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Budget 2010: More help for your business…

Are you aware that your business may be eligible for assistance in the form of grants, business advice or even overseas office space? The recent budget included several new initiatives increasing the available funding and making it easier for businesses to access the support.

From research and development to hiring labour, there is a wide variety of assistance available to New Zealand businesses. It is commonly misconceived that the help is only for start-ups, but there are also a number of initiatives for mature organisations of all sizes. Grants may be given to develop new products and markets, including research and development and commercialisation of your ideas. There are a number of subsidies available if you are in a position to provide roles for the long-term unemployed, disadvantaged or people with disabilities. In addition, if you are exploring international markets, there are also services provided by overseas organisations such as the Japan External Trade Organisation.

What’s new?

The May 2010 budget changes incorporated $234 million additional support for business research and development including:

• Technology Development Grants to support New Zealand firms with a strong record of substantial R&D investment. This assistance will be launched in October 2010, and is aimed at organisations with revenues of at least $3 million per annum and spending 5% or more of revenue on R&D. This grant has been designed to give increased certainty for businesses, with any funding granted being provided for a period of three years.
• Technology Transfer Vouchers to increase the technology and knowledge transfer from research organisations into firms. This scheme is designed for businesses lacking an in-house R&D capability, and is due to be launched in November 2010.
• Commercialisation Centres will be established to improve networking for existing commercialisation initiatives, particularly with universities and Crown Research Institutes. The network is expected to be set up by mid-2012.
• Training and support to help small businesses access information, funding, training and development services. The details are yet to be finalised but the training subsidies will operate using a partial voucher system of up to $5,000 per firm. This will allow eligible businesses to choose an accredited training institution, including private sector providers.

Regional Network

New Zealand Trade and Enterprise (NZTE) and the Foundation for Research Science and Technology (FRST) are creating a nationwide network of ‘regional partners’. This will provide a new model to deliver publicly funded information and development services, building upon the R&D support provided by existing TechNZ partners. The network will be resourced to allow small businesses to easily access information and advice.

Other support

In addition to the new initiatives listed above, there are still a variety of other ways for your business to obtain help:

• TechNZ Technology and Capability Funding for projects with technical hurdles to overcome which once solved can create intellectual property (IP) that can be protected. This IP should have the potential to generate significant export income. The support on offer includes funding for R&D, and expert advice on matters such as how to take a technology to market, patent strategy and technical due diligence. TechNZ can also help with technical resources such as Masters students and internships.
• NZTE International Growth Fund for businesses assessed as most likely to succeed internationally in the short to medium term and contribute to New Zealand’s long-term growth. There are two levels of funding aimed at both large businesses and SME’s.
• NZTE Business Mentors enable businesses to draw on the skills and expertise of experienced professionals to assist new ventures.
• WINZ operate a number of schemes designed to provide employment opportunities for people with disabilities, young people lacking work experience and to avoid redundancies. Businesses can benefit from subsidised labour or grants.

How can you access this funding?

In the first instance, contact your local TechNZ Partner:

Enterprise North Shore, 09 414 1341, enterprisenorthshore@technz.co.nz
Enterprising Manukau, 09 262 2244, enterprisingmanukau@technz.co.nz
Waikato Innovation Park, 07 857 0500, waikatoinnovationpark@technz.co.nz
Venture Hawke's Bay, 06 834 1918, venturehawkesbay@technz.co.nz
Venture Taranaki, 06 759 5150, venturetaranaki@technz.co.nz
Vision Manawatu, 06 350 1830, visionmanawatu@technz.co.nz
Grow Wellington, 04 382 0077, growwellington@technz.co.nz
Canterbury Employers' Chamber of Commerce, 03 366 5096, cecc@technz.co.nz
Dunedin City Council, 03 474 3509, dcc@technz.co.nz

Whilst some of the larger funding applications may take some time to process, it could take just a few days to process the under $5,000 funds and around 2-3 weeks for a decision on applications up to $30,000. The majority of funding is on a 50/50 basis paid at the end of the project. Claims cannot be retrospective, so if you are about to start an R&D project, or trying to access a new market, then look for assistance now!

If you are interested in the opportunities for employers see the Work and Income New Zealand website at www.workandincome.govt.nz for details on how to apply.

Further details of all of the assistance on offer is available on our website at www.staplesrodway.com, with a table including easy to use links to relevant websites. You may also wish to contact your usual advisor for further assistance with the application processes.

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