Changes to export grants and funding

The Ontario Chamber of Commerce’s Global Growth Fund is no longer accepting government funding applications. Both programs managed through the program, including the Export Manager Program (EMP) and Export Market Access (EMA), are fully subscribed and not likely to re-open under these naming conventions. While provincial funding programs for export initiatives may be accessible in the future, businesses are encouraged to direct all existing funding applications towards federal export grants.

From 2014-2016, Export Market Access helped 423 Ontario companies generate $89 million in export sales by de-risking popular export market entry strategies.

In the absence of these two funding programs, businesses are encouraged to apply for federal grants and incentives instead. While nothing is available federally to replace the Export Manager Program, companies looking for marketing and trade show support should explore the CanExport and AgriMarketing programs. CanExport is generally open to most businesses with 1-500 full-time employees, and AgriMarketing is only open to agriculture and agri-food businesses with fewer than 250 employees.

Export Manager Program and Export Market Access

The recent closure of the Export Manager Program (EMP) and Export Market Access (EMA) came as a surprise to many Ontario businesses who’ve tapped into the programs. EMP encouraged the hiring of an experienced export professional who could help spur revenue in foreign markets and EMA supported hundreds of businesses to reach new markets each year. Together, these programs strengthened the ability of businesses to succeed internationally.

Applications will no longer be accepted for either program, and applications that were in review are likely to be rejected. Previously approved projects will still have access to funding and need to report their outcomes once the project is complete.

Export Manager Program (EMP) Grants

The Export Manager Program provided funding for hiring an Export Manager or International Business Development Manager to help develop a business’ international revenue streams. Applicants could receive up to 50% of the new hire’s salary to a maximum $40,000 per year for a maximum of two years, offering a total value of up to $80,000 per company.

Export Market Access (EMA) Grants

The Export Market Access program helped businesses participate in trade shows, develop marketing tools for foreign audiences, perform market research, and bid on foreign projects. Applicants could receive up to 50% of eligible project expenses to a maximum $50,000 per application, and companies could apply twice per 12-month period to a lifetime maximum $250,000.

CanExport and AgriMarketing funding programs are open

Although those two Ontario government funding programs no longer accept applications, there are Canadian government grants for exporting that can provide similar support. The CanExport and AgriMarketing programs are very similar to the Export Market Access program, which makes it easier to pivot your EMA project towards available export grants.

CanExport Grants

The CanExport program is a government funding mechanism that supports export marketing projects including participation in trade shows and government-led trade missions. A wide range of businesses can access its funding to target international markets where less than $20,000 or 10% of total international sales have been generated over the previous 24 months.

Through the CanExport program, companies may access up to 25-50% of trade show costs to a maximum $50,000 per project. Up to two applications can be submitted per government fiscal year to a maximum $99,999.

To qualify for CanExport funding, companies must maintain 1-500 full-time employees, not be in the agricultural or agri-food sector, earn annual revenues of $100k to $100M, be federally incorporated, and generate eligible project expenses of at least $20k.

AgriMarketing Grants

AgriMarketing is like CanExport in terms of the projects it offers funding towards, but the type of applicant it seeks is quite different. The program supports food and beverage businesses performing international expansion projects, including trade shows and related marketing activities. As part of the Canadian Agricultural Partnership suite of funding programs, AgriMarketing manages a pool of funding that will last until 2023.

Through the AgriMarketing program, Canadian agri-businesses may receive up to 50% of project costs to a maximum $50,000 per year. Businesses may apply multiple times to a maximum $50,000 annually or $250,000 over the program’s lifetime.

To qualify for AgriMarketing export market development grants, agricultural producers and processors must perform prior market research to identify an opportunity-rich target market, maintain fewer than 250 employees, and earn less than $50M in annual revenue.

Get help with export grants and funding for global expansion

The Canadian government funding landscape is constantly evolving. For many business leaders, this creates confusion and can impact project plans. Through interactive business funding events, Mentor Works helps clarify government funding trends and can show your business additional grants and loans that can help support your strategic projects.

To learn more about export grants and additional business expansion opportunities, register for a Canadian government funding event.

Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.

2018 was quite an eventful year for the popular CanExport funding program. Earlier in the year, it was updated to re-align the amount of funding available per application and the eligibility criteria for target export markets. By the end of 2018, it was updated again to further expand applicant eligibility criteria and enable more businesses to qualify for export funding.

CanExport now accepts Canadian government funding applications from businesses with 1-500 FTE employees and $100k-$100M in annual revenues. Under the program’s expanded eligibility criteria, both large and small companies previously ineligible for funding can now be considered.

Previously, only Canadian businesses with 1-250 FTE employees and $200k-$50M in annual revenues were eligible for export funding. The expanded funding will help more firms across Canada develop international markets and diversify revenue streams.

CanExport Applicant Eligibility Criteria Updates

Since CanExport was established in 2016, it’s helped more than 1,000 businesses perform exploratory export market development projects. This has led to more than $375 million in new exports and helped businesses to gain market share across the world. In fact, 42% of CanExport recipients successfully generated export revenues in the market(s) they accessed funding to explore.

