Just got this from New Zealand Trade & Enterprise. Welcome news, as it has historically been very difficult to get assistance with sales and marketing in new markets.

The government has released the new budget this afternoon. Part of this new budget is a change to the Enterprise Development Grant ‘Market Development’ component (EDG-MD) scheme. The EDG-MD scheme is to receive a substantial increase in funding next financial year, which starts in July. The annual funding for the scheme will increase from $6.1 million to $25.9 million.

How does the grant work?

The ‘Market Development’ component of the Enterprise Development Grant provides financial assistance for New Zealand businesses to undertake international market development activity.

Specifically, this fund covers up to 50 percent of a firm’s eligible market development expenditure that is related to developing new markets and improving current market positions offshore. Eligible projects include market visits, in-market representation, advertising/promotion/marketing collateral, exhibiting at trade fairs and events, and some market research. For a more detailed list of eligible activities please see attached pdf file.

Companies need to be undertaking a new market development strategy or a strategy in a new market; the fund cannot be used for business as usual. Retrospective costs (i.e. costs incurred by the applicant prior to the completed application being received and accepted as complete by NZTE) are not eligible. For a more detailed list of ineligible activities please see attached pdf file.

How much funding can applicants apply for?

A company can apply for up to $100,000 per July-June financial year in eligible costs, which the firms must match. As a minimum, the smallest amount a firm in the scheme must spend on its eligible market access activities is $40,000 – of which $20,000 may be reimbursed by NZTE under this scheme.

When can businesses apply?

From July 1 application details will be available from NZTE’s website (www.nzte.govt.nz/edg). Firms that are in the standby pool from the last round of applications will be contacted by NZTE and given priority.

Media release