply all these 3 grants together as they are not mutually exclusive. However, you should plan your resources well to maximize the outcome of the grants.
You can visit Business Grant Portal and start applying