Due to this overwhelming success and increasing demand from Canadian businesses, the CanExport program was updated twice in 2018. The first update adjusted how much funding can be awarded per project, while also providing greater context on which export markets are eligible.

The current and most significant update to CanExport will lead to even more businesses accessing export marketing grants. Due to a CanExport funding top-up in Summer 2018 and additional funds provided through the Fall 2018 Economic Update, the program seeks a wider range of applicants than ever before.

CanExport now accepts applications from businesses with 1-500 full-time equivalent (FTE) employees and $100k-$100M in annual revenues.

The increase in CanExport’s funding pool will help more high-quality export projects receive funding. This includes projects submitted from smaller applicants ($100k-$200k in annual revenues) and larger applicants ($50M-$100M in revenues; 250-500 employees) that were previously ineligible. These companies that now qualify for funding should explore the program further and discover how much they can receive in export grants.

What is the CanExport Funding Program?

CanExport is an international market development grant that helps companies expand into countries where limited to no revenues have been collected in the previous 24 months. Funding is commonly used to participate in an international trade show, provide on-site translation services while at the trade show, translate marketing materials, and perform market research.

The CanExport program provides businesses up to 50% of eligible project expenses to a maximum $50,000 per application and up to $99,999 per year.

To qualify for the program, applicants are advised to propose a high-impact export marketing event that is likely to lead to increased international sales. Applicants must plan to further develop that market post-trade show and deliver post-project updates to demonstrate its effectiveness. Additional eligibility criteria apply; please see Mentor Works’ CanExport Eligibility blog for a more extensive look at the program’s applicant, project, and expenses eligibility factors.

How to Access Export Market Development Funding via CanExport

To get started with CanExport funding, business leaders should start by selecting an upcoming international trade show that they intend to participate in, build a budget for the event, and forecast the intended outcomes (leads, clients, revenue) that would make the project a success.

Once there is a well-established project plan, companies should develop and submit a comprehensive funding application that reviews the strengths and opportunities the project addresses, as well as a rationale for how much funding is required. These details are critically reviewed by the program and only strong projects with clear benefits will receive approval.

Applications can be submitted to CanExport throughout the year; companies are advised to apply well in advance of the international event to ensure the application is processed by Global Affairs Canada in advance of incurring eligible expenses. It typically takes six to eight weeks for application approval.

Upgrades to CanExport and Export Market Access

This past year, both CanExport and EMA have received notable upgrades to improve the value they can bring to businesses.

Mid-2018 program updates for CanExport include vital changes to the limit of funding that businesses can access per application and expanding the export markets criteria for where projects can take place. Likewise, Export Market Access’ updates include an increase in potential funding per application, additional project/expense areas, and the merging of Early-Stage Exporters (ESE), a funding program for startups that offered grants for smaller exporters.

CanExport Funding: Program Updates in 2018

CanExport is a Canadian government funding program that supports export development projects. Through the program, Canadian businesses can offset costs associated with marketing activities in undeveloped or under-developed markets where opportunities for growth exist. The program allows Canadian businesses to obtain funding to obtain translation services, perform market research, participate in an international trade show, and adapt marketing materials for foreign audiences.

CanExport offers up to 50% of eligible project expenses to a maximum $50,000 per application. Companies can submit multiple applications to a maximum of $99,999 per government fiscal year.

Recent changes to the program include:

1. Adjusting the amount of funding provided per project; and
2. Expanding the eligibility of export markets considered for funding.

CanExport: Amount of Funding Provided

Previously, CanExport applicants could receive up to $99,999 per application. This was also the maximum a company could receive per year, and if necessary, companies could submit multiple applications to access this amount. A limited amount of companies reached this maximum, however, since it required project expenses of over $200,000 and most businesses used the program exclusively to offset trade show expenses.

After the program’s recent changes, CanExport will now support applicants with up to $50,000 per application. Companies can still apply multiple times per year to reach the annual maximum of $99,999 in grants for export market development.

CanExport: Eligibility Criteria of Export Markets

Prior to the 2018 enhancements, CanExport applicants were required to choose a target market where they had not exported or generated profits within the last 24 months. This restricted the possibility of expanding into high-growth-potential markets, which is why the rule has been revised to allow under-developed export markets to be included.

CanExport will now support projects focusing on markets where the applicant had less than $20,000 in annual sales, or derived less than 10% of their total international sales, in the last 24 months. Several target markets can be included in a single application, however, each application included for government funding consideration must be either a new or under-developed market as defined by the assigned criteria.

Export Market Access (EMA) Funding: Program Updates in 2018

The Export Market Access program is an Ontario government grant uniquely positioned to help companies enter or grow in global markets. Through the program, businesses can exhibit at trade shows, execute marketing campaigns for foreign audiences, upgrade e-commerce capabilities, secure temporary in-market office space, and perform market research.

