Growth of SME Sector: Future of Singapore
Small and Medium Enterprises (SMEs) are an integral part of developing the economic condition of a country. In Singapore, SMEs are considered a major contributor to the overall economic output of the island nation. Creating 70% of all employment opportunities and comprising 50% of Singapore’s gross economic output, SMEs are an essential economic building block. In return, the government takes varied steps in enhancing the SME sector and encourage enterprising individuals to initiate company formation Singapore
Strong leadership support and effective managerial decision-making skills can help SMEs thrive, grow, and generate better profit. Moreover, exposure to best industry practices helps SMEs to solve internal issues. Hence, the Ministry of Trade and Industry has launched several schemes to help improve the processes of SMEs in the industrial sector.
SMEs are a boon to Singapore as they majorly participate in the development of the economy. The more domestic establishments and labor would be promoted, and SME sector would grow more.
The major initiatives that the Government requires to undertake are:
Creating a healthy business environment: The biggest factor that directly affects a business enterprise are the internal and external environmental factors. Many issues that hinder the growth of the SMEs are legal, political, technological, international and financial factors. The Government should plan to provide assistance in eliminating political and legal factors by instating supportive trade and export laws and regulations.
Providing Appropriate Financial Support: SMEs lacks optimum resources to capitalize and progress. They do not have the resources to raise funds to operate successfully. The Government of Singapore should plan and implement programs in association with major banks and financial institutions to provide development loans to increase the productivity of the organization.
Encourage SME initiation and development: Government of Singapore needs to rejuvenate the entire SME sector and stress to increase the value of local business community and domestic enterprises. Programs should be developed to register Singapore Company and give incentives to increase the number of business establishments.
Enhance Innovation for business implementation: SMEs should be provided with latest technology tools and tools to enhance their productivity and quality. Adoption of modish ways of production and distribution improves the condition of the SME sector and gives SMEs a platform to compete internationally.
Skilled Human Resources: The lack of skilled workforce is an issue for many countries. The government has taken initiatives to establish training institutes and colleges providing specialized training to convert the unskilled labor into skilled labor.
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