Competitive Business Fund
Introduction and aims
The Competitive Business Fund is a Victorian Government initiative to assist businesses to take maximum advantage of new opportunities that are emerging in the global economy.
The Competitive Business Fund supports growing and competitive businesses with the potential to move into new markets, to develop processes and solutions, or to invest further in their business in order to enhance competitiveness and capitalise on emerging opportunities.
Government grants in the order of $3 million is available in the second round of grants on a competitive basis.
Nature and level of assistance
The Competitive Business Fund provides two streams of financial assistance 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; and
- 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.
Where a Competitive Business Fund project involves multiple organisations, the lead organisation submits the application and is subject to the financial risk assessment. All participating organisations will be subject to probity checks.
Government grants may be used for:
- Investments that increase a company or supply chain’s productivity and competitiveness including, for example:
- purchase/upgrades of plant and equipment or technology
- upgrades to existing infrastructure
- improvement/enhancement of capabilities or skills
- adoption of new processes
- development of an innovative product, process or market that will generate broader benefits to the community
- mergers and acquisitions that will create sustainable growth-oriented entities
- Collaborative projects among multiple businesses that facilitate greater business growth
- Demonstration projects where knowledge is shared across industry, which leads to significant productivity improvement.
Assistance will not be provided for normal “business as usual” operations, such as meeting payroll commitments, for payment of redundancies or for organic growth.
Eligibility criteria
Competitive Business Fund applicants meeting the following criteria will be eligible for consideration:
- possess an Australian Company Number (ACN)
- be based in Victoria
- achieve a satisfactory financial risk assessment based on financial reports for the past three financial years
- agree to comply with the Department’s performance monitoring and evaluation regime
- meet the co-contribution requirement and have investigated, and/or sought funding from appropriate Commonwealth Government programs and other State Government programs where appropriate before applying to the Fund (funding from such Government programs cannot form part of the minimum co-contribution commitment).
Where a Competitive Business Fund project involves multiple organisations, the lead organisation should submit the application. All participating organisations will be subject to probity checks.
Assessment Criteria
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 small and medium sized enterprises through their supply chain engagement.
Preference may also be afforded to Competitive Business Fund applications from, or those that contribute to the department’s priority sectors, which include automotive, aviation, biotechnology, defence, energy, financial services, food, information and communications technology, international education and tourism.
Application Process
Applications for Competitive Business Fund assistance are contestable, subject to evaluation against the eligibility and assessment criteria and consideration as to whether the proposal is sufficiently strategic to be funded.
Announcement of successful applicants for Round Two grants is scheduled for June 2011. The public announcement may include details of the applicant, the value of the funding and the purpose of the funding.
Documentation
Electronic copies of the following documents will need to be submitted with the online Competitive Business Fund application form:
- Audited Financial Reports for the past three years (including Profit & Loss, Balance Sheet and notes to the accounts)
- where the Financial Report is more than six months old, a copy of the latest management or interim accounts for the current year
- company business plan incorporating financial projections (Profit & Loss and Cash Flow)
- project business plan or project feasibility study (including projections of incremental Profit & Loss and Cash Flow resulting from the project and, as applicable, forecasts of gross sales, export sales, increase or transition of employees and details of construction arrangements or contracts).
Note: Cash flow projections should include project expenditure and project funding as separate items in cash outflow and inflow. The financial projections should cover a period of at least three years or the life of the project if less than three years and should reflect the financial benefits expected to be generated from the project.
Round One Case Study -George Weston Foods and Murray Goulburn Cooperative
The collaboration of George Weston Foods – one of Australia’s largest food processing companies – and Murray Goulburn Cooperative – Australia’s largest exporter of dairy foods responsible for processing over 34 per cent of our nation’s milk – has seen a potential new international niche market uncovered for Victoria.
A Competitive Business Fund grant is supporting a collaborative pilot project between George Weston Foods and Murray Goulburn Cooperative, 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.
One of Australia and New Zealand’s largest food manufacturers employing around 8,000 people over 60 sites, George Weston Foods is the largest manufacturer of small goods in Australia and produces some of our country’s best-known brands, including Tip Top® breads.
Murray Goulburn Co-Operative is Australia’s 100 per cent farmer-owned dairy company with 2,600 dairy farmer suppliers and 2,200 employees. Its flagship Devondale brand is sold nationally and is considered a market leader in key categories.
More Information
Organisations will need to submit their Competitive Business Fund application through the online Competitive Business Fund Application Form.
Applications for Round Two close at 5pm AEST on Friday 8 April 2011.