Export Market Access offers up to 50% of eligible project expenses to a maximum $50,000 per application. Companies can apply twice per 12-month period.

Recent changes to the program:

1. Changing the amount of funding provided per project, per year, and per company;
2. Updating eligibility criteria support for early-stage businesses; and
3. Expanding and clarifying support for new eligible project activities.

Export Market Access: Amount of Funding Provided

The Export Market Access program has increased its maximum funding request per application to $50,000, up from its prior maximum amount of $30,000. Ontario companies can apply up to twice per year until they reach their lifetime maximum contribution of $250,000.

Export Market Access: Eligibility Criteria

Export Market Access and Early Stage Exporters have merged into one program to streamline the funding administration and application process. The updated EMA program now supports both early-stage businesses that can show established revenue models, as well as mature companies that are exploring international opportunities. Prior to the merging of the two programs, EMA had focused only on mature companies.

In addition, accessing EMA grants for export development now requires companies to be incorporated for a minimum two years, have 3-500 employees, and generate $300,000+ in annual revenue.

Export Market Access: Supported Project Activities

Revised EMA program guidelines have expanded to include additional eligible activities such as securing temporary in-market office space, conducting in-market research, and upgrading e-commerce capabilities.

Applicants can include up to three activities per application. This includes exhibiting at foreign trade shows where company representatives can develop new leads and gain brand exposure with a physical presence.

Apply for CanExport and Export Market Access International Expansion Grants

If your business is ready to develop new markets or expand existing ones, consider using the CanExport or Export Market Access (EMA) program. These government funding programs accelerate export projects by offsetting a portion of project expenses and allow companies to strengthen their market development plans.

In March 2018 the Canada-Ontario Job Grant (COJG), a useful training grant for Ontario employers, announced several changes. Among the most significant is an increase in the number of businesses who can consider themselves a “small employer”. This will allow those businesses to receive a higher percentage of training project costs than the previous version.

The Canada-Ontario Job Grant is a government funding for training program that offsets third-party employee training expenses. Employers can select training that meets their workforce development needs and choose the individuals who participate in the training.

Effective immediately, COJG funding offsets 50-83% of businesses’ training costs to a maximum $10,000 to $15,000 per trainee.

Another notable change to the program through 2018-2019 is that a sizeable portion of the government’s budget will be devoted to funding consortium groups. Consortia training, defined as two or more employers being trained as part of the same program, seeks to attract smaller employers and industry associations.

2018-19 Changes to the Canada-Ontario Job Grant

The Canada-Ontario Job Grant has been enhanced through its 2018-19 guidelines. In light of of these changes, employers should review how much support their upcoming training project may receive and ensure their training is still eligible for government funding.

Update to Employer Size and Contribution Amounts

This year’s guidelines introduce new criteria for defining small and large employers. Since the size of an employer is an important factor in determining how much funding a project qualifies to receive, this is a significant change that applicants should be aware of:

Small Employers

• More employers will qualify as a small employer due to the threshold being increased from <50 to <100 employees.
• The standard contribution rate for small employers is 5/6 (83%) of training costs to a maximum $10,000/trainee.
• By hiring and training unemployed individuals, small employers may qualify for up to 100% of training costs to a maximum $15,000/trainee.

Large Employers

• Large employers are now defined as having 100+ employees.
• The standard contribution rate for large employers is 1/2 (50%) of training costs to a maximum $10,000/trainee.
• Large employers do not qualify for increased contributions by hiring and training unemployed individuals.

Update to Consortium Training

Although consortium training has previously been supported through the Canada-Ontario Job Grant, the provincial government has introduced some significant changes to this stream of the grant.

The program’s budget has been structured so that consortium training projects can be prioritized and awarded more than in the past. This is great news for companies that can benefit from similar training projects as other firms.

So how does it work?

Consortium application requires a lead applicant, which could be one of the organizations enrolling training, the training vendor, or another party such as industry associations and other organizations that have a mandate to support multiple companies.

These “lead applicants” are expected to coordinate training by communicating with businesses to formalize a plan for who’s being trained, and collecting fees from each business to ultimately pay the training provider. They’re also responsible for submitting a government funding application on behalf of the consortium.

The same funding contribution levels apply as they do to single employers. However, funding is awarded based on the largest training participant involved. So, if one company in the training consortium has 100 or more employees, the training cost is subject to a 50% contribution rate to a maximum $10,000 per employee. If all companies participating in the training have fewer than 100 employees, the consortium is eligible for up to 83% of eligible expenses.

This option is often the most cost-effective training method businesses can engage in because they share training costs among members of the consortium. There is typically some incremental cost increase per trainee added into the program, but this pales in comparison to the cost of training if each employer purchased their own training program.

Employer Eligibility

To receive COJG funding, employers must:

• Maintain operations in Ontario
• Provide cash contributions to pay non-grant covered training costs
• Abide by the Occupational Health and Safety Act and the Employment Standards Act
• Have sufficient Workplace Safety and Insurance Board (WSIB) or private workplace safety insurance.

