1 Entrepreneurs Programme - Business Growth Grants Version: 15 July 2015
2 Contents 1 Purpose of this guide Programme overview Business Management overview Business Growth Grant Who can apply for a Business Growth Grant? How to apply for a Business Growth Grant What to include in your application What improvements are eligible What improvements are not eligible How your application will be assessed If your application is successful Grant Agreement How the grant will be paid Project Variations If your application is unsuccessful Tax Obligations Other things you should know Conflicts of interest How we manage conflicts of interest Use and disclosure of information Protection of information Confidential and Personal information When we may reveal or use Confidential and Personal Information Disclosure of information where authorised or required by law Protection of information by Business Advisers and Business Facilitators Freedom of information Information storage Public announcement Feedback Customer Information Guide: Business Growth Grants Page 2 of 14
3 Disclaimer Business Management services are undertaken by Business Advisers and Business Facilitators employed by Industry Partners. Using the information you supply, the Business Adviser or Business Facilitator will make recommendations to you to improve your business. If you re eligible, your business may choose to address these areas with the assistance of a Business Growth Grant. Business Management relies upon information you provide and may include the views of other parties in providing this service. As such, the Commonwealth is unable to guarantee the accuracy, completeness and relevance of services for your purposes. You should therefore satisfy yourself that it is appropriate for your business needs before taking any action. The Commonwealth excludes all liability to the maximum extent permitted by law for any loss, damage, cost or expense suffered or incurred arising from the use of, or reliance upon, Business Management or any actions taken by your business in addressing issues or implementing recommendations identified as part of Business Management activities, complementary services or otherwise provided separately by a Business Adviser or Business Facilitator. Customer Information Guide: Business Growth Grants Page 3 of 14
4 1 Purpose of this guide This Customer Information Guide (Guide) explains the Business Growth Grant element of the Entrepreneurs Programme and sets out the rules for receiving services and grants under this element. You should read this Guide in conjunction with the Programme Guidelines and any related documents. Please read this Guide carefully before you start filling out an application form. 2 Programme overview The Entrepreneurs Programme (the Programme) drives business growth and competitiveness by supporting business improvement and research connections in targeted growth sectors and the commercialisation of novel products, processes and services. The Programme has three elements: Business Management Research Connections Accelerating Commercialisation. The primary focus of the Programme is on providing access to the best advice and networks to help businesses solve problems, rather than focusing on financial assistance. 2.1 Business Management overview Business Management encourages and assists small and medium businesses to improve their capabilities, extend their networks and take advantage of growth opportunities. Business Growth Grants support business improvements recommended through delivery of Business Management Activities which include: Business Evaluations a range of Services initially comprising an evaluation by a Business Adviser to tailor the Service to the participants needs, based on the participant s capacity, commitment and need to undertake significant improvements. Business Growth Services a range of Services that support a participant, over an extended engagement, to achieve growth through strategic business improvements and connections. A Business Adviser conducts initial growth opportunity and capability analysis, develops a tailored and agreed Growth Plan, provides access to specialist Business Advisers and Business Facilitators, and brokers connections to experts and providers to assist the business to capitalise on its growth opportunities. Supply Chain Facilitation a range of Services delivered to a participant to facilitate access to supply chain opportunities in the Growth Sectors. Participants may attend Customer Connections events or undertake a Supplier Improvement Plan to improve their capability in meeting supply requirements. Business Growth Grants small, co funded grants to engage external expertise to assist businesses with implementing improvements recommended through a Business Evaluation, Supply Chain Facilitation or a Business Growth Service. For further information on Business Management Activities refer to business.gov.au or call the contact centre on Customer Information Guide: Business Growth Grants Page 4 of 14
