In today’s fiercely competitive business landscape, innovation is the core driver that enables companies to achieve sustained growth and stand out from the crowd. However, even with groundbreaking ideas, businesses may struggle to turn their visions into reality if they face financial constraints.
Fortunately, the government now offers various funding programs designed to help small and medium-sized enterprises (SMEs) overcome financial and technical challenges, enhancing their innovation capabilities and market competitiveness. One such initiative is the “Enterprise Support Scheme” (ESS), launched under Hong Kong’s Innovation and Technology Fund (ITF). This program serves as a timely lifeline, bringing new hope to businesses in need.
What is the “Enterprise Support Scheme” (ESS)?
Introduced in 2015, the Enterprise Support Scheme (ESS) is a key government funding program under the Innovation and Technology Fund (ITF). It aims to provide financial support to encourage local enterprises to engage in research and development (R&D), helping them overcome technical bottlenecks, accelerate product commercialization, and contribute to Hong Kong’s economic diversification.
Currently, ESS covers direct R&D-related expenses, with eligible companies receiving up to HK$10 million, covering 50% of the project costs.
Eligible expenses include:
Labor costs: Salaries and related expenses for R&D personnel
Equipment & materials: Purchase or leasing of instruments, software, and consumables for R&D
Outsourced R&D: Fees for collaborating with local universities or research institutions
Commercialization: Transforming R&D results into market-ready products or services
Digital transformation: Implementing smart management systems, cloud applications, big data analytics, and other digital technologies
Other direct costs: Patent application fees, testing expenses, etc.
Non-eligible expenses include daily operational costs, marketing expenses, or non-R&D-related expenditures. Companies must submit a detailed budget to ensure all costs are directly tied to R&D.
Who is Eligible for ESS? How to Apply?
To apply for ESS, businesses must meet the following criteria:
A. Incorporated in Hong Kong
B. Hold a valid Business Registration Certificate
C. Not a government-funded organization
D. Not a subsidiary of any government-funded organization
Note: Startups, SMEs, and large enterprises from any industry can apply, provided their projects demonstrate innovation and commercialization potential. Some specialized support schemes may have additional restrictions on company size or sector, so applicants should check the latest official announcements before applying.
Application Process:
Step 1: Preparation
Ensure your company meets ESS requirements and prepare the following documents:
a. Certificate of Incorporation
b. Valid Business Registration Certificate
c. Latest Annual Return (or Incorporation Form for newly established companies)
d. Notification of Change of Company Secretary/Directors (if applicable)
e. Notification/Certificate of Change of Company Name (if applicable)
f. Organizational chart of the applicant company (and its group, if applicable)
Step 2: Complete & Submit the Application Form
Fill out the ESS application form according to the guidelines, providing all required supporting documents to demonstrate the project’s value.
Step 3: Initial Screening
The Secretariat will acknowledge receipt of the application and review its completeness. Eligible applications will be assessed by the Review Committee, which will recommend approval to the Commissioner for Innovation and Technology.
If approved, the company must submit a revised application (addressing any Committee feedback on project scope, budget, milestones, etc.) within three months for final approval.
Step 4: Post-Approval Procedures
Successful applicants must sign a funding agreement with the government and comply with its terms, including progress reporting, financial audits, and milestone submissions.
For more details, visit: https://www.itf.gov.hk/l-tc/ess.asp
How to Improve Your ESS Approval Chances? 5 Key Strategies
1. Highlight Innovation & Market Potential
Focus on innovation, commercialization, or digital transformation, detailing how your solution outperforms existing ones (e.g., efficiency, cost savings). Provide market research (target audience, market size, competition analysis) to prove demand.
2. Present a Clear Budget & Timeline
Outline phase-by-phase funding allocation and set measurable milestones (e.g., “Prototype completion in 6 months,” “Small-batch production in 1 year”).
3. Emphasize Social Impact
If your project involves sustainability, digital transformation, or public health, highlight its societal benefits (e.g., reducing carbon emissions, improving urban living).
4. Showcase Team Expertise
Demonstrate your team’s qualifications and industry experience. Partnerships with universities or research institutions can boost credibility.
5. Seek Professional Consulting
Many applications fail due to incomplete documentation or unclear proposals. HONIK Biz, a leading government funding consultant in Hong Kong, offers end-to-end ESS application support, including:
Eligibility assessment & tailored funding recommendations
Professional proposal drafting to highlight project value
Application form assistance & document preparation
Mock review Q&A sessions to prepare for evaluations
E-commerce solutions (partnered with HKWEB) to accelerate product launches
Take Action Now!
If you’re considering ESS, now is the best time to apply! Contact HONIK Biz today to maximize your funding success and unlock new opportunities for business growth. Let’s work together to turn your innovative ideas into reality!
