Executive Summary
2. For 2003/2004, growth services represent 36% ($61 million, GST inclusive where applicable) of the combined agencies' funding (for both services and grants). Services in this range provide customised business and international market development assistance, targeted at firms (and groups of firms) with significant growth potential in order to accelerate their development and enhance their contribution to New Zealand's overall economic growth.
3. The growth services range will offer an integrated approach to assisting New Zealand businesses to be internationally competitive, allowing a number of issues to be addressed either individually or in concert. The range will also focus on the need to be responsive to specific firm needs at particular phases - or "transition" points - of a firm's development.
4. The growth services range will involve:
- A relative emphasis on businesses with significant growth potential, while maintaining access to some assistance for a wider group of SMEs.
- An integrated approach to client management with a team of client managers as the primary interface with clients, providing appraisal and facilitating clients' access to the necessary expertise and resources they require to successfully grow their businesses. The level of engagement with clients will depend on their growth potential and needs. More intensive and proactive client management will be available for high-growth/high-impact potential clients.
- A mix of part-funded in-house and contracted services and the use of grants to part-fund the purchase of external assistance.
5. NZTE will continue to deliver a range of specialist information and advisory services to support international market development, as currently delivered through Trade NZ. These services include market evaluation and selection, buyer/partner identification, market visits and market monitoring. The services will be delivered in-house, drawing on market development specialists both onshore and offshore and through the ebusiness portal. Part of the costs of this service will be recovered through user charges, which will vary depending on the costs of different markets and the precise services provided.
6. It is proposed that Industry New Zealand's Business Growth grants be replaced with a Growth Services Fund aimed at assisting high growth potential firms to purchase external advice and expertise and market intelligence and development services. It is considered that grants would be for up to a maximum of 50% of the costs of the qualifying projects, and normally be in the range of $50,000 to $500,000.
7. NZ Trade and Enterprise will report back to the Ministers of Finance, Industry and Regional Development, Trade Negotiations, and Associate Foreign Affairs and Trade by 30 June 2003 on the detailed operation of the Fund, including criteria, funding caps for eligible activities and levels of delegation, approval processes, management of demand, and identifying how potential overlaps with the Foundation for Research, Science and Technology's (FRST) Technology NZ programmes will be managed.
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