5 3 Business Growth Grant Following a Business Management Activity, if you received a report or plan which outlines a range of recommendations for improvement, you may be able to apply for a Business Growth Grant to help with the cost of engaging a consultant or expert to implement the recommendations. A Business Growth Grant reimburses businesses, after completion of the project, for up to half of the cost of engaging a consultant, to a maximum of $20,000 (excluding GST), to make business improvements that were recommended in the Activity. The grant supports recommendations that improve the abilities and skills of your business. It doesn t support fixes for problems that are part of the ordinary every day operations of your business. 3.1 Who can apply for a Business Growth Grant? You may be able to apply for a Business Growth Grant if you meet all of the following conditions: you are applying for a Business Growth Grant within: a) six months of receipt of a Business Evaluation Report, Business Evaluation Action Plan or Supplier Improvement Plan; or b) within 24 months of receipt of a Growth Plan; or c) six months of receipt of a Business Review Report, Continuous Improvement Report or Continuous Sustainable Improvement Plan under the Enterprise Connect programme. unless otherwise agreed by the Programme Delegate, an employee of the department who has been authorised by the Minister to administer the programme. The six month period can be extended to twelve months where a business can demonstrate substantial activity undertaken to implement the recommendations in the report or plan within six months of the delivery of the report or plan. you are implementing recommendations identified in a: a) Business Evaluation Report, Business Evaluation Action Plan, Supplier Improvement Plan or Growth Plan; or b) Business Review Report, Continuous Improvement Report or Continuous Sustainable Improvement Plan under the Enterprise Connect programme. you are able to fund the total value of project costs to engage the consultant before receiving the Grant (which is worth half of the total project value up to a maximum Grant of $20,000). 3.2 How to apply for a Business Growth Grant To apply for a Business Growth Grant, you must complete the online Business Growth Grant Application Form at business.gov.au. An application for a Business Growth Grant must: provide all the information specified in the application form; and be completed by you or an authorised representative of your business, such as your business s: Chief Executive Officer Chief Financial Officer Director Chair of the Board President Authorised manager. Customer Information Guide: Business Growth Grants Page 5 of 14
6 Applications that are deemed to be for a business or project that is substantially the same as a previously ineligible or unsuccessful application may be rejected. 3.3 What to include in your application Your application must include at least 2 quotes from different consultants to implement part, or all, of the recommendations in the report or plan. Two quotes are required to: understand the options that are available; and compare prices to make sure you are getting value for money. Quotes must address: the report or plan recommendations that you will implement; the services the consultant will provide, including a break-up of key activities; delivery timeframes; costs; the payment schedule (including hourly or daily rates); the estimated number of consulting hours or days for each of the key activities; and the key people who will undertake the project work. Quick Guides which provide assistance on approaching consultants and assessing quotes are available on business.gov.au. Your application must demonstrate: the preferred consultant is bringing new areas of expertise to your business; the work related to the Business Growth Grant is not part of the ordinary operations of your business; and how the activities will build identified capabilities in your business. 3.4 What improvements are eligible In the report or plan, Business Advisers or Business Facilitators will recommend a range of improvements. The improvements that are eligible for the Grant fall under one of the following areas: Business area Strategic business Issues Human Resources Issues Example improvements Formulating and implementing business goals, models and strategies Supply chain integration and management Corporate governance issues (i.e. board structures) Developing formal business plans and review of business model Developing business development strategies and sales plans Developing key performance indicators Developing strategic partnerships and collaborations Developing product/service commercialisation plans Strategic advice on structuring and raising equity and investment Human resources and succession planning Cultural changes / change management Access to specialist skills to develop HR strategies and systems, including induction, performance management, job descriptions, remuneration, retention, skills auditing Business (customer) specific leadership training and employee development Workforce planning Customer Information Guide: Business Growth Grants Page 6 of 14
