Why Israeli companies should consider applying for "Smart Money" grants for international expansion?
"Smart Money" is a grant program offered by the Israeli government to support Israeli companies that are interested in expanding into international markets. The grant is designed to help companies cover some of the costs associated with market research, product development, and other activities required for international expansion. In this article, we will discuss why Israeli companies should consider applying for "Smart Money" grants and how they can benefit from the program.
1. Financial Support:
One of the main benefits of "Smart Money" grants is the financial support they offer. These grants can cover up to 50% of the costs associated with international expansion*, including market research, travel expenses, product development, and more. This financial support can be a significant boost for companies that are looking to expand but may not have the necessary resources to do so.
2. Access to New Markets:
Another key benefit of "Smart Money" grants is the access they provide to new markets. The grants are designed to help Israeli companies explore and enter new markets, which can help them grow their business and increase their revenue streams. By providing financial support for market research and other activities, the grant program can help companies identify new opportunities and develop strategies for success in new markets.
3. Increased Competitiveness:
International expansion can be a key driver of competitiveness for Israeli companies. By expanding into new markets, companies can access new customers, increase their revenue, and gain a competitive advantage over their peers. "Smart Money" grants can help companies overcome some of the challenges associated with international expansion and develop the capabilities required to succeed in new markets.
Overall, "Smart Money" grants can be an excellent way for Israeli companies to gain support for international expansion. The financial support, access to new markets, increased competitiveness, and networking opportunities offered by the program can help companies overcome the challenges of expanding into new markets and achieve long-term success. As such, Israeli companies that are interested in expanding into international markets should consider applying for "Smart Money" grants to support their efforts.
The Smart Money Program Government Grant for Exporters
The Smart Money program is a government grant designed to assist Israeli businesses that market their products or services abroad. The program provides financial support for marketing expenses, as well as professional guidance, to increase their sales volume in target markets.
It is worth noting that the program has recently been upgraded and is now divided into two tracks, based on the exporter's previous experience:
1. The New Exporter Track - intended for exporters with low sales volume, who have not previously exported or have exported in volumes less than 1 million ILS (the track replaces the former "Rate for International Marketing" program).
2. The Experienced Exporter Track - intended for exporters with sales volumes of up to 200 million ILS and previous experience in exporting a minimum of 1 million ILS.
What is the New Exporter Path program?
The exporter path program is intended for those seeking assistance with a low export volume who wish to expand their activities or those who have not exported before and are interested in exporting and marketing products or services to penetrate international markets and achieve significant sales growth, with a focus on developing marketing capabilities in international markets.
Submitting an application:
Please note that given the limited budget, companies will be evaluated based on their score in the committee, and not necessarily every company with a passing score will be accepted into the program.
What is the level of assistance that can be received in this program?
As part of the program, participants can receive funding for marketing expenses and professional guidance from consultants.
The assistance rate is up to 50% of the expenses, up to a total of 300,000 shekels for two years.
What does the assistance in the program include?
Financial assistance will be provided for developing marketing systems in the target market, including:
Preparing a marketing plan
Consulting and setting up marketing systems
Specialization in the target market
Online advertising and marketing
Exhibitions and demonstrations in the target market
Legal compliance, legal advice, and insurance
Guidance and direction of the commercial annex in the target country
What are the conditions for participating in the program?
The following conditions must be met:
- At least 35% of the business's activities are carried out in Israel.
- Annual export volume of up to one million shekels.
- Sales turno
The Experienced Exporter Track
An experienced exporter program provides two-year assistance to Israeli companies that market their products abroad with the aim of achieving significant sales growth. The assistance is provided through funding of marketing expenses and professional guidance by consultants specializing in the target market.
To submit an application, please note that due to a limited budget, companies will be evaluated based on their score in the committee, and not necessarily every company with a passing score will be accepted into the program.
The level of assistance provided in this program includes:
- Participation in the funding of marketing expenses at a rate of 30%-50% and a total amount of up to 500,000 shekels for a period of two years.
For exports to preferred markets such as India, China, and Japan, assistance in marketing expenses of up to 500,000 shekels will be provided for a period of three years.
Support at a rate of up to 50% for companies targeting a new market.
Support at a rate of up to 33% for companies engaging in a new marketing campaign in a market where they are already operating.
Support at a rate of up to 30% for companies submitting a request for a continuation program.
companies belonging to minority populations, as defined by the CEO's directive, are eligible for support at a rate of up to 75%?
The assistance can be used for various marketing expenses, including but not limited to:
- Marketing plan preparation
- Marketing system consulting and setup
- Market specialization
- Online advertising and marketing
- Exhibitions and demonstrations in the target market
- Travel expenses
- Standardization, legal consulting, and insurance
- Guidance and direction of the commercial appendix in the destination country
What are the conditions for participating in the program?
Companies interested in participating in this program must be willing to enter a new market, embark on a new marketing campaign, or seek assistance for a continuation plan and meet the following criteria:
- At least 35% of the company's operations are conducted in Israel.
- Sales turnover of up to 200 million shekels.
- Minimum export volume of 1 million shekels in each of the two years prior to submitting the application (exceptions are possible, see the CEO's directive 5.10 for details).
In conclusion, the Smart Money program provides significant financial and professional assistance to Israeli exporters, enabling them to penetrate target markets and expand their sales volume.
*50 per cent of the Grant offered by the government.