Training Eligibility

The Canada-Ontario Job Grant also maintains specific criteria to evaluate the eligibility of training programs. To access COJG grants, training must:

• Take place in Ontario
• Be led by a qualified third-party training provider
• Deliver training that directly related to a business’ needs
• Not exceed one year in duration

How to Apply for COJG Training Grants

To receive COJG funding for an upcoming training project, employers must submit a comprehensive application package consisting of a company overview, detailed training plans, and multiple vendor quotes. Typically, applications are reviewed within 2-4 weeks.

To discuss your business’ eligibility and learn how to optimize the application process, please contact Mentor Works.

The Strategic Innovation Fund (SIF) is a new $1.26 billion Canadian government funding program supporting the improvement and advancement of groundbreaking products, processes, and services. The five-program (2017-2021) was created to fuel the growth of Canadian businesses and facilitate innovation in Canada.

SIF plays a critical role in driving Canada’s industrial and technology-driven sector growth. It focuses on accelerating innovative, business expansion projects, which benefits companies, and helps secure competitiveness in both regional and national economies.

Eligible Canadian exporters may be able to reduce project costs by up to 50% to a maximum $50 million in government funding.

How the Strategic Innovation Fund Supports Businesses

The Strategic Innovation Fund is a government funding program targeted towards Canadian industrial and technology-related companies. It offers financial contributions (either repayable or non-repayable) valued up to 50% of project costs to a maximum of $50,000,000. The purpose of this fund is to promote investment into the types of activities driving sustainable productivity and economic benefits. SIF has four streams of project funding support.

Stream 1: Research, Development, and Commercialization

Stream 1 offers funding for the research, development, and market commercialization of innovative technologies. All activities performed must focus on progressing the innovation’s development, which may have a current technology readiness level (TRL) of 1-9. Projects may include (but are not limited to):

• Researching and testing the market potential of an early concept or finding;
• Adapting research for commercial applications with the potential for market disruption;
• Improving processes (by using new technology) to reduce the environmental footprint of production; and
• Improving current products/processes by implementing new technologies aimed to enhance competitive capabilities.

Stream 2: Business Growth and Expansion

Stream 2 provides innovation funding for the expansion and material improvement of existing industrial or technological facilities. Activities should increase productivity and efficiencies, ultimately leading to higher competitiveness. At this stage, businesses should have well-developed products and processes and be performing activities within a TRL of 8-9. Projects may include (but are not limited to):

• Increasing production capacity to meet a demonstrated market demand; and
• Improving manufacturing efficiency through improvements to plant, equipment, or processes.

Stream 3: Investment Attraction and Retention

Stream 3 supports new investments in Canadian industrial or technological facilities. The main objective is to support large-scale investments that may have not otherwise been made in Canada. These investments will be used to support the continued development of Canada’s most innovative businesses. Companies must achieve a TRL of 2 or higher to apply; projects may include (but are not limited to):

• Establishing a new production facility, which did not previously exist in Canada;
• Receiving a research and development mandate which is being established for the first time, or was previously held outside Canada; and
• Obtaining a production mandate for products being produced for the first time, or those previously produced outside of Canada.

Stream 4: Collaborative Technology Development and Demonstration

Assisting in collaborative research, Stream 4 includes activities related to the discovery or demonstration of new knowledge. In partnership with academic institutions and non-profits, this stream provides funding for new technology-driven products, processes or services at a technology readiness level of 1-7. Projects may include (but are not limited to):

• Developing and demonstrating pre-commercial technologies; and
• Advancing new technologies into product-specific applications.

Do You Qualify for the Strategic Innovation Fund?

The Strategic Innovation Fund is inclusive towards a wide range of Canada’s industrial and technology sectors. While an assortment of businesses are eligible, funding is only awarded to firms demonstrating strong project performance metrics. All projects must clearly demonstrate how the funding will be used to generate sustainable benefits for a broad range of stakeholders.

Overall eligibility, in addition to whether funding is repayable or non-repayable, is determined by the program’s application review committee.

To be deemed eligible for the Strategic Innovation Fund, businesses must be:

• A small, medium, or large company;
• Incorporated; and
• Operating within Canada.

How to Apply for the Strategic Innovation Fund

There is a two-stage application process for the Strategic Innovation Fund requiring:

1. Statement of Interest: A high-level overview of projects. Here, applicants can describe the project and explain how it meets SIF’s objectives. Applicants are also asked to provide corporate information so basic corporate capability assessments can be completed.
2. Full Application: If advancing to step 2 is advisable, applicants will be contacted and invited to submit a detailed project application. This information is used to complete a due diligence and benefits assessment.

Given the size and complexity of Strategic Innovation Fund applications, Mentor Works recommends that interested parties use a government funding partner. This accelerates the process and helps ensure applications hit on all the factors government reviewers prioritize most heavily.

Please feel free to contact Mentor Works to learn more about SIF, and how to get started.

