Capability Building Grants - Eligible Cost Categories

Eligible Cost Categories

1. Strategic business development
2. Feasibility studies
3. Business and operational excellence
4. E-commerce and e-business strategies
5. Market development - strategy development
6. Business mentoring  
7. Management and technology-based training
8. Business advisory boards
9. Ineligible Costs

Please be aware mentoring or coaching programmes are only applicable under category six - Business Mentoring.

1. Strategic business development

This category includes the following areas of activity:

• Business/strategic plan development - development of a new plan or extending an existing plan to incorporate the development of a new project
• Human resource strategic plan development - designing HR practices to help staff realise their potential; developing timely and quality training and ways of using the skills and knowledge gained from such training; developing ways of increasing employee performance; employee recognition processes; employee involvement in the business
• Financial viability planning - development of financial systems to assist the project and/or its longer-term commercial production; assistance with break-even points; establishing product price, cash-flow forecasts, budgets and cash projections
• Strategic design advice – expert advice or market intelligence to assist with the management of design strategies, brand development or product positioning.

2. Feasibility studies

This category includes evaluation of whether the project/concept is commercially viable - this may involve evaluation of a new idea, investigating whether a product or technology developed overseas is applicable in New Zealand, or assisting with the preparation of a report assessing a business' capability to implement the project.

3. Business and operational excellence

This category includes the following areas of activity:

• International quality standards certification – (e.g. ISO Q-Base, HACCP etc but TGA approval for market entry into Australia is not covered) or internationally recognised environmental standards or certification (e.g. ISA 14000 or organic certifications such as Bio-Gro), including attendance at a course/programme with international certification as an outcome. Costs relating to the company achieving certification are eligible, including advice, manual development advice, audit, accreditation and the first year’s certification expenses
  Please note:  All certifications relating to products must not be business as usual and only qualify for the co-funding if the process is seen to build capability through a first time process only
• Systems evaluation and development - operations management evaluation and improvement
• Environmental management systems - development of management systems that will enable businesses to identify and reduce their environmental impacts.

4. E-commerce and e-business strategies

This category includes development of a strategy to maximise electronic opportunities for the business - this is at the strategic level only and could involve the development of a business-to-business e-commerce strategy and/or an internal e-business management plan.

5. Market development - strategy development

This category includes the following areas of activity:

• Market research/new market investigation (domestic and international markets) - market research/new market investigation costs from organisations other than NZTE may be considered
• Marketing plans - development of a marketing strategy for the project.

6. Business mentoring  

• Employing a professional business advisor or mentor to work within the business or alongside it for a set period of time.
• A business mentor is a coach not a consultant.
• From their own experience they should be able to advise you, act as a sounding board, stimulate and challenge you.
• You will need to demonstrate:
  • Why the mentor is required and what specifically they will assist with
  • How the mentor will impact the future commercial success of the business
  • The mentor’s relevant experience/skills
• Up to a maximum NZTE contribution of NZ$3,000 (GST inclusive) per applicant per year.  

To find out more, or to apply for the help of a business mentor, please visit:
www.businessmentor.org.nz  or phone 0800 103 400 or contact your local Economic Development Agency.

>> Read more about mentoring. 

7. Management and technology-based training 

• Up to a maximum NZTE contribution of NZ$3,000 (GST inclusive) per applicant per year.
• Fees to assist with courses that develop more advanced management capability and/or technology-based training for owners/senior managers in relation to the development of the concept/product/service or project. Courses must be at tertiary level, NZQA or internationally accredited.

8. Business Advisory Boards

• Up to a maximum NZTE contribution of NZ$3,000 (GST inclusive) per member per year (up to three years). Maximum 3 members.
• Fees to assist in the engagement of an advisory board for businesses only. Co-funding for advisory board members can be up to three years.  A new application will need to be submitted for each year of co-funding.  
• All applications for co-funding must include a signed copy of the advisory board members contract / agreement for each member and curriculum vitae detailing a minimum of five years relevant experience.
• To ensure that you are fully aware of all liabilities and potential risks associated with Advisory Boards, please refer to the Small Business Advisory Board Guide (see right-hand panel) before applying.

If you need assistance identifying suitable Advisory Board members please phone biz on 0800 42 49 46 or contact your local Economic Development Agency.

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Ineligible Costs

Unless specifically noted as eligible, all other costs are ineligible. In addition, whether or not they fall into the eligibility criteria listed above, some costs may be ineligible on other grounds.  The general categories of ineligible costs are as follows:

• Retrospective costs (i.e. costs incurred by the applicant prior to the completed application being received and accepted as complete by NZTE)
• Costs relating to normal business operating expenses, non-developmental costs of the project, business establishment, purchase of assets, capital equipment, machinery and raw materials
• Costs incurred internally by the organisation, such as payments that cannot be invoiced by a third party (e.g. salaries, wages, fees, personal expenditure, in-kind expenses or donations)
• Work being undertaken in relation to the project/activity by any of the applicant's employees or the employees/office holders of any subsidiary/associate/parent companies
• Work being undertaken in relation to the project/activity by the immediate family of the applicant, the applicant's employees or the employees/office holders of any subsidiary/associate/parent companies
• Costs of anyone with a financial interest in the project/activity (e.g. shareholders of the applicant company)
• Costs of New Zealand permits or consents and licenses, renewal or registration fees
• Costs associated with making an application under another government assistance programme (e.g. to help develop a Technology for Business Growth Scheme proposal)
• Costs relating to commercialisation of the product/service (e.g. production runs, film and video production, producing brochures, advertising)
• In-kind contribution or time
• Costs of, or directly related to, applying for assistance from NZTE, or costs related to any advice or expertise provided by NZTE. Suppliers should not fill out application forms or claims on behalf of their clients.
• Costs associated with implementation of a business, marketing of HR plan or training programme fees.
• Costs for tax advice or consultancy, company restructuring, takeovers or costs involved in establishing and registering a new company.
• Energy efficiency projects - please note the Energy Efficiency and Conservation Authority (EECA) has grants available to help businesses save money and energy. To find out more contact EECA on 04 470 2200 or visit www.emprove.org.nz
• Costs relating to the implementation of a web strategy, installation, domain name registration, web site design and maintenance or installation of hardware, software or other capital expenditure.
• Market research involving the Australian market is specifically excluded from this category because of New Zealand's obligations under CER.
• Course related costs for MBAs and other tertiary degrees and related travel costs, accommodation and incidentals

Please note: the above list is provided for information purposes only. NZTE reserves the right to exclude other costs as ineligible if appropriate.