As we navigate through the dynamic changes in the business landscape, we at Gainpoint have been keeping a close eye on the changes in the Export Market Development Grants (EMDG) scheme, especially the transition to EMDG 2.0. With Austrade wrapping up their feedback process on the operational review, we find it timely to share our insights and what the future potentially holds for businesses as we approach Round 4 of the EMDG 2.0.
The Reality Behind EMDG 2.0
The transformation of the EMDG scheme was undertaken with an aim to streamline processes and encourage businesses to independently manage their grant applications. Despite successfully drawing in small exporters, with 89% having a turnover less than $5 million, there exists a disparity between the budget allocated and the overwhelming number of applications received, a situation exacerbated by a considerable number of applicants applying for the maximum grant amount.
An evident outcome has been the continual reliance on consultants, with over two-thirds of businesses seeking guidance to comprehend and steer through the EMDG’s intricacies, a scenario quite distant from the initial vision of reduced consultancy dependence.
Gainpoint’s Perspective and Foresight
At Gainpoint, we had anticipated several issues which have now been recognised by Austrade. We harboured a sceptical view of the transition, apprehensive about the adequacy of the addressed changes and the envisioned self-reliant application process. We foresaw, albeit slightly self-servingly, that reducing the role of consultants might not be the solution and had concerns regarding the projected funding discrepancies.
What Lies Ahead: Predictions for Round 4
As we eagerly await the detailed outcomes of the review, we speculate potential strategies that might be introduced to refine the EMDG scheme for the upcoming rounds, based on the feedback survey queries. These could encompass the introduction of a minimum business turnover threshold and revisiting the matching contribution model.
Moreover, there is the potential for a heightened focus on specific industries, aligning with the government’s six priority sectors, namely Advanced Manufacturing, Cyber Security, Food and Agribusiness, Medical Technologies and Pharmaceuticals, Mining Equipment, Technology and Services (METS), and Oil, Gas, and Energy Resources. It’s also plausible that businesses engaging with markets or regions earmarked as priorities in the Government’s trade policy agenda might receive preferential treatment. Additionally, there could be an emphasis on prioritising Indigenous-owned businesses, fostering a landscape of enhanced inclusivity and diversity.
We genuinely hope that the feedback process opens avenues for additional funding to be channelled into the scheme, to ensure it meets its foundational objective of fostering Australian businesses in the international market, effectively and sustainably.
Round 4 Recommendations
The review has highlighted potential pathways to enhance the program’s effectiveness. These include limiting grant agreements to shorter periods, refining administrative processes to lessen pressures on SMEs, and streamlining application templates to facilitate ease of use.
Your Reliable Partner in the Journey
Despite the initial bumps on the EMDG 2.0 road, we remain your steadfast ally, leveraging our expertise and insights to guide you through the evolving landscape with a critical yet optimistic lens. At Gainpoint, we are not just consultants, but trusted advisors who are equipped and ready to help you adapt and thrive amidst the changes.
Conclusion
As we forge ahead into the potentially turbulent waters of EMDG 2.0’s future, having a reliable and experienced team like Gainpoint by your side can undoubtedly turn the tide in your favour. We welcome businesses to reach out to us and leverage our deep understanding and foresight as we sail together towards success in the EMDG 2.0 landscape.