$3 million fund opened for Victorian SMEs

The Victorian Government has made $3 million available to small businesses as part of its Competitive Business Fund, designed to help start-ups improve their competitiveness, productivity and export potential.

Introduced in 2010, the fund supports growing and competitive businesses with the potential to move into new markets, develop processes and solutions, or invest further in their business.

Funding is allocated via one of two streams on a co-contribution basis:

Enterprise – up to $250,000 for a project involving one company, to be matched by a minimum of $3 for every $1 granted.

Supply chain – up to $500,000 for a collaborative project involving multiple companies, to be matched by a minimum of $2 for every $1 granted.

According to Louise Asher, Minister for Innovation, Services and Small Business, funding can be used to develop an innovative product, process or market, or invest in new equipment, infrastructure and technology.

“By working in partnership with business to drive new investment, these grants boost innovation, create high value jobs, and increase productivity and exports,” Asher said in a statement.

According to a spokesperson for the Minister, assistance will not be provided for normal “business-as-usual” operations such as meeting payroll commitments, for payment of redundancies or for organic growth.

“Preference may also be afforded to… the department’s priority sectors, which include automotive, aviation, biotechnology, defence, energy, financial services, food, information and communications technology, international education and tourism,” the spokesperson says.

One example from the first round of funding is a collaboration between food processing company George Weston Foods and dairy food exporter Murray Golbourn Cooperative.

According to the spokesperson, the collaboration has tapped into a new international niche market.

“[The funding is allowing the companies] to trial a value-added ingredient process in Victoria that may produce plant-based protein and fibre extractions from Australian-grown crops, for both domestic and international markets,” she says.

Proposed Competitive Business Fund projects must satisfy at least one of the following criteria:

• The potential to deliver a net economic benefit to Victoria and/or lead to sustainable increases in productivity and/or creation or transition of staff to high value jobs.

• Enable the company or supply chain to capitalise on opportunities arising from changing global economic conditions.

• Make a reasonable contribution to a region or locality in terms of employment.

• Support the growth and competitiveness of SMEs through their supply chain engagement.

Applications for this funding round close on April 8, with the announcement of successful applicants scheduled for June.