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Recommendations To Frame An Effective Budget 2014

There is an increasing number of western investors showing interest in Singapore company formation. With the hike of tax rates in the United States and Europe, the attention of investors has naturally been diverted to business opportunity-rich countries like Singapore. Boasting of immense opportunities for growth and a sophisticated lifestyle, Singapore is constantly able to attract foreign investors to relocate and establish a business presence in the island.

While attracting foreign investment is instrumental in keeping the economy afloat, nurturing local entrepreneurs is also a priority. The government seeks to encourage more entrepreneurial locals to step forward and start a business. In line with this goal, Singapore has adopted a dynamic and determined approach to frame the Budget of 2014 for the development of the SME sector. Singapore Business Federation (SBF) created a committee to form suggestive policies that advocate the growth and development of SMEs.

Important factors to be considered for the growth of SMEs

Support SME’s in all aspects, at all levels

The government has taken serious measures to uplift the SME sector by creating a healthy business environment conducive for businesses to survive, grow and prosper. There are several enterprises that have special requirements. Some SMEs are at a growing stage that needs constant technological support to achieve sustainable growth. Some SMEs do not have a strategic advantage to develop their business and require support to survive in the cut-throat competition.

Motivate restructuring of SMEs

Some of the most common roadblocks SMEs face in Singapore are the lack of manpower with the right skill set, tough competition, lack of funding and low  productivity. For SMEs to become more competitive and growth-ready, the government can introduce more schemes and programmes that seek to restructure and improve the economic business environment conditions.

Survey findings

The SBF committee has conducted a survey that aims to determine the impact of SME government policies implemented in 2013. It is extremely important to monitor the growth prospects of the SME sector and recommend changes that would help the entrepreneurs to Set Up A Company In Singapore. In the survey, it was clearly visible that the policies should be framed in a manner that benefit small, medium and large companies. The policies should alleviate the cost pressures and labour challenges that would develop difficult conditions for the local businesses. The Budget must be effective and impactful that it should reach the needy for support. Some budgets face a trickle-down effect that results in the poor performance of the schemes and programmes. The Singapore government must then implement measures manage and monitor the programmes, and make sure that they are effectively carried out to enhance the growth of the SME sector.

The SBF National Business Survey indicated that the majority of the problems faced by SMEs are due to the inflation faced by the country for many years causing business and labour costs to increase and adversely affect the profitability ratio. Inflationary costs have to be controlled to enhance the growth of the SME sector.

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