Existing Businesses:
Innovation

Existing Businesses:
Innovation

FAQs

How long does the application process take? How much funding can I receive? What if I don't have 100 percent ownership in my business?

Business innovation projects supported by Aboriginal Business Canada (ABC) include developing new products or adapting existing ones, improving processes to make your business run more smoothly and reduce costs, getting ISO certification, or investing in equipment that features new or improved technology.

Eligibility Criteria

To be eligible for ABC support for innovation projects you must:

• be of Aboriginal heritage (Status or Non-status Indian – located on or off-reserve – Métis or Inuit); and
• have a minimum of 15 percent cash equity to invest in the total eligible project costs. (This may increase depending on your financial capacity to bear more of the costs. At least one half of your equity must come from personal resources.)

Additional Considerations

• Your business must have been in operation for at least one year.
• The proposed innovation must represent a material change in business methods or processes, usually involving technology.
• The proposed innovation must result in an appropriate incremental improvement in your business' profitability.
• The proposed innovation must be new to your business and, ideally, move it towards or beyond the industry standard for a business of its type.
• As the terms material change and industry standard are relative, ABC will determine whether proposed projects meet the assessment criteria on a case-by-case basis.

Note: ABC does not support the simple replacement of assets.

Overview of Supported Activities

ABC's support for innovation projects falls into four sub-categories:

Product Innovation – Developing new products or adapting existing ones.

• Examples include developing "value-added" technological capabilities that diversify the products offered or improve services related to the firm's core businesses. Your new products must give you a competitive advantage when compared to similar products of competitors.

Process Innovation – Adopting flexible manufacturing systems to reduce delivery lead times, lower operating costs, reduce set-up times and enhance processes using information technology.

• Examples include computerized inventory and cost-control systems, accounting and reporting systems, customer communications, as well as integration of information technologies.

Organizational Innovation – Responding to quality demands of customers or the marketplace by adopting a Total Quality Management system, or achieving ISO certification.

Technological Innovation – Adopting new machinery or equipment (often incorporating process innovation) that embodies new or improved technology.

Eligible Project Costs

For projects involving innovation activities, ABC can support:

• capital costs,
• operating costs,
• marketing costs,
• costs associated with obtaining financial services and business services, and
• costs associated with obtaining appropriate training and/or mentoring services.

Applying to ABC for Support

Now that you have reviewed our eligibility criteria and other important information, you are ready to proceed to the next section. This section will explain the application process for ABC support.

Questions? Please review our Frequently Asked Questions or contact a development officer at an office location near you.

Before You Apply | Applying to ABC | Once a Project is Approved | Once a Project is Completed