Business grants for Kiwi businesses
Many businesses owners look for grants or ‘free money’ to start, or boost their businesses. But grants from government or other organisations are few and far between, and where they do exist, they generally require an equal (50/50) investment from the business owner.
Unless you’re a Māori business owner, into research and development (R&D), or have an established business and are looking to expand into international markets, there’s not much in the way of grant funding available for businesses in New Zealand.
On this page:
- Grants for specialist R&D companies
- Grants for branching out into international markets
- Grants for Māori-owned businesses
- Other funding options
Grants for specialist R&D companies
For businesses at the cutting edge of technology and innovation, TechNZ, the Foundation for Research Science and Technology’s business investment programme in innovation for business growth, is an option. The programme is designed to support companies and people undertaking research and development projects that result in new products, processes or services. They consider proposals for grants of between $30,000 and $100,000.
In addition, New Zealand’s 2010 budget has allocated additional money to research so the options could be greater in this field. The Ministry of Research Science and Technology offers a number of grants that can be used by research and development or technology-based businesses, including the funding of infrastructure development to support R&D.
Grants for branching out into international markets
New Zealand Trade and Enterprise (NZTE) have a number of support programmes designed to help established businesses expand into the export market. The grant programme, the International Growth Fund, has a budget of about $30 million to support businesses assessed by the NZTE as being most likely to contribute to New Zealand’s long-term growth.
Businesses that receive funding via the International Growth Fund will need to at least match the level of investment that NZTE makes through the fund.
Grants for Māori-owned businesses
Māori-owned businesses who meet the requirements of Te Puni Kōkiri could be eligible for funding or other forms of assistance through the Māori Potential Fund.
In the 2010 budget, an additional $4.5 million has been allocated to increase Māori productivity and export growth, and to support Māori innovation. And a further $4.5 million was set aside for initiatives currently being developed to strengthen and promote Māori tourism.
Other funding options
The New Zealand government has a grant scheme designed to kick start domestic biodiesel production, and allows for grants of up to 42.5 cents per litre to biodiesel producers, but other grants are limited. This means that most businesses in New Zealand will need to consider other funding options.
This can range from a bank loan, to business angel investors, to finding a venture capitalist to fund your business. The option you choose will depend on the amount of money you need and the nature of the idea you have come up with, as well as its feasibility.
The NZTE Escalator programme can assist with business advice and funding from $100,000 to $5 million, and the bizAngels Investment Scheme is an option for businesses seeking less than $5 million in funding. They offer a mechanism to connect businesses with potential funders that meets the Securities Act requirements.
This information is provided by Business.govt.nz.
