Starting and growing a small business in Singapore is made easier by various government resources designed to support productivity, innovation, and expansion.

From funding grants to sector-specific support, Singapore’s government initiatives ensure small and medium-sized enterprises (SMEs) have the resources needed to thrive. Here, we’ll explore the most valuable government resources, including grants and loans, available to small businesses in Singapore.

Major Grant Programs for Small Businesses

Several government grants provide critical financial support for business growth and innovation. Below are the main grant options available to Singapore SMEs:

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports companies seeking to improve their capabilities in various areas, including innovation, market expansion, and business transformation.

Funding Support: Up to 70% for eligible costs
Focus Areas:
Business upgrading
Market and international expansion
Innovation and productivity improvement
Eligibility:
Minimum 30% local ownership
Demonstrated financial stability
Example Use: A small manufacturer could use the EDG to implement advanced production systems to improve efficiency.

Startup SG Programs

The Startup SG initiative provides various types of support for startups with innovative ideas and growth potential.

Program	Description
Startup SG Founder	Offers S$50,000 capital grant with a co-matching fund of S$10,000
Startup SG Tech	Provides funding for proof-of-concept (POC) and proof-of-value (POV) projects
Startup SG Equity	Investment matching for startups with high innovation potential

These programs help startups secure early-stage funding, attract private investment, and support the development of new technologies.

Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) is designed to encourage small businesses to adopt technology and productivity solutions.

Funding Support: Up to 50% of eligible costs, capped at S$30,000 per year
Solution Categories:
IT solutions and software
Digital marketing tools
Inventory tracking systems
HR management software
Eligibility:
Registered and operating in Singapore
Minimum 30% local ownership
Annual turnover not exceeding S$100 million or employment size under 200

Success Stories: ComfortDelgro Engineering leveraged the PSG to install a new ERP system, reducing administrative costs by 15%.

Sector-Specific Support

In addition to general grants, Singapore offers sector-specific resources to boost growth in key industries.

Industry-Focused Grants

Grant	Target Industry	Purpose
Agri-Food Cluster Transformation Fund	Agri-Food	Encourages tech adoption to boost productivity
Energy Efficiency Grant	Manufacturing, Construction	Supports energy-saving measures to reduce environmental impact
Tourism Business Improvement Fund	Tourism	Enhances capabilities within Singapore’s tourism sector
Early Childhood Industry Digital Plan	Early Childhood	Supports digitalization in childcare services

These grants are essential for companies operating in specific sectors, enabling them to implement advanced solutions tailored to industry needs.

Financial Assistance Options

For businesses seeking flexible financing, the Enterprise Financing Scheme (EFS) provides various loan options to support growth, trade, and operational needs.

Enterprise Financing Scheme (EFS)

The EFS, managed by Enterprise Singapore, offers comprehensive financial support for various business needs:

Types of Loans:
Working Capital Loans: For day-to-day operational expenses
Fixed Assets Financing: To purchase and lease machinery, equipment, and factories
Trade Loans: For companies involved in import and export
Project Financing: For capital-intensive projects
Green Financing: For sustainable and environmentally friendly projects

Loan Type	Purpose
Working Capital	Cover operational expenses
Fixed Assets	Purchase and leasing of equipment
Trade Loans	Facilitate import/export trade activities
Project Financing	Capital-intensive projects
Venture Debt	Higher-risk ventures with strong growth potential

The EFS offers flexibility for businesses at various stages, from managing operational cash flow to financing long-term expansion projects.

How to Choose the Right Government Resource for Your Business

With multiple funding and support options, selecting the best resource depends on your business’s current stage and goals. Here are some tips:

Define Business Objectives: Identify if your priority is growth, innovation, or operational efficiency.
Evaluate Eligibility: Review eligibility criteria to ensure your business qualifies.
Consider Industry Needs: Sector-specific grants may offer tailored benefits.
Plan for Compliance: Ensure your business meets the requirements for documentation and local ownership.

Eligibility Criteria Overview

Requirement	Details
Singapore Registration	Must be registered and operating in Singapore
Local Shareholding	Minimum 30% local ownership required
Financial Stability	Ability to demonstrate financial capability
Growth Potential	Commitment to innovation and productivity

Frequently Asked Questions (FAQs)

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

The EDG provides funding of up to 70% to support business development, international expansion, and innovation projects.

2. Are sector-specific grants available for small businesses?

Yes, Singapore offers sector-specific grants such as the Tourism Business Improvement Fund and Energy Efficiency Grant tailored to industry needs.

3. How do I apply for the Productivity Solutions Grant (PSG)?

You can apply for the PSG through the GoBusiness Portal. Ensure your business meets the eligibility requirements and select solutions from the list of pre-approved vendors.

4. What is the maximum funding support available under the PSG?

The PSG provides up to 50% funding support, capped at S$30,000 per fiscal year for eligible businesses.

5. Can startups access early-stage funding?

Yes, Startup SG programs offer early-stage funding options such as Startup SG Founder for capital grants and Startup SG Equity for investment matching.

Conclusion

Singapore’s comprehensive suite of government resources empowers small businesses to achieve growth and innovation through targeted grants, sector-specific support, and flexible financing options. Leveraging these resources can provide a competitive edge in a dynamic market.

Start exploring these programs today to find the best fit for your business’s needs, and take advantage of Singapore’s robust support for SMEs.