THE ENTERPRISE GROWTH DEVELOPMENT SCHEME

• Assistance is not available for activities directed at the South African market

What is the Enterprise Growth Development Scheme?

The Enterprise Growth Development Scheme (EGDS) is one part of the Government’s Business Development Programme. EGDS provides grants to help businesses throughout New Zealand to become more efficient and effective in the marketing of their goods and services, in other words, it aims to improve New Zealand’s competitiveness.

The Scheme is run by a New Zealand wide network of 21 Business Development Boards.

What Does the Scheme Offer?

EGDS offers a maximum grant of $20,000 to any one applicant under this scheme or, this scheme and the Expert Assistance Grant Scheme (EAGS) combined, in any July-June year; it provides 50 percent of approved qualifying costs up to this maximum.

The scheme offers assistance in seven areas - each of these has an annual maximum grant component. These are:

1. Market Research into New Markets - 50 percent of qualifying costs to a maximum grant of $5,000.

2. Exploration Visits to New Markets - 50 percent of qualifying costs to a maximum grant of $7,500.

3. Trade Fair Participation - 50 percent of qualifying costs to a maximum grant of $10,000.

4. Promotion/Advertising in New Markets - 50 percent of qualifying costs to a maximum grant of $4,000.

5. Protection of Intellectual Property Rights - 50 percent of qualifying costs to a maximum grant of $2,000.

6. Proposal Costs for Development Projects, After Shortlisting - 50 percent of qualifying costs to a maximum grant of $5,000.

7. Costs of Undertaking Quality Assurance Audits/Certification - 50 percent of qualifying costs to a maximum grant of $3,500.

Applicants can lodge more than one application under any one of the Scheme’s components but, the maximum grant per component cannot be exceeded.

NOTE: * Under the terms of the Australia and New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), assistance cannot be provided under this scheme for activities directed to the Australian market.

Who Can Apply?

Any individual, business or organisation resident in New Zealand and registered for either income tax or goods and services tax purposes (ie based in New Zealand for the purposes of tax) meeting the following three criteria is eligible to apply:

1. Produces goods or provides services that already compete, or show potential to compete, in both domestic and international markets. This encompasses businesses that are selling or intending to sell in overseas markets and those that are selling in competition with imports; and

2. has been trading for not less than 18 months; (a business which has been in existence for this length of time, or more, but has not traded during this time would not be eligible); and

3. the good or service for which assistance is sought under this scheme is being produced/provided in New Zealand.

What Are Each Component’s Qualifying Costs?

Component One: Market Research into New Markets (maximum of $5,000)

The aim of this component is to help applicants define the potential for their goods and/or services in new markets - to assist them in researching these markets before undertaking any visits to these. New markets are defined as markets in which the applicant’s good or service - for which assistance is sought - has not been sold by the applicants; markets are considered on a country-by-country basis, except the United States of America and Canada - the United States of America is made up of six distinct markets:

• North East States
• South East States
• North West States
• South West States
• North Central States
• South Central States.

Canada is made up of 2 distinct markets:

• West Canada (Manitoba and all provinces West thereof)
• East Canada (Ontario and all provinces East thereof)

If the applicant already sells any goods or services to the market for which assistance is sought, then consideration will be given to the broad consumer group already being serviced in determining if the new market requirement is met.

This component provides assistance to help meet the cost of employing a consultant(s) to research a market(s). This can take the form of either specially commissioned market research and/or the review of existing research (this can be either New Zealand or overseas research).