7 Business area Internal Systems Production/ Operational Marketing, Branding and Communication Financial Management Systems Exploring New Markets and Market Intelligence Example improvements Administrative processes, quality assurance and compliance Occupational Health & Safety Risk management Developing documentation and processes in internationally recognised standards, training staff in meeting these standards Scoping, consulting and training to implement a software system, social media/digital strategies, incorporation of ecommerce functionality, and website strategies Structure and factory lay-out Advice on investment in new equipment Value stream mapping (process flow) Inventory management Process improvements (Lean auditing, reducing down time, error reduction) Lean principles and practices Research and Development planning Developing time sheet systems and documentation Scoping, consulting, (possibly developing) and training to implement business specific project management software systems Marketing strategies, including branding strategies and social media/digital strategies Communication strategies, marketing plans, distribution channel management Enhancement of online capabilities for the integration of e-commerce, and Social Media Development of branding strategies and development of a brand including a logo where the design process involves concept development, design and layout, finished artwork and project management Strategic market research Sales team performance and management, customer relationships and retention, and creating a capability to respond to tenders Customer support systems including systems to record and action customer feedback Scoping, tailoring and training of management accounting systems, including Accounting systems (financial reporting/dashboards, forecasting and cash-flow management, debtor controls and credit management systems) Financial modelling in terms of developing the model for use by the business, including scoping, tailoring and training Advice on planning, directing, monitoring, organising and controlling financial resources Identification of new markets, sector analysis and market development Industry research and market appraisal (eg identifying contacts, language barriers) Competition strategy (i.e. price or quality basis) Market research to assist Australian companies develop their international trading/ exporting strategies Identification of potential offshore partners or customers Support with arranging for companies to visit overseas markets eg establish itinerary Export strategy, including compliance with foreign laws and regulations Customer Information Guide: Business Growth Grants Page 7 of 14
8 Business area Environmental Sustainability Product and Service Development Mentoring/ Coaching Example improvements Tailored advice and strategies to support Improving sustainability and reducing environmental footprint Carbon pollution reduction Waste stream identification, management and reduction Water and energy efficiency tailored advice and strategies Environmental management systems Regulatory issues Sustainability auditing (including waste, energy, water and environmental footprint) Strategic Intellectual Property (IP) plans including IP protection methodology and advice and general IP advice regarding differentiation of product design Diversification and product/service innovation and development, including testing for market acceptability /product assessment and improvement for non-compliance purposes Research and Development planning Engagement of an independent and skilled business coach or mentor to build management capability tailored to the needs of the business 3.5 What improvements are not eligible The following improvements are considered ordinary every day operations of the business, and are not eligible for the grant: fees for services provided by related parties such as companies with common shareholdings or directorship with the customer, individuals, employees or immediate family related to the customer salaries for staff or the costs associated with recruitment activities in-house running expenses such as standard accounting fees, office expenses purchase of plant and equipment or the costs of relocating machinery design and printing of sales promotion materials and advertising, including newsletters, brochures and other promotional material the cost of trade shows or costs associated with visiting overseas markets and trade events the costs of ISO certification or any work in registering domestic or international patents and fees or charges associated with registering intellectual property general legal advice or costs associated with estate planning or legal advice associated with this creation of Shareholders Agreements purchasing off-the-shelf software or costs of generic software associated with the administrative functions of the business normally carried out in the normal course of business (e.g. finance, administration, sales, payroll, HR, stock control, project costing etc) training or workshops in basic IT skills professional development for staff and workforce development the development of websites or basic website upgrades 3.6 How your application will be assessed The Programme Delegate will decide if an application is eligible under the Programme Guidelines. Subject to available funding, applicants that meet all the eligibility criteria will be approved by the Programme Delegate. Customer Information Guide: Business Growth Grants Page 8 of 14