Often times, gaining access to new clients and partners comes down to expanding your market reach. Exporting products or services to foreign countries and establishing international partnerships could have profound benefits for your organization, but it also brings a degree of risk that must be overcome. Luckily, Canadian government grants are available to help businesses reduce the cost, and therefore risk, of market expansion projects.

There are several ways that Canadian businesses can tap into international markets, and the federal/provincial governments extend support for many of these activities. Whether your business is planning to begin exporting, or you’re an established exporter who is evaluating new markets, small business grants can accelerate market penetration and reduce the amount of time it takes to gain the profits.

Why access government grants to perform export expansion?

Successful expansion into new or existing markets relies on two factors: the strategy behind your expansion, and proper financing to confidently implement the plan. When both of these conditions are met, companies stand a good chance of seeing their project succeed.

The problem is that many companies underestimate the cost of export expansion projects, including the costs to travel to and from the market, participate in trade shows, generate marketing materials, adapt products to conform to new regulations, and find partners to help gain market share.

While a strategy may be good in theory, without access to financing, it’s impossible to actually achieve its goals. That’s why government grants can be an essential link to export success for many businesses.

If you have the right strategy and plan for export success, the government will reimburse a large portion of the expenses, therefore removing the burden of expansion and reducing the risks.

Companies should consider applying for government grants to implement any of the 3 following market entry strategies:

1. Participating in trade shows;
2. Establishing a foreign partner to commercialize the market; and
3. Training Canadian employees to identify and respond to the needs of international customers.

Finance your trade show participation in new international markets

Canadian government funding is available to support a wide range of projects related to expanding market reach. This includes the CanExport and the Going Global Innovation (GGI) programs.

A popular choice for those businesses who are evaluating their potential abroad, trade shows provide unparalleled access to consumers and strategic partners across the world. Companies can participate in trade shows themed around a specific product or service, and access industry trade shows to broaden this audience.

While not as big of an issue for medium and large companies, trade show participation can be quite costly for small businesses. Purchasing booth space and trade show passes for employees, developing booth marketing materials, and traveling costs are all expenses that may ultimately prevent businesses from participating. Thankfully, these are also expenses that can be offset by Canadian government grants.

Small and mid-sized businesses (SMEs) may receive up to 50% of eligible project expenses to reduce new market development costs with CanExport.

CanExport grants provide contributions ranging from $10,000-$99,999 to explore the viability of a new country they haven’t sold goods to in the past 24 months. This program is particularly beneficial if your business is considering expansion to markets within Europe or Asia.

Establish strategic partners to commercialize innovations

The fastest path to growth for most companies is to expand the number of customers they reach. But in order to be introduced to as many international customers as possible, it often makes sense to partner with organizations who are already fully integrated into the market.

Working with others to establish market share supports accelerated success, with less time and money needed.

Developing international partnerships can be tricky. Securing commitment from an international partner often requires travel, lodging, meals, and meeting expenses, all of which need to be incurred prior to the partnership’s solidification. This implies risk; there’s a chance that businesses can go through all of these steps and still not come away with a profitable partnership.

If your business could profit from the international commercialization of technologies, the Going Global Innovation program may cover up to 75% of eligible expenses.

Going Global Innovation grants will provide up to $75,000 towards several costs required for international travel and meetings. Companies can’t apply for research funding for current partnerships. The funding is meant to help potential collaborators meet and secure the partnership agreement through 3-4 international meetings.

Train Canadian workers to better serve international clients

Government grants are also available to support your company’s operational abilities. This is made possible through the Canada Job Grant, an initiative that reduces third-party training expenses incurred for their Canadian-based employees.

Although new market expansion is an exciting endeavour, growth opportunities may exist within export markets where you already sell. Maintaining a workforce who can communicate effectively with customers will help to exploit some of these opportunities, such as upselling or developing new highly-demanded products.

Unfortunately, third-party training can be costly when implemented across a team or business as a whole. Hiring a trainer to conduct specific courses, paying for tuition, and then affording materials can be too expensive for some firms, especially when the financial return on their training is unknown.

If your business is conducting third-party training for Canadian employees, up to 66% of costs may be recovered through Canada Job Grant funding.

The Canada Job Grant offers up to $10,000 per employee trained and will offset most costs related to the trainer and training program delivery. This training could benefit Canadian employees by helping them learn about international marketing, finance, supply chain management, and other international trade management specializations.

Develop a market expansion plan that includes government grants

The availability of specific government funding programs is largely based on a business’s location and the time of year they’re applying. Understanding the unique requirements of each program is critical to your application’s success, so it’s important to research these programs and apply for those that best fit your upcoming projects.

If you would like to confirm your business’s eligibility for any of the programs mentioned through this blog, please contact Mentor Works.

Every day, our team of Government Funding Planners work with Canadian businesses to solidify project plans and communicate deliverables to the government through application writing, submission, and reporting services.

There is more pressure on businesses to be innovative than ever before.

