Debunking 5 Common Myths About Grant Funding for NZ Businesses
For many New Zealand businesses, grant funding remains an underutilised opportunity. Not because the money isn't out there — but because persistent myths keep it off the radar.
At Swell, we hear the same assumptions time and time again: “Grants are too complex,” “We’re not the right fit,” or “We applied once and didn’t get it.” While these statements often stem from real experiences, they can lead to misconceptions that prevent great businesses from unlocking the funding they need to scale, innovate, and compete globally.
In this article, we unpack five of the most common myths about grant funding in Aotearoa — and set the record straight.
1. "Grants Aren't for Me"
It’s one of the most common assumptions we hear — and one of the most limiting. Many businesses write off grant funding because they believe it’s only for a certain type of business — not for them. The reality? Grant funding spans a far wider range of sectors, focus areas, and business types than most people realise.
There are grants designed to support a wide range of sectors, priorities, and business stages. From the Primary Sector Growth Fund (PSGF) backing innovation in the primary industries, to the Waste Minimisation Fund (WMF) supporting sustainability initiatives, to the New to R&D Grant helping businesses take their first steps into research and development.
Whatever your industry or maturity, a funding pathway very possibly exists that aligns with your objectives.
👉 Curious what grants might apply to your business? Read our guide to navigating New Zealand’s grant funding landscape — it’s packed with practical examples and insights to help you get started.
2. "Grants Will Fund My Whole Business"
This is a fundamental misunderstanding. For most grants, funders don’t fund businesses — they fund projects.
Grants are designed to support clearly defined initiatives with specific objectives. For example, the Waste Minimisation Fund exists to fund targeted projects or workstreams that directly divert waste from landfill. It’s not about funding an entire company’s sustainability ambitions — it’s about backing a measurable intervention that aligns with the fund’s purpose.
That’s why the way you frame your project matters. Funders want to see clarity, focus, and alignment with their objectives. A well-defined project with tangible outcomes isn’t just preferred — it’s essential.
3. "Grants Are Free Money"
Grants are often wrongly seen as “free money,” a pot of government cash that businesses can tap into without much obligation. But that view misses the mark. In reality, grants are strategic investments made by the government into projects they believe will deliver meaningful impact for New Zealand — whether by reducing emissions, lifting productivity, supporting regional development, or building capability in key industries.
Seen in this light, grants come with all the expectations you'd associate with any serious investment: clear outcomes, accountability, and follow-through. Applicants need to deliver on what they’ve proposed — that means meeting milestones, reporting progress, and demonstrating impact.
Grants aren’t a windfall, they’re a structured opportunity. Approaching them with a clear plan, measurable goals, and an understanding of what’s expected sets you up for success.
4. "I Applied Once and Wasn't Successful — There's No Point Trying Again"
It’s easy to feel discouraged after putting a lot of effort into an application that is declined, but treating that “no” as a final answer can mean walking away from future opportunities. The truth is that many strong applications don’t succeed the first time — and many successful businesses have faced rejection before getting funded.
Grants are competitive, and the criteria can be nuanced. Sometimes applications fall short not because the project lacks merit, but because the framing wasn’t quite right, the objectives weren’t clearly aligned, or the financials didn’t stack up.
👉 Want to understand where applicants often go wrong? This article breaks down the most common challenges NZ companies face when applying for grants — and how to avoid them.
The key is learning from the experience. Most funders will provide feedback, and those insights can be invaluable. With the right support, you can strengthen your case, refine your messaging, and reapply with greater confidence.
5. "The Application Process is Too Complex to Navigate"
It’s true — applying for funding can be detailed and, at times, overwhelming. But complexity shouldn’t be a deal-breaker. Many businesses give up before they even begin, assuming they don’t have the time or expertise to pull it off. That’s often where opportunities are lost.
Yes, grant applications require planning, documentation, and attention to detail. But the process is designed to ensure that funding goes to well-considered, high-impact projects. It’s not about red tape for the sake of it — it’s about clarity, accountability, and value.
The good news? You don’t have to go it alone.
How Swell Helps Kiwi Businesses Unlock Grant Funding
At Swell, we turn what can be a complex and time-consuming process into a clear and manageable one — and we manage it end to end. That includes everything from identifying the right funding pathway, to structuring the project, to writing and submitting the application, as well as supporting contracting and project set up once funding is secured.
Our team brings deep expertise in securing funding for innovative Kiwi companies. We don’t just help you apply, we help you shape a compelling, grant-fundable project that aligns with government priorities and stands up to scrutiny.
👉 Curious what this looks like in practice? See how Swell helped NILO secure a $6.2 million grant to scale their waste minimisation efforts and turn an ambitious idea into real-world impact.
👉 Keen to explore what funding could be available for your business? Get in touch with the Swell team to see where the right funding could take you.