SME Singapore: Boosting Small Business Growth in the Lion City

If you’re an entrepreneur in Singapore looking to start or grow your business, you’re not alone. Small and medium-sized enterprises (SMEs) are a vital part of the Singaporean economy, accounting for over 99% of all businesses in the country. As an SME, you have access to a range of support and resources to help you succeed, from government initiatives to private sector programmes.

One of the key advantages of operating an SME in Singapore is the government’s commitment to supporting small businesses. The government has established a range of initiatives designed to help SMEs grow, from funding schemes to training programmes. In addition, there are a number of private sector organisations that offer support and resources to SMEs, including the Association of Small and Medium Enterprises (ASME) and the SME Centres network.

Whether you’re just starting out or looking to take your business to the next level, there are plenty of resources available to help you succeed. In this article, we’ll provide an overview of SMEs in Singapore and the support and resources available to help you grow your business. We’ll also answer some frequently asked questions about starting and running an SME in Singapore.

Key Takeaways

• SMEs are a vital part of the Singaporean economy, accounting for over 99% of all businesses in the country.
• The Singaporean government and private sector organisations offer a range of support and resources to help SMEs grow.
• Whether you’re just starting out or looking to take your business to the next level, there are plenty of resources available to help you succeed.

Overview of SMEs in Singapore

If you are interested in learning about the small and medium-sized enterprises (SMEs) in Singapore, you have come to the right place. SMEs are an essential part of Singapore’s economy, contributing significantly to its GDP and employment. In this section, we will provide you with an overview of SMEs in Singapore, including their economic impact and the challenges they face.

Economic Impact on GDP and Employment

SMEs are an integral part of Singapore’s economy, contributing almost half of its GDP and employing two-thirds of its workforce. According to the Department of Statistics Singapore, SMEs accounted for 99% of all enterprises in Singapore and employed 65% of the workforce in 2020. SMEs’ revenue growth has been steady over the years, with the total operating receipts of SMEs increasing from SGD 812 billion in 2016 to SGD 870 billion in 2019.

Challenges Faced by SMEs

Despite their significant contribution to the economy, SMEs in Singapore face several challenges. One of the most significant challenges is the high cost of doing business in Singapore. The high rental costs, labour costs, and regulatory compliance costs make it difficult for SMEs to survive and grow. Additionally, SMEs often face difficulties in accessing financing, which limits their ability to invest in growth and innovation.

Another significant challenge faced by SMEs is the shortage of skilled workers. The tight labour market in Singapore makes it challenging for SMEs to attract and retain skilled workers, which can impact their productivity and growth.

In conclusion, SMEs are a vital part of Singapore’s economy, contributing significantly to its GDP and employment. However, they face several challenges that hinder their growth and sustainability. It is crucial to address these challenges and provide support to SMEs to ensure their continued success and contribution to the Singaporean economy.

Support and Resources for SMEs

As an SME in Singapore, you have access to a wide range of support and resources to help you grow your business. Here are some of the key areas where you can get help:

Financial Assistance and Schemes

Financing can be a major challenge for SMEs, especially during a pandemic. Fortunately, there are several financing options available to help you manage your cash flow and grow your business. One of the most popular schemes is the Enterprise Financing Scheme (EFS), which provides trade loans, project loans, and working capital loans to Singapore companies. Another option is the SME Working Capital Loan, which provides up to $1 million in financing to SMEs with an annual sales turnover of up to $100 million.

Capability and Productivity Improvement

To stay competitive, SMEs need to constantly improve their operations and capabilities. This is where the SME Centres come in. These centres are run by experienced business advisors who can provide you with advice and support on a range of topics, from governance and operations to industry partnerships and e-commerce. They can also help you apply for funding and schemes, such as the Productivity Solutions Grant (PSG), which provides funding for SMEs to adopt pre-scoped IT solutions and equipment.

Internationalisation and Overseas Expansion

If you’re looking to expand your business into overseas markets, there are several resources available to help you. Enterprise Singapore is a government agency that provides support and advice to SMEs looking to expand overseas. They can help you identify potential markets, connect with trade associations and chambers, and provide funding for overseas missions and exhibitions. The SME Centres can also provide you with advice and support on overseas expansion, including help with applications for grants and schemes.

In summary, as an SME in Singapore, you have access to a wide range of support and resources to help you grow your business. Whether you’re looking for financing, advice on capability and productivity improvement, or help with internationalisation and overseas expansion, there are many options available to you. Be sure to sign up for newsletters from relevant agencies and trade associations to stay up to date on the latest resources and opportunities available to you.

Frequently Asked Questions

How can I determine if a company qualifies as an SME in Singapore?

To determine if a company qualifies as an SME in Singapore, you can refer to the guidelines provided by the Singapore government. Generally, an SME is defined as a company with an annual sales turnover of not more than S$100 million or an employment size of not more than 200 employees.

What are the criteria for a business to be classified as an SME by ACRA?

ACRA, the Accounting and Corporate Regulatory Authority of Singapore, does not classify businesses as SMEs. However, they do require companies to declare their business size during their annual filings. The criteria for determining business size are based on annual revenue and number of employees.

Where can I find a comprehensive list of SMEs operating in Singapore?

You can find a comprehensive list of SMEs operating in Singapore through the Enterprise Singapore website. The website provides a directory of SMEs that are registered with the agency.

What support is available for SMEs through SME Centres in Singapore?

SME Centres in Singapore provide a range of support services to SMEs, including business advisory services, access to financing schemes, and assistance with government grant applications. They also offer workshops and training programmes to help SMEs improve their capabilities and competitiveness.

Could you tell me the average salary range within Singaporean SMEs?

The average salary range within Singaporean SMEs varies depending on the industry and job function. However, according to a survey conducted by the Ministry of Manpower in 2020, the median monthly income for employees in SMEs was S$3,500.

What proportion of the Singaporean economy is contributed by SMEs?

SMEs play a significant role in the Singaporean economy, contributing to about two-thirds of employment and around half of the country’s GDP. They are an important driver of innovation and growth, and the government has implemented various initiatives to support their development and success.