BUD Fund Type (i), why does it matter?

2 Types of BUD Projects

When we talk about BUD Fund, most people regard it as a project execution grant, i.e. You have something to do and the HK Government grants you some money to do it. Nevertheless, there are actually TWO types of BUD projects, named “Type (i)” and “Type (ii)” respectively. Well, the names cannot give you any ideas what they are about. Let’s check it out.

Type (i) Project Application: Holistic Business Plans

Applicant company hires a qualified business consultant to develop a holistic business plan that aligns with the goals of the BUD Fund.

Type (i) is about PLANNING, and …

Type (ii) Project Application: Implementation

Applicant company executes specific measures in a business plan that aligns with the goals of the BUD Fund.

Type (ii) is about EXECUTION.

Why does the BUD application fail?

Given the eligibility of the applicant companies, many of them still fail the BUD application, why? It is because they cannot show a reasonable and sensible business plan in the BUD application. Think about raising a loan from a bank, if you go the bank without any preparation or evidence to show your ability to repay on time, probably the bank is not going to approve any loan for you. The same thing happens at the BUD office when an applicant approaches. For instance, an applicant is lack of experience in the Philippines (which is covered in the FTA Programme) and claims to do a series of roadshows in Manila. Frankly speaking, it is just not persuasive enough for any people with common sense.

Reading: Why did BUD Fund application fail?

No plan? Go for BUD Type (i)

Now we know the key factor of the BUD application: Planning. You may ask, “but the BUD official site writes that enterprise can apply even without any business in a particular local market, what is it about?” Yes, they mean to ask you to apply for Type (i). You should have a holistic business plan after a BUD Type (i) project finished. Then it is the time to apply Type (ii) the execution of the plan.

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