The economic success of a nation depends on distinct factors, and one of the factors that support the socio-economic development of a nation is how the small and medium enterprises of a nation are performing to help enhance business operations & collaborations.
More specifically, in the case of nations depending more on trade, imports, exports, services, and small-scale manufacturing, the need for better performance of SMEs Singapore is impeccable, to deal with issues of inflation and recession environment.
Categorically in the case of Singapore nation, the role of SME Singapore is imperative for economic development.
The Singapore Business Federation (SBF) puts out a National Business Survey every year. Collating on performance metrics of thousands of businesses from Singapore, this survey provides significant insights into the business scenario.
It talks about many different parts of the business, such as mood, priorities, challenges, change, innovation, and going global.
Post the pandemic and turbulent times of the business environment, the report highlights the near future as optimistic and highlights some of the key reasons leading to optimism.
For more information: National Business Survey 2021/2022
In this article, basis the information curated from the industry reports and business views, some of the key business opportunities and challenges for SME Singapore for the year ahead (2023) are discussed.
SME Singapore faces challenges and has opportunities, and the businesses that can deal with the challenges effectively will have a competitive edge in the coming times.
Nearly half of the businesses participating in a distinct set of business environment surveys are optimistic about the emerging conditions into the new year.
In comparison to the last two years, the impact of Covid-19 on the business seems less in the case of many SMEs Singapore.
Businesses also feel better about the economy. The levels of satisfaction across the micro, and macro sectors, organized and unorganized segments stand positive, and then they were last year among the SME companies in Singapore.
Despite that the global nations are fearing inflation and recession impacts, still there is optimism prevailing in the business environment.
There are still problems to be dealt with. For example, organizations worry about issues of inflation and about having enough people at work. On the list of things to worry about are both the cost and the availability of qualified workers.
Considering the inflation conditions, hiring a quality talent pool for SMEs in Singapore can be a complex task to match the remuneration expectations.
On the other dimension, when there is an onsetting recession, it is a common tendency for the employment workforce to consider securing their existing jobs, and thus the competition or retention (due to competition or employee poaching) can reduce.
Priorities & Business That Change
Many SMEs in Singapore are mostly concerned with making money. Businesses still care most about making more money and keeping their cash flow positive.
However, some of the other key aspects highlighted as priorities are talent pool access, retention of employees, and dealing with the issues of inflation stands a greater priority.
SME Singapore faces several challenges and opportunities. Some of the biggest challenges as highlighted in the business environment reports are:-
- Competition: Singapore has a highly competitive business environment, and SME companies in Singapore may struggle to stand out against larger, more established companies.
- Limited resources: SME companies in Singapore often have limited financial and human resources, which can make it difficult to compete with larger companies.
- Access to finance: SME Singapore financing can be difficult to obtain, especially if the company is new or does not have a strong track record. Despite the fact that there is a distinct set of government initiatives in place to support SMEs in Singapore, businesses should be able to attain the requisite support.
- Talent retention and recruitment: Attracting and retaining top talent can be a challenge for SMEs in Singapore, particularly if they cannot offer the same benefits and compensation as larger companies.
- Issues of Digital Divide: The issue of the digital divide is the other critical aspect for the SMEs in Singapore, wherein many businesses are yet to leverage the digital enablement opportunities and missing on the scale of global business opportunities.
Some of the biggest opportunities for SMEs in Singapore include:
1. Government support
The Singapore government provides a range of initiatives and support programs to help SMEs in Singapore grow and succeed.
The rise of digital technologies presents significant opportunities for SMEs in Singapore to streamline their operations and reach new customers.
The pandemic has emphasized the importance of digitalization amongst businesses. The Singapore government has invested S$12.6 billion in Information and Communication Technology over the past 4 years, demonstrating a commitment to preparing for and embracing this new age of digital transformation.
The level of Information communication technologies (ICT) developments taking place in Singapore, leveraging on the digital business environment can help the organizations deal with issues of inflation and recession to some extent while garnering new client service opportunities.
Singapore is a hub for international trade, and SME companies in Singapore can take advantage of this to expand their businesses globally.
4. Niche markets
By focusing on niche markets, SMEs in Singapore can differentiate themselves and stand out in the highly competitive business environment.
SMEs Programs and Grants in Singapore
There are several government initiatives and programs in Singapore that support (Small and Medium Enterprises) SMEs of Singapore and provide them with opportunities for growth and development.
Some of these include:
1. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) provides financial assistance to SME companies in Singapore to adopt pre-approved productivity solutions, such as software, equipment, and consulting services.
PSG encourages integrated solutions that cover many industries, including customer management, data analytics, financial management and inventory tracking. This speeds up development and helps businesses maximize their efficiency.
To make your PSG application process smoother, have a look at the PSG Application Checklist for some helpful tips.
2. SME Working Capital Loan
The SME Working Capital Loan offers SMEs access to financing to meet their working capital daily needs. Get financial backing to bridge your working capital gaps. Up to $1m in loan funding, and the Government will cover 90% of the risk.
Starting from 1 October 2022, the enhancement of the EFS-WCL will be visible until 31 March 2023.
Read more about the parameter here.
3. Enterprise Development Grant
Also, the Enterprise Development Grant (EDG) helps SMEs in Singapore is accessible to upgrade and transform their businesses, such as through the adoption of new technology and processes.
Budget 2022 has been announced for the food services and retail sectors, with subsidies reaching up to 80% from April 2022 to March 2023. This is great news for businesses in the sector who are looking for additional help during the pandemic.
Submit your application through the Application Form: Follow instruction here.
4. Market Readiness Assistance Grant
As of December 30th, 2020, businesses can avail the benefits of Market Readiness Assistance Grant (MRA) to gain a presence in foreign markets through Overseas Marketing Presence (OMP).
This MRA grant is designed to help small and medium enterprises take their products