Who is eligible to enter the competition?
All GST-registered, for profit, commercial entities (except those that are banking and property related) that have minimum revenues of $1m and that have been in operation for at least two years are eligible. Applicants who are engaged in activities that might result in being in breach of any law, regulation, undertaking, provision, voluntary code or practice, or policy which the applicant is obliged or accustomed to observe will not be considered. For further information please go to Terms and Conditions.

What will be required in order to receive funding from the Challenge?
Applicants will be required to wholly and honestly advance through each step of the Application Process as discussed in Application Process Part One. Please note, as a “Challenge”, the Entrepreneurs’ Challenge’s objective is to select the highest-potential AND best fitting candidate.  Qualifiers will be required to sign and return the Entrepreneurs’ Challenge Terms and Conditions. Finalists will be required to present to the Investment Committee and to negotiate terms of the loan.

Can you provide me with the key dates of the Challenge?
25 June 2010 - Online entry opens
19 July 2010 - Entries close at 5pm
9 August 2010 - Announcement of qualifiers
30 August 2010 - Deadline for qualifier’s full application at 5pm
17 September 2010 - Finalists announced
27 September 2010 - Finalist’s full due diligence information due
18 October - 22 October 2010 - Finalists present to Investment Committee
November 2010 - Challenge awards ceremony date tbc

What does a typical investment look like (how much money is loaned and over what period of time?)
The Challenge will invest up to $1 million per annum divided between the successful applicants. We anticipate making investments of between not less than $200k in the form of an interest-bearing loan repayable over a three year term.

The terms of loans for the 2010 Entrepreneurs’ Challenge included the following:

• Example 1: Up to $400k loan with an interest rate of 5% and no security.  Interest and principal repayments throughout the term of the loan and the agreement to provide two times the interest costs at the end of the loan term.
• Example 2: Up to $300k loan with an interest rate of 5% and no security.  Interest and principal repayments made at the end of the term of the loan. Options in the company which give the Challenge the right to convert to shares in the future.
  

What are the terms for the investment?
For further information please see Terms and Conditions.

What is expected from me once I have received the investment?
You will be expected to:

• Meet milestones that were approved by the Entrepreneurs’ Challenge Investment Committee
• Work with a selected Entrepreneurs’ Challenge mentor
• Provide the Entrepreneurs’ Challenge with Quarterly Reports
• Repay the loan based upon the negotiated loan repayment schedules
  

Does my business need to be exporting or planning to export in order to qualify?
No, your business does not need to be exporting or planning to export. However, it is likely that favor will be shown to companies that are in, or are pursuing, international markets.

If I am not successful this year, will I be able to apply next year?
Yes, you can apply in future years. All qualifiers will receive feedback on their application if they desire.

Why is this Challenge better than a bank loan?
A large number of the applicants to the 2009 Challenge would not have been able to secure a conventional bank loan and for those that could, the terms would likely have been restrictive, given the inherent risk in the applicants’ businesses. The Entrepreneurs’ Challenge investment is typically provided in the form of a Commercial Loan on terms (interest, security) that are more advantageous than those available in the market for companies of a similar age, stage and risk profile. Accordingly, the Entrepreneurs’ Challenge may negotiate on a case by case basis the opportunity for a sharing in the “up-side” for successful applicants so that it can support more companies in the future.

Additional benefits have also been highlighted above -  the opportunity to work with the Investment Committee and to receive expert feedback, mentoring from highly experienced and successful entrepreneurs and business executives, profile and publicity at all stages of the Challenge, and the opportunity to gain benefits from engaging with the Business School’s entrepreneurial ecosystem, which includes access to student and graduates as  interns or employees , consulting projects , lecturing opportunities, and access to expertise through UABS lecturers and The ICEHOUSE.

For more information
If you would like more information or have any questions about the Entrepreneurs’ Challenge and its activities, please This e-mail address is being protected from spambots. You need JavaScript enabled to view it .