From technology adoption to process improvements, companies who invest in research and development projects are able to become more productive, and ultimately, more competitive on a global scale.

There are two broad options that businesses have when it comes to facilitating product or process R&D:

1. Complete the project in-house, using internal labour; or
2. Collaborate on the project with a partner using shared resources.

Given the benefits that come with collaboration, it’s amazing that many organizations choose the first option every time they have a technical or technological challenge.

Although it’s a more traditional option and may seem like a more direct way of coming up with a solution, collaborating will consistently provide better results.

Businesses use collaboration internally to solve problems more effectively. Why can’t this method of teamwork be leveraged from one business to another? There are a variety of benefits that research collaborations can have, including the following three:

1. Shared knowledge

Small and mid-size enterprises (SMEs) are rarely limited in their ability to conceptualize solutions to problems. In fact, small businesses are often the greatest source of innovation. However, their inability to commercialize solutions from start to finish can prevent good ideas from seeing the light of day.

Research and development collaborations are essential for SMEs because partner organizations can help fill knowledge gaps within your own team. Companies can share ideas, research, and a variety of skillsets to ensure that the innovation is commercialized.

2. Shared workload

Although performing R&D is essential for many businesses, it can be demanding on human resources. Large-scale research projects may require a greater portion of your team, which could affect capacity towards ongoing responsibilities or other projects. The sheer amount of work that is required may prevent some companies from performing innovative projects altogether.

Collaborative research teams that effectively use the workforce of two or more organizations significantly decrease the amount of work that is required, without compromising results. At the end of the project, your company will have an innovative solution with fewer resources required.

3. Critical analysis

Depending on the size and group dynamic within your organization, biases may exist that ultimately affect the project’s outcome. Groupthink is common within SMEs; without testing all possibilities, ideas may fail or not deliver the most amount of value possible. Critical review of all assumptions and methodologies will help to avoid this, however it can sometimes be difficult to achieve.

Working together with another organization ensures that all ideas are reviewed critically to identify potential weaknesses. If any flaws are found, ideas can be discussed and changed to strengthen the solution and develop a more valuable project.

Funding opportunities are available to fuel your innovation

Furthermore, the federal government is making a number of investments to encourage greater innovation within the economy. Lucrative government funding programs exist for businesses who are collaborating with international partners. Some of the most valuable collaborative partnership grants available now include:

Canadian International Innovation Program (CIIP)

Created to foster collaborative research and development partnerships, the Canadian International Innovation Program helps businesses find a qualified international research partner and supplies grants to offset up to 50% of project expenses.

Collaborations may receive up to $600,000 for R&D projects that involve at least one Canadian company and one research partner from Brazil, China, India, Israel, or South Korea.

CIIP grants are meant to support three types of projects, including:

• Technology adaptation: Modifying or improving existing technology to meet the requirements of a new market.
• Technology validation: Verification that the innovation’s functionality, performance, quality, or usability meets the needs of end-users.
• Technology co-development: Continued development and integration of technologies to create an innovative breakthrough.

Learn more about the Canadian International Innovation Program (CIIP).

Going Global Innovation (GGI)

The Going Global Innovation (GGI) program enables business leaders to travel to foreign markets and meet with potential partners, ultimately resulting in a collaboration agreement. Government grants are specifically targeted towards SMEs to reduce the impact of their cash flow and speed up the time to product commercialization.

Going Global Innovation export grants provide up to 75% of a business’ travel and administrative expenses to a maximum $75,000.

It’s important to note that this funding program cannot be used for partnerships that are already formed. Businesses must show that there is intent to discuss a collaboration, and that the partnership requires a trip to the foreign market.

Learn more about the Going Global Innovation (GGI) program.

Benefits of accessing Canadian government funding for international collaborations

Accessing additional project funding through government grants is just one benefit of engaging in the aforementioned programs. In many cases, there are also many more, such as:

• Commercializing innovations and bringing them to market faster;
• Reducing the risk of research projects;
• Reducing market entry barriers; and
• Providing matchmaking with knowledgeable, reliable partners.

To learn if your business is eligible for these Canadian government collaborative partnership grants, please contact Mentor Works, the Government Funding Planners.

Ontario’s aging workforce, combined with the growing need for technology in manufacturing, has created a perfect storm. Growth opportunities are available, but can’t be accessed due to diminished skillsets or physical capacity.

Before Ontario manufacturers can compete globally, they must have an agile and skilled workforce that can work with modern technology.

When this happens, industries can create more innovative products and increase production to serve global customers.

In order to develop this workforce efficiently, businesses need to invest in employee training programs.

Manufacturers across Canada have begun investing in training their workforce, but nearly 40% believe that providing formal training to employees is too expensive.

The Government of Ontario recognizes this trend and has developed a government funding program to assist the training of manufacturing talent.

By providing support to manufacturers, more employees will receive skills modernization, paving the way to greater exporting success.

