Government grant experts have criticised Opposition Leader Tony Abbott’s vow to kill off the Government’s $50 million-a-year Enterprise Connect program, saying it is just starting to gain traction with medium-sized companies and deliver real benefits to growing firms.
Greg Boundy, chief executive of South Australian grants advisory group Innovate SA, which is a formal partner of the Enterprise Connect, has also labelled Abbott’s decision as “ironic” given the Enterprise Connect program was originally born from a Howard Government scheme.
Enterprise Connect was established in mid-2008 and offers businesses with more than $1 million in turnover the chance to access advisory services, including a free business review and subsidies for companies to employ consultants (up to $20,000 a year in assistance) and researchers (up to $50,000 a year in assistance).
The program also includes specialist industry-based innovation centres for sectors including manufacturing, defence, clean tech and the creative industries. There are 12 Enterprise Connect centres around the country.
Abbott says abandoning the Enterprise Connect program and “amalgamating” it with AusIndsutry will save $101.6 million over the next four years.
The cuts are part of $1.2 billion worth of savings announced by Abbott and his Treasury spokesman, Joe Hockey.
However, grant experts are unimpressed with Abbott’s decision.
Adrian Spencer from Melbourne-based consultancy firm Grants Ready says he has directed a number of clients towards Enterprise Connect and says it allows businesses to develop real growth strategies.
“We’ve found that it’s been beneficial. So many businesses are busy doing the day to day things that they don’t have the time to step back and take a helicopter view of their business,” Spencer says.
“It’s all about efficiency and productivity and that’s going to lead to more jobs creation.”
Spencer admits that the program has taken some time to build up a strong profile among the business community, but says this is common with most grant programs.
“They take time to get awareness. A program needs to be around for a year or two before businesses really get to know a grant.”
Greg Boundy agrees with Spencer that the Enterprise Connect program is doing well after a slow start.
“As the program has evolved is has gained traction after the early days where it may have lacked a bit of clarity,” he says.
“We’ve certainly found the program to be of benefit in SA, particularly because of the way that it is targeted.”
Boundy admits he was surprised with Abbott’s pronouncement.
“It just seems odd when a lot of the programs were started under the Howard Government.”
Spencer is also dismayed with Abbott’s plan to cut the $40 million Retooling for Climate Change program, which was aimed at helping manufacturers adopt greener business practices.
“I think it’s a great grant. The problem is that there just hasn’t been enough uptake because the manufacturers just don’t know it exists,” he says.
“I would love to see that program stay around and the same goes for Enterprise Connect.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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