Importance Of SMEs For The Development Of The Economy Of Singapore
The enterprise-friendly environment of Singapore continues to attract foreign investors and encourage local entrepreneurs to start up. The government recognizes the importance of small and medium enterprises (SMEs) in uplifting the economy and actively supports the growth of the sector.
Information on review process
Enterprises in Singapore face various business environment challenges from cut-throat competition to manpower issues to financial roadblocks. Hence, government support is crucial in helping SMEs address and remain competitive despite these challenges. While many programmes and schemes have been launched by various government agencies to benefit SMEs, formulating frameworks and policies to better the sector as a whole is just as important. The Ministry of Trade and Industry (MTI) and International Enterprise (IE) work hand in hand with local investors to review strategies implemented in the past. This review process helps identify and filter out faults that could be used as basis in formulating better strategies to develop the SME sector.
Importance of SME’s
The impact of SMEs in the economy of Singapore is anything but small. The numbers are an easy indicator why. SMEs comprise 99% of all enterprises in the nation and are responsible for 70% of employment in the nation. With earnings that amount to 50% of the gross domestic product, SMEs prove to be a major contributor in sustaining Singapore’s economic growth. Such significant contribution warrants the government’s full support. The government has initiated measures to help bolster the growth of the SME sector from boosting technological capabilities to promoting productivity, offering tax incentives, cash payouts, upgrading skills of employees, infrastructure improvements, and giving access to advice from industry experts. The government consistently encourages local and foreign entrepreneurs to invest and Set Up A Company In Singapore.
The programmes and schemes implemented by various government agencies are specific to the needs of SMEs across industries. Those who are spending on infrastructure can be eligible for payouts. Businesses can enjoy up to 400% tax exemption through the Productivity and Innovation (PIC) Scheme. SMEs and large organizations (LOs) are also encouraged to collaborate and come up with innovative products and solutions addressing productivity and development of capabilities issues through Partnerships for Capability Transformation (PACT). These are just some programmes that benefit SMEs in Singapore. While such initiatives abound, making it accessible to SMEs must also be a priority. On the other hand, SMEs must also acknowledge the weak points of their business and actively seek for solutions or assistance to address them.
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