9 If Programme funding is not available, information will be published on business.gov.au to advise that the Programme is closed to new applications. Your application may not be accepted, or you may be asked to provide more information, if: only one consultant proposal is submitted; the proposal is not in line with your Activity recommendations; there are concerns about the quality of the proposed consultant or project; a conflict of interest exists; the improvements are ineligible, or the proposal does not represent value for money. If you have any questions about your application: talk to your Business Adviser or Business Facilitator; call the contact centre on ; or contact us through the us form on the business.gov.au website. You will be contacted by with a response within 15 working days of submitting a complete application. 3.7 If your application is successful Grant Agreement If your application is successful, you must enter into a Grant Agreement with the Department of Industry and Science, acting on behalf of the Commonwealth. A sample Grant Agreement is available on business.gov.au. You will have 21 days from the date of offer to sign and return the Grant Agreement. Once the Grant Agreement has been executed by the department, a copy will be returned to you for your records. The offer may be withdrawn if the Grant Agreement is not executed within this time. You must not commence, or pay for the project, in part or full, (including paying for or attending courses) until a Grant Agreement is signed by both parties. Once you have received a copy of the executed Grant Agreement, you must agree on a start date for each project with the consultant(s). Once the Grant Agreement is executed, you will have a maximum of 12 months to complete the project(s) however, the Grant Agreement will identify the approved project(s) completion date(s) How the grant will be paid The Grant will be paid as each project listed in the Grant Agreement is completed. The Grant will only reimburse consultant costs that are directly related to the implementation of recommendations. Your Business Growth Grant will be paid once you have: completed the project; paid all project costs to the consultant; and submitted claim documentation (Business Growth Grant declaration form, consultants invoices and proof of payment to the consultant) to the department. This means your business must first pay all project costs, and you will only receive your Business Growth Grant if: Customer Information Guide: Business Growth Grants Page 9 of 14
10 a Grant Agreement is in place that is signed by both parties; your project(s) are completed (payment will be made at the completion of each project); and the consultants have been paid Project Variations We recognise that unexpected events may affect project progress. In these circumstances, you can request a project variation, including: changing project consultants changing project milestones extending the timeframe for completing the project an increase to the agreed amount of grant funds. If you want to request changes to the Grant Agreement, you must put them in writing before the Grant Agreement completion date. We will not consider changes after the Grant Agreement completion date. 3.8 If your application is unsuccessful If you are not approved for a Business Growth Grant you will receive notification outlining why your application was not successful. 3.9 Tax Obligations Grants are subject to the Goods and Services Tax (GST). Grant payments are increased to compensate for GST payments. Grants are treated as assessable income for taxation purposes, unless exempted by a taxation law. We recommend you seek independent professional advice on your taxation obligations. We do not provide advice on tax. 4 Other things you should know 4.1 Conflicts of interest The Department maintains procedures for managing conflicts of interest for staff within the Department, technical experts and other third parties involved in the management, assessment and evaluation of the Programme, applications and the delivery of activities. Conflicts of interest will be managed in accordance with these procedures. A conflict of interest can arise in situations where a person has an interest or relationship, whether real, perceived or potential, that conflicts with a duty they hold or where they have a role that conflicts with another role. For example, a conflict of interest can exist if there is a conflict between: a person s duties, roles and responsibilities under the Programme; and their private interests (where these interests could inappropriately influence the way they manage the Programme). A real (or actual) conflict of interest exists when a person s private interests or their programme duties, roles and responsibilities could improperly influence how they manage, assess and evaluate the Programme. Customer Information Guide: Business Growth Grants Page 10 of 14
11 An apparent (or perceived) conflict of interest exists where it appears or is perceived by a third party that someone s private interests or their Programme duties, roles and responsibilities could improperly influence how they manage, assess and evaluate the Programme, even if a real or actual conflict has not, or cannot, be established. A potential conflict of interest exists when someone has a private interest and an actual conflict of interest could arise if they make any decisions related to the Programme. 