SME Policies That Can Help Your Business Grow In Singapore
In setting up and running a business, external financial support and strategic planning are instrumental in achieving success. The Singapore government has continuously been supportive of the small and medium enterprises (SMEs). Recently, the government has implemented policies, programmes, and schemes to help shape Singapore’s SME sector. These have not only impacted existing entrepreneurs but also the number of entrepreneurs registering a business in Singapore.
These are some of the initiatives of the government that are supportive of the sector:
Productivity and Innovation Bonus: The PIC Bonus entitles entrepreneurs and business owners who invest in qualifying activities under the scheme such as employment of Singaporeans, research projects, and technological advancements with a dollar-for-dollar matching bonus with a cap of $15,000 from 2013 to 2015.
Corporate Tax Rebate: To alleviate the rising costs of running a business, the government offered SMEs with a 30% rebate on corporate income. This tax rebate is valid till the year 2015.
Technology Adoption: Through the programme, SMEs with technological needs can get matched with qualified service providers who can satisfy their requirements. The programme seeks to increase productivity, lessen the staff workload, and improve the output quality. The programme is specifically directed to the Construction, Food Manufacturing, Precision Engineering, Marine Space and Retail sectors. This will entitle industries to take technologically advanced products, help their sector and increase yield and make more money in the long run.
SME Talent Hunt: Manpower issues is one of the main concerns of entrepreneurs in the SME sector. To address this problem, the government in cooperation with SPRING and TACs, launched the SME Talent Programme. The said program encourages more youth in polytechnic universities and ITEs to take a step forward and become entrepreneurs, or join SMEs. Interested students will get awarded with scholarships and a job opportunity with an SME once they graduate.
Work-Train Grant: One of the most effective grants, the Work-Train Grant supports employers in covering the costs Flexible Working Arrangements, also known as FWAs. The FWA, in turn, motivates the employers to invest in their workers and send them to skills improvement training.
Training Cost Lowered: To encourage productivity improvement, the government has made training more accessible by providing employers with to 90% rebate in the cost of over 8,000 courses available to SME employees. With this, company owners will find it easier to send their staff to skills improvement training and ultimately, improve the productivity level in the business.
Pre-approved Consultancy: In order to achieve greater heights, the government has given way for SMEs to consult with industry experts in areas like market assistance, business restructuring, and market entry.
Centers that regulate small and medium scale industry: The SME centres are established as a Central Integrated Stop. These centres will help SMEs get better information, seek advice, as well as foster relationships and links businesses across various sectors, thus helping them grow. The SME center is like a market place where the small and medium scale industries link.
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