FedDev Ontario Training Productivity Initiative – Up to $50,000 in business grants

Formal training to improve production processes is essential for business success. This is especially true in the manufacturing industry, where advanced computing and engineering systems are required.

Whether provided internally or through a third-party trainer, updating your employees’ skills and abilities will ensure that your business is operating with maximum productivity.

The Training and Productivity Initiative, funded by FedDev Ontario, supports these types of production-based training programs by offering government funding.

The funds are provided to offset training costs with the intent of improving productivity and export sales.

Southern Ontario manufacturers can receive up to 50% of training expenses to a maximum $50,000 for manufacturing skills development programs that:

1. Support the adaption/adoption of new manufacturing technologies, processes, or procedures to support business innovation and export expansion.
2. Support and develop a highly skilled production workforce that leads to new efficiencies or export opportunities.

For manufacturers who have already received the Training Productivity Initiative, up to a quarter (25%) of training program expenses will be paid (to a maximum $50,000), as long as you have not received funding through this program in the last two years.

If you have, you will become eligible to receive funding after the two year period has been completed.

Is your business eligible for the FedDev Ontario Training Productivity Initiative?

In order to qualify for up to $50,000 in Ontario government training grants, manufacturers must adhere by the following program criteria. In order to be approved, applicants must:

• Be a southern, central, or eastern Ontario-based manufacturer;
• Maintain between 10 and 1000 employees;
• Be in business for at least three years with financial statements for that period;
• Export their product or have plans to export as a result of the training program; and
• Have not received funding through this grant program in the last two years.

Types of training programs eligible for FedDev Ontario’s Training Productivity Initiative

Ontario manufacturers are eligible to receive this government funding for a variety of productivity and innovation boosting topics, such as:

• Engineering skills development;
• Software training; and
• Machinery or equipment training.

Find Canadian government grants to grow your business internationally

Aside from the Training Productivity Initiative for manufacturers, businesses can receive government grants and loans to support international expansion activities.

CanExport: grants for international market development

Announced earlier this year, the CanExport government funding program provides up to 50% of expenses to a maximum $99,999 in support of marketing activities for new international markets.

Small and mid-sized businesses from across Canada can use these funds to participate in trade shows, travel to prospective markets, and modify marketing materials to reflect international laws, languages, or preferences.

Export Market Access: Ontario business grants for export marketing

CanExport is often compared to a similar funding program specific to Ontario businesses, Export Market Access (EMA). Export Market Access provides up to 50% of project expenses to a maximum $30,000 per application, or $60,000 per year.

Like CanExport, EMA supports participation in trade shows and travel costs for company representatives.

Find Canadian government grants and loans to enable international expansion

The main difference between these two programs is who is eligible to apply. Businesses from across Canada may apply to CanExport, while only Ontario-based businesses may apply for Export Market Access.

Understanding this eligibility criterion for government funding is essential to successfully receiving grants and loans.

To learn more about receiving government funding for international market expansion projects, businesses can download a free white paper, the Canadian Small Business Funding Guide, to gain a better perspective on the Canadian government funding landscape.

When compared to United States’ dollar, which has improved in value over the same time period, it might appear to some that Canada is in poor economic shape.

While businesses have a reason to be cautious, a weakened dollar actually brings tremendous benefit to Canadian businesses in a variety of industries.

Among these benefits is Canadian businesses’ ability to leverage increased trade and foreign investment opportunities, which will help bring more export revenue into the economy.

United States to boost Canadian investment and exports

As the largest (and closest) export market for Canada, the United States provides significant opportunity to Canadian businesses.

Historically, when the American economy is booming and the Canadian dollar is comparatively low, American businesses look to take advantage of the exchange rate by buying more Canadian products and services.

In 2014, the United States imported 75.64% of all Canadian exports, a significant rise compared to 2009, when they only imported 73.56% of Canadian exported goods.

In the same time period, Canada has grown to export more than $400 billion annually to the USA, up from $270 billion in 2009.

Yes, you read that correctly. Canadian businesses have grown their American exports by nearly $130 billion in 5 years.

The low Canadian dollar has meant more than American businesses purchasing an increased quantity of goods, it’s been leading to investment, the most well-known of which being the automotive industry investments.

Earlier this year, American vehicle manufacturer General Motors increased its commitment to the Canadian economy by investing $560 million into their Ingersoll, Ontario plant.

These types of deals, assisted by a weakened Canadian dollar, pose a long-term opportunity for our economy and allows us to gain an advantage for the future.

How investment and manufacturing will reshape the Canadian economy

Canada’s energy resources, once the centre of the economy and exporting, have seen a significant drop and are expected to remain stagnant.

Falling oil prices around the world have meant that Canada must diversify its revenue sources and take advantage of other economic opportunities.

Value-added manufacturing has witnessed the greatest growth due to the slumping energy sector. International businesses will look to Canada for manufacturing that uses our skilled labour and advanced technological abilities.

These advantages, in addition to falling material and labour costs, will make Canada the ideal country to invest and import from.

