Securing a business grant can be a game-changer, providing a source of non-dilutive funding from government bodies whose primary objective is to foster business sustainability. These grants can offer the financial resources needed to propel growth, innovation, and expansion. 

However, the application process can be complex and challenging, and many businesses make avoidable mistakes that diminish their chances of success.

To help you navigate the complexities, we’ve identified the six most common mistakes applicants make – and how you can avoid them.

1. Skimping on Research & Preparation

A lack of preparation is one of the biggest missteps when applying for grants. Many applicants dive in without fully understanding the grant’s eligibility criteria, only to find out later that they don’t meet key requirements.

So, where have we seen grantees trip up?

• Most grants, including the sensationally popular Enterprise Development Grant (EDG) - New Product Development, demand businesses maintain a specific level of local shareholding. If your company is a well-funded startup raising multiple rounds of equity financing, you could inadvertently dilute ownership beyond the required threshold – potentially disqualifying yourself by the time the claims process wraps up.

• Leadership changes can also disrupt eligibility. Programs like Startup SG Founder Grant or Startup SG Tech stipulate that two Singaporean or Permanent Resident (PR) founding members must retain significant equity and decision-making roles. If a co-founder exits or investor influence overrides local leadership, the company might fall below ownership or control thresholds.

2. Shoddy Applications

A hastily assembled grant application, lacking proper care, structure, and thoughtful organization, is often immediately apparent to the reviewing grant officer. A poorly structured submission with a project scope that is well-defined, with a clear outline of your objectives, execution plan, and measurable outcomes can significantly hurt your chances right from the start.

Errors in cost planning are another red flag – such as failing to account for amortization and depreciation – can lead to severe consequences. Underestimating costs might leave you underfunded, while incorrect financial forecasts could result in the grant being rescinded due to misrepresentation of the project's financial impact.

So, make sure you provide detailed financial statements, business plans, and all required documentation to support your case.

3. Missing Out on Key Evaluation Criteria

Every grant has a specific set of cost items that it supports (and DO NOT support). And, overlooking them can cause your cost planning to go off the rails.

One of the most common pitfalls? Listing non-eligible expenses in your project budget.

Let’s take another wildly popular grant – Enterprise Development Grant (EDG) - Automation  – as an example.

Too often, we’ve seen businesses mistakenly include software infrastructure expenses – like Google Cloud or Amazon Web Service (AWS) – as a project cost, only to find out mid-way that operational infrastructure isn't fundable. Imagine setting aside $20,000 for cloud services, only to realize you can’t claim it under the grant. Now, you’re scrambling to fill this gapping hole while the whole business is already committed to the project.

Basically, make sure you study the grant’s funding guidelines carefully. And, if you’re unsure about an expense, seek expert advice before submitting your application.

4. Failing to Define Clear, Measurable Outcomes

Grant providers want to see real impact. Showcase how your business’s manufacturing process will improve, how it’ll generate high-value employment opportunities, or foster innovation within your industry. If your application lacks well-defined, quantifiable results, it becomes difficult for evaluators to gauge your project’s value. Vague descriptions simply won’t cut it.

If your goal is to improve productivity, don’t just say so – demonstrate how.

• Will your new system reduce processing time by 30%?

• Does that translate to freeing up two hours per employee per day?

• Does this result in a 50% increase in profitability? Over what period?

The more concrete your projections, the stronger your case. Back up your proposal with data-driven projections that show the tangible benefits of your project.

5. Overlooking Post-Application Processes

Many assume that once they submit their application, the hard work is over. In reality, that’s just the beginning. Grant Officers often request additional clarifications and supporting documents – sometimes with tight deadlines. Applicants who fail to respond promptly risk having their applications terminated. Those who try to manage the process alone can become overwhelmed by obligations of business, leading to missed follow-ups.

Be proactive. Set reminders for key deadlines, monitor your email regularly, and don’t hesitate to request deadline extensions if needed – just ensure your requests are well-reasoned and professional.

6. Underestimating the Time Commitment

Downplaying the time commitment? Think again.

Applying for a grant is a long-term commitment. Many businesses underestimate the time required for post-approval obligations. Let’s take a look at some of them.

• Milestone Reporting – Involves submitting detailed progress updates at predefined intervals (e.g. quarterly or biannually) to agencies like Enterprise Singapore (ESG). Reports must demonstrate high alignment with the grant’s scope, such as evidence of completed project phases. Missing deadlines or underdelivering on agreed milestones can trigger funding delays, reduced payouts, or even claw backs.

• Financial Tracking – This is the meticulous record-keeping of all grant-related expenses (e.g. invoices, receipts, payroll records) to prove funds were used exclusively for approved purposes. Expenses must align with pre-approved budgets (e.g. software licenses, equipment purchases). Discrepancies, such as diverting funds to non-qualifying activities, may lead to failed audits or outright reimbursement.

• Audits – Auditors will scrutinize financial records, project deliverables, and adherence to the deliverables as originally proposed. Other checks may include adherence to broader grant conditions, such as maintaining sufficient local ownership & control or avoiding conflict of interests. For example, undisclosed partnerships with competitors can breach innovation-focused grants like the Technology for Enterprise Capability Upgrading (T-Up) by ESG.

And, that's why it is always a good idea to assign dedicated personnel to manage your grant-related responsibilities and keep a structured timeline for key deliverables and follow-up requirements.

🥡 Final Takeaway

To the uninitiated, applying for business grants is a maze-like process, but with the right approach, you can maximize your chances of success. By avoiding these six common pitfalls, you’ll set yourself up for a smoother application experience and increase your likelihood of securing the funding your business needs to thrive.

Need help with grants? Grantbii can help you get matched to grants based on your business needs and eligibility. Click here to browse for grants or get matched right away!