It's been said that the first rule of money is to never use your own, so when there's an opportunity to grab some funding for your business who wouldn't want to squeeze the most out of it.
Get Funding, a local consulting and training firm claims that the way to do it is to focus on human resource costs.
Get Funding focuses on Inland Revenue Authority of Singapore's (IRAS) Productivity and Innovation (PIC) fund scheme. Broadly defined, PIC covers activities that increase a small or medium enterprise's (SME) productivity.
The PIC scheme allows 400 percent tax deduction on up to S$400,000 per year or 60 percent cash payouts, for investments in innovation and productivity improvements.
To qualify for the scheme, company expenditure has to fulfill six activities which include training of employees and acquisition of Intellectual Property Rights, among others.
"Most funding applications focus on computer hardware, software and training. While these are important components in productivity and innovation initiatives, they are hardly the biggest cost component or the most important factors. There is no doubt that the most important factor in a productivity initiative relies on human resource," said CEO for Get Funding Raymond Ng.
The company claims it has been able to attain up to S$60,000 worth of funding per client.
Human resource expenses are typically left out of most PIC applications, Ng added. By working these costs to their advantage, SMEs will be able to utilise government funding more holistically.
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