Although this requires an economic shift from the direction Canada has gone with projects such as the Keystone XL pipeline and other energy projects, it’s an important step to make.

Early effects of a shifting economy

Canadian manufacturing statistics are revealing that demand, as anticipated, is slowly increasing for Canadian goods. As the dollar continues to weaken, international companies see more benefit in working with Canadian firms.

Unfilled manufacturing orders rose nearly 7% to $96.1 billion in September 2015, and Canada’s GDP has rose nearly 1% since this time last year.

Although this economic data is encouraging, most experts claim that it will take 2-5 years for businesses to begin to launch strategic initiatives that make use of the benefits of a low exchange rate.

Waiting reduces the risk of an exchange rate that returns to near-parity, but it may also mean missing out on major advantages.

Although it’s speculated that Canada’s currency value won’t be improving any time soon, businesses need incentives to adapt to changing economic conditions.

Technological improvements and capacity-building projects are two areas of investment which the federal and provincial governments are most active in supporting, providing a number of grants, loans, and tax incentives for businesses to access.

By making strategic investments now, Canadian businesses can ensure that they are poised for growth and success in a new economy.

Grant opportunities for Ontario SMEs

The CME SMART Advanced Technologies for Global Growth (CME SMART) is a government grant that helps Ontario small and mid-sized businesses (SMEs) take advantage of these economic conditions.

Ontario businesses may qualify to receive 35-50% of their eligible project expenses, up to $100,000 for technology assessments and implementation.

For most manufacturers, this will help to address outdated technology and processes that reduced production output.

Businesses that receive CME SMART grants will be able to expand into foreign markets or improve their ability to satisfy existing export markets’ demands with new capabilities and increased production.

Ontario businesses that use this grant will become more agile in responding to the Canadian economy and its business conditions, making them more attractive to foreign customers and investors alike.

How could this SME import export grant help your business with your current market expansion strategy?

In many ways, exporting in international markets can be easier than expanding to other regions within Canada. However, unique challenges can make international expansion quite difficult for the average business.

Challenges such as:

How do you effectively evaluate each potential market?
How do you build your supply chain and brand exposure?

There are several major areas your business will need to address to become “trade ready” and ensure you are well positioned for global success.

Experienced export researchers make a big difference

Market research can be the most difficult stage of exporting for many SMEs to accomplish. Which foreign market should you pursue and how do you do it? Due to the need to keep costs under control, many SMEs will opt to do this research internally.

Choosing an existing team member to perform these researching duties has its benefits and drawbacks. A member of your marketing team may be qualified to conduct this research, but may lack the experience of building an international marketing plan that a more seasoned Export Manager might have.

Hiring a dedicated and experienced Export Manager is an excellent way for businesses to quickly and effectively branch out into international markets.

They have the expertise to limit risks associated with export expansion, understand export strategies, and can pair your specific product lines to the culture and needs of the target market.

However, not all SMEs are able to afford a dedicated Export Manager.

Fortunately, through the Ontario Chamber of Commerce (OCC) and FedDev Ontario, the Ontario Exporters Fund (OEF) grant will assist established Ontario SMEs in priority sectors by providing 50% of an Export Manager’s salary – up to $40,000 per year – for two years.

With up to $80,000 in grant funding available for businesses to hire an Export Manager, it’s easier than ever to conduct market research and develop an export expansion plan.

Learn about your competition and target market at the same time

Participating in trade shows provides a unique opportunity for businesses to expand internationally. While the main focus of most vendors is to gain direct contacts and build a lead database, there are other significant benefits.

The forefront of these advantages is that the business owner, or representative, is able to perform competitive analysis for other brands which are growing in the same market.

This knowledge is as important as understanding the market itself, and without attending trade shows it can be difficult to conceptualize who your real competition is.

Similar to the problem faced with hiring an Export Manager, SMEs are often unable to afford such an undertaking. Not only do businesses need to travel to these foreign markets, but also need to invest in trade show related expenses and marketing costs.

Travel expenses, booth costs, creative executions, market research, and other forms of promotions can create a barrier to entry for businesses.

Export Market Access (EMA) is another Ontario government grant which is specifically tailored for priority sector businesses who wish to participate in international trade shows. SMEs can receive up to 50% of their expenses (to a maximum $30,000 per application).

Some expenses that this program will cover includes the payment of travel, trade show exhibiting costs, print and design costs for marketing materials, product certification expenses, and third party market research.

Only established businesses that reside and produce their product in Ontario can apply for this program, with 5-500 employees and at least $500,000 in annual revenue.

Expedite your export expansion

In addition to FITT’s many valuable resources for starting international trade activities, there are a couple of others that you should know about to accelerate your plans.

The free Canadian Guide to Export Expansion is a comprehensive white paper which details government publications, statistics, trends, and tools which will allow you to formulate a baseline for your international trade strategies. Feel free to ask a funding question if you’re interested in learning more about grants for your export activities.

Is exporting to international markets part of your company’s growth strategy? Will you be applying for one of the grants mentioned in this article?