The Market Readiness Assistance (MRA) Grant is a financial aid program aimed at helping Singapore-based small and medium enterprises (SMEs) expand their business overseas. Administered by Enterprise Singapore, this grant is designed to support companies in taking their first steps into international markets. However, what is an MRA grant? SMEs must meet certain eligibility criteria to qualify for the MRA Grant.
Business Entity Criteria
- Registration and Location: The business must be registered and operating in Singapore. This ensures that the primary beneficiaries of the grant are local enterprises.
- Company size: The SME should have at least 30% local shareholding. Additionally, the company’s group annual sales turnover should be no more than SGD 100 million, and the company’s group employment size should not exceed 200 employees. what is an MRA grant, these criteria align with the typical definitions of SMEs, focusing support on smaller businesses that may need more assistance in international expansion.
Project Criteria
- Internationalization Projects: The grant is intended for projects aimed at entering new overseas markets. These projects can include overseas market setup, identification of business partners, and overseas market promotion. It’s important to note that the grant covers projects related to new market entry and does not support activities within existing markets where the business already operates.
- Pre-approved Activities: The activities funded under the MRA Grant must fall under the predefined categories by Enterprise Singapore. These typically include overseas market setup, business matching, and market promotion activities like participation in trade fairs and marketing campaigns. The intent is to ensure that the grant funds are used effectively to foster genuine market expansion efforts.
Financial Health and Capability
- Financial Stability: The SME must be financially stable to embark on the proposed internationalization project. While the MRA Grant provides substantial financial support, it is not designed to cover all expenses. Therefore, businesses should demonstrate their capability to co-fund the project and sustain operations.
- Viability of Business Model: The applicant’s business model and the proposed internationalization project should be viable and have the potential for success in the targeted overseas market. This includes having a clear and strategic plan for market entry, an understanding of the target market, and realistic financial projections.
Compliance with Regulations
- Adherence to Guidelines: The SME must comply with all guidelines and submission requirements set by Enterprise Singapore. This includes detailed project proposals, proper documentation, and adherence to the timelines for project implementation and reporting.