If you’re a Singaporean SME looking to expand overseas, you’ve probably heard of the Market Readiness Assistance (MRA) grant. This grant, supported by Enterprise Singapore, aims to help local companies grow their businesses by defraying the costs of overseas market promotion, business development, and set-up. However, there are some common misconceptions about the MRA grant that might be holding you back from applying.
One of the most common misconceptions about the MRA grant is that it’s only available to large companies. In reality, the grant is open to all local SMEs, provided they meet certain eligibility criteria. Another misconception is that the grant only covers overseas market promotion. While this is one of the activities that the grant can be used for, it can also be used for overseas business development and set-up.
What are some of the other misconceptions about the MRA grant that you should be aware of?
Eligibility Criteria and Common Misunderstandings
When it comes to the Market Readiness Assistance (MRA) Grant, eligibility is a key factor that business owners need to understand. One of the most common misconceptions is around the definition of Small and Medium Enterprises (SMEs).
According to EnterpriseSG, an SME is defined as a business entity that has:
- At least 30% local shareholding
- Group annual sales turnover of not more than S$100 million, or group employment size of not more than 200 workers
It is important to note that the eligibility criteria for the MRA Grant is not limited to Singaporean SMEs. Sole proprietors and partnerships are also eligible to apply for the grant, provided they meet the eligibility criteria.
Understanding Group Annual Sales and Employment Size
Another common misunderstanding about the MRA Grant eligibility criteria is around the definition of group annual sales turnover and group employment size. According to EnterpriseSG, group annual sales turnover refers to the total revenue generated by the company and its subsidiaries, while group employment size refers to the total number of employees in the company and its subsidiaries.
Clarifying Ultimate Individual Ownership
Ultimate individual ownership is another factor that is often misunderstood when it comes to the MRA Grant eligibility criteria.
A company qualifies for the grant if it has a minimum of 30% local equity, either directly or indirectly owned by Singaporean citizens and/or Singapore Permanent Residents (PRs), as determined by ultimate individual ownership.
Business owners need to understand the eligibility criteria for the MRA Grant to avoid any misunderstandings or misconceptions. By meeting the eligibility criteria, businesses can take advantage of the grant to expand their market overseas and develop their brand internationally.
Scope of the MRA Grant and Expense Qualifications
As a business owner seeking to expand your business overseas, the Market Readiness Assistance Grant can be a valuable resource. However, it’s important to understand the scope of the grant and the expense qualifications to ensure that you’re making the most of this opportunity.
Understanding Eligible and Ineligible Expenses
The MRA Grant covers expenses related to overseas market set-up, market-entry, and physical and virtual trade fairs. Eligible costs include airfare, accommodation, booth rental, and other expenses related to participating in trade fairs. However, it’s important to note that not all expenses are eligible. For example, expenses related to product development or research and development are not covered by the MRA Grant.
Differentiating Between Physical and Virtual Activities
It’s also important to differentiate between physical and virtual activities when it comes to the MRA Grant. Physical activities, such as attending a trade fair overseas, are eligible for the grant. However, virtual activities, such as participating in a virtual trade fair or setting up a virtual office, are not covered by the MRA Grant.
Intellectual Property and Trade Compliance Nuances
Another important aspect to consider when applying for the MRA Grant in Singapore is intellectual property and trade compliance. If you’re planning to apply for the grant to cover expenses related to intellectual property, such as filing a trademark application, it’s important to ensure that your application is compliant with local laws and regulations.
Similarly, if you’re planning to participate in a trade fair, it’s important to ensure that your activities are compliant with local trade regulations.
expense qualifications to ensure that you’re making the most of this opportunity. By understanding the eligible and ineligible expenses, differentiating between physical and virtual activities, and being aware of intellectual property and trade compliance nuances, you can ensure that your MRA Grant application is successful.
The Application and Claim Process Explained
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Navigating the Business Grants Portal
To apply for the MRA Grant, you will need to navigate the Business Grants Portal (BGP). This portal is used to submit your application and claim for the grant. You will need to log in to the portal using your SingPass.
Once you have logged in, you will need to select the MRA Grant from the list of available grants. From there, you will be guided through the application process. You will need to provide information about your company, the target market you wish to enter, and the proposed marketing/PR campaign.
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Preparing Documentation and Understanding Approval
To support your application, you will need to submit a proposal, a vendor quotation, and other relevant documents. All documentation must be complete and accurate, as any missing or incorrect information can delay the approval process.
Once your application has been submitted, it will be reviewed by the relevant authorities. If your application is approved, you will receive a Letter of Offer outlining the terms and conditions of the grant.
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Receiving and Utilising the Letter of Offer
Once you have received the Letter of Offer, you can begin to utilise the grant. It is important to note that the grant can only be used for the specific purposes outlined in the Letter of Offer. Any unapproved use of the grant can result in an audit and may require you to repay the grant.
To claim the grant, you will need to submit a claim through the BGP. You will need to provide documentation to support your claim, such as invoices and receipts. Once your claim has been approved, the grant will be disbursed to your company.
It is important to keep accurate records of all expenses related to the grant, as you may be audited at any time. If you are audited, you will need to provide documentation to support your claim. It is recommended that you engage an auditor to help you prepare for an audit.
Overall, the application and claim process for the MRA Grant can be complex, but by following the guidelines provided by EnterprisesG and ensuring that all documentation is complete and accurate, you can increase your chances of success.
Maximising the Benefits of the MRA Grant
The MRA Grant is an excellent opportunity for businesses to expand their operations into new international markets. However, to truly maximise the benefits of the MRA Grant, you need to have a strategic plan in place that leverages the grant for overseas market promotion and business development. Here are some tips to help you get started.
Leveraging the Grant for Overseas Market Promotion
One of the main benefits of the MRA Grant is that it helps businesses defray the costs of overseas market promotion.
To maximise the grant for overseas market promotion, you need to have a clear idea of your target overseas market. This involves conducting market research to identify potential customers, competitors, and market trends. Once you have identified your target market, you can use the grant to fund market promotion activities such as business matching, trade shows, and market visits.
Strategic Planning for Business Development and Market Entry
Another way to maximise the benefits of the MRA Grant is to use it for strategic planning for business development and market entry. This involves developing a comprehensive plan for overseas expansion that takes into account factors such as sales turnover, new market opportunities, and market entry activities.
Further, the MRA Grant can be used to fund activities such as market research, feasibility studies, and business matching with potential agents, distributors, and joint venture partners.
To ensure that your strategic plan is effective, you should also consider working with consultants who have expertise in international markets and trade compliance. These consultants can provide valuable insights and guidance on issues such as local regulations, customs, and taxes.
In conclusion, the MRA Grant is a valuable resource for businesses looking to expand into international markets. Leveraging the grant for overseas market promotion and strategic planning for business development and market entry, you can maximise the benefits of the grant and successfully enter new international markets.