4.2 How we manage conflicts of interest The Department s procedures for managing conflicts of interests by its employees are in accordance with the requirements of the APS Code of Conduct (section 13(7) of the Public Service Act 1999 (Cth)), the Public Governance, Performance and Accountability Act 2013 (Cth) and the Public Governance Performance and Accountability Rule Our conflict of interest policy is published on the Department s website. Industry Partners, Business Advisers and Business Facilitators must identify to the Department any actual, perceived or potential conflicts of interest they believe will or may arise during the delivery of the Programme and, where a conflict is identified, specify how that conflict will be addressed and monitored to ensure it does not compromise the outcomes desired of the Programme. If the Minister cannot make a decision under the programme without a conflict of interest arising, the Parliamentary Secretary will become the final decision maker. 4.3 Use and disclosure of information Unless the information provided to the Department is Personal Information or Confidential Information the Department may disclose the information to any person for any purpose directly related to the activities and functions of the Australian Government, including but not limited to the purpose of: announcing the awarding of grants (where applicable) improving the effective administration, monitoring and evaluation of this or other Commonwealth programmes conducting research within the Department or another Commonwealth agency. 4.4 Protection of information The use and disclosure of information provided to the Department and Advisers is regulated by the relevant provisions and penalties of the Public Service Act 1999 (Cth), the Public Service Regulations, the Archives Act 1983 (Cth), the Privacy Act 1988 (Cth), the Crimes Act 1914 (Cth), the Criminal Code Act 1995 (Cth) and general law. 4.5 Confidential and Personal information The Department will treat your information as Confidential Information if the information is clearly identified as confidential and the information has the necessary quality of confidence (that is, it must be significant information which is private and not already in the public domain). Information that is, or becomes public knowledge (other than by breach of any confidentiality obligation) will not be considered to be Confidential Information. Customer Information Guide: Business Growth Grants Page 11 of 14
13 4.8 Protection of information by Business Advisers and Business Facilitators Business Advisers and Business Facilitators are employed by Industry Partners and are not employees or agents of the Commonwealth. However, Industry Partners are bound by agreements with the Commonwealth that require the Industry Partners to: keep (and ensure Business Advisers and Business Facilitators keep) your Confidential or Personal Information confidential not disclose (and ensure Business Advisers and Business Facilitators do not disclose) Confidential or Personal Information to any parties other than the Commonwealth, as required by law or as strictly necessary in connection with legal proceedings, or with your consent not do any act or engage in any practice that would breach an APP and comply with the APPs as if it were an agency under the Privacy Act 1988 use Personal and Confidential Information provided by the Department only for the purposes of performing its obligations under the agreement with the Commonwealth (and to ensure Business Advisers and Business Facilitators do the same). 4.9 Freedom of information All documents created or held by the Department in relation to the Programme are subject to the FOI Act. Unless information is exempt, it will be made available to the general public if requested under the FOI Act. The Department will consult with you before any documents are released under the FOI Act. All Freedom of Information (FOI) requests are to be referred to the FOI Coordinator in the Department. Decisions regarding requests for access will be made by an authorised officer in accordance with the requirements of the FOI Act Information storage Any information obtained will be stored and held in accordance with the Department s obligations under the Archives Act Public announcement Successful projects may be publicly announced by the Minister and/or Department and details of the announcement may include: the name of your business the title of the project description of the project and its objectives the amount of grant funding awarded (where applicable). Details of successful projects will also be published on the Department of Industry and Science 1 website. 1 Customer Information Guide: Business Growth Grants Page 13 of 14
14 6 Feedback The AusIndustry Customer Service Charter is available at business.gov.au. AusIndustry uses customer satisfaction surveys to improve its business operations and service. AusIndustry is the specialist programme delivery division within the Department. It delivers a range of industry and innovation programmes and also provides the core delivery mechanisms for the single business service including governance, programme design and best practice. If you have a complaint, call the contact centre on or contact us at business.gov.au. Your complaint will be referred to the appropriate manager. If you are not satisfied with the way your complaint is handled, you can contact: Head of Division AusIndustry Entrepreneur Development GPO Box 9839 CANBERRA ACT 2601 You can also contact the Commonwealth Ombudsman 2 with your complaint (call ). There is no fee for making a complaint, and the Ombudsman may conduct an independent investigation. 2 Customer Information Guide: Business Growth Grants Page 14 of 14
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