In today’s fast-evolving business environment, efficiency, innovation, and resilience are crucial for sustained growth. For Singaporean companies, especially Small and Medium Enterprises (SMEs), improving internal business processes can unlock higher productivity, reduce costs, and enhance competitiveness. One key enabler in this journey is the Enterprise Development Grant (EDG) administered by Enterprise Singapore.
The EDG supports local companies in transforming their business operations, innovating, and venturing into overseas markets. This article explores how and why Singapore businesses should tap into the EDG to improve their business processes, the types of projects it supports, and the benefits it brings.
1. Understanding the Enterprise Development Grant (EDG)
The Enterprise Development Grant is a government initiative designed to help Singapore companies grow and compete globally. It provides up to 50% funding support for qualifying project costs, including third-party consultancy fees, software and equipment costs, and internal manpower expenses.
There are three main pillars under the EDG:
- Core Capabilities – Strengthening the company’s foundational capabilities like strategy development, human capital, and financial management.
- Innovation and Productivity – Supporting process redesign, automation, and product development to improve efficiency and innovation.
- Market Access – Assisting companies with international expansion efforts, such as overseas market setup and pilot projects.
For businesses focused on improving their internal systems and workflows, the Innovation and Productivity pillar is particularly relevant.
2. Why Business Process Improvement Matters
Before diving into how EDG helps, it’s important to understand the value of process improvement. Many businesses in Singapore struggle with:
- Manual, repetitive tasks that drain manpower
- Disjointed workflows across departments
- Poor inventory or customer management systems
- Limited data usage for decision-making
- Slow response times to customer or market needs
These inefficiencies can lead to higher costs, staff burnout, poor customer satisfaction, and ultimately, stagnation. By streamlining and digitalizing processes, businesses can:
- Boost productivity
- Improve accuracy and compliance
- Enhance service delivery
- Enable scalability and growth
3. How EDG Supports Business Process Improvement
The EDG provides both funding and guidance to companies seeking to improve their business processes. Here’s how:
a. Process Redesign Projects
Under the Innovation & Productivity pillar, companies can engage consultants to study and re-engineer their current workflows. For example, a retail company might revamp its inventory system to reduce stock-outs and overstocking, while a logistics firm might optimize its route planning to reduce fuel consumption.
These projects typically involve:
- Workflow mapping and analysis
- Identification of bottlenecks
- Design of new processes
- Implementation of new systems or software
EDG can subsidize up to 50% of eligible costs involved in hiring a certified consultant, acquiring necessary software, and training staff.
b. Automation Projects
Many SMEs still rely on manual processes for tasks like invoicing, order fulfillment, HR management, and data entry. Through EDG, businesses can fund automation solutions such as:
- Robotic Process Automation (RPA)
- Enterprise Resource Planning (ERP) systems
- CRM and inventory management software
- E-commerce and POS system integrations
Automation not only reduces errors and frees up staff for higher-value tasks but also provides the data insights needed for strategic decision-making.
c. Technology Adoption
Besides process redesign and automation, EDG also supports the adoption of advanced technologies like:
- Internet of Things (IoT) for real-time tracking
- Artificial Intelligence (AI) for customer support or predictive analysis
- Business Intelligence (BI) tools for reporting and analytics
These tools enable businesses to make faster, smarter decisions and remain agile in a dynamic marketplace.
4. Key Benefits of Using EDG for Process Improvement
Tapping into EDG brings a host of advantages for companies serious about transformation:
a. Reduced Financial Burden
Process improvement projects often require a significant upfront investment. With EDG covering up to 50% of project costs, businesses can pursue much-needed upgrades without straining cash flow.
b. Access to Expert Consultants
The EDG encourages businesses to work with certified consultants who bring specialized knowledge in areas like Lean management, Six Sigma, ERP deployment, and more. This ensures professional and effective implementation.
c. Improved Efficiency and Profitability
With streamlined workflows, better resource allocation, and fewer redundancies, companies often see measurable gains in productivity and reductions in operational costs.
d. Greater Resilience and Competitiveness
In an uncertain global economy, businesses with optimized and automated processes can pivot more quickly, serve customers better, and weather disruptions more effectively.
e. Scalability and Future Readiness
Companies with well-designed internal systems are better equipped to scale operations, expand regionally, or integrate new technologies down the line.
5. Real-World Use Cases of EDG in Process Improvement
Here are some examples of how Singapore companies have leveraged EDG to transform their operations:
- Manufacturing: A precision engineering firm implemented an ERP system to integrate its procurement, production, and finance departments, cutting down processing time by 30%.
- Retail: A fashion retailer redesigned its inventory and sales tracking systems, leading to more accurate forecasting and a 20% reduction in dead stock.
- F&B: A restaurant chain adopted a kitchen automation system and digital ordering, improving order accuracy and reducing wait time by 40%.
- Professional Services: An accounting firm implemented a CRM and document automation system, freeing up over 100 hours per month in admin work.
These success stories underscore how impactful process improvements can be when supported by a robust grant like EDG.
6. Eligibility and Application Process
To be eligible for the EDG, a business must:
- Be registered and operating in Singapore
- Have a minimum of 30% local shareholding
- Be in a financially viable position to start and complete the project
The application process generally includes:
- Scoping and planning the project
- Identifying a suitable certified consultant (if needed)
- Preparing the required documents (project proposal, cost breakdown, business impact)
- Submitting the application via the Business Grants Portal (BGP)
Enterprise Singapore will assess the project based on its potential to improve business capabilities and drive growth.
7. Conclusion
In an increasingly competitive and tech-driven economy, continuous process improvement is no longer optional — it’s essential. The Enterprise Development Grant (EDG) empowers Singapore businesses to modernize their operations, improve productivity, and build sustainable foundations for growth.
By tapping into EDG, SMEs and larger companies alike can reduce costs, gain operational clarity, and position themselves for regional or global expansion. Whether you’re aiming to automate processes, adopt technology, or redesign workflows, EDG provides the necessary support to turn plans into action.
If your business is ready to evolve, there’s no better time than now to explore what the Enterprise Development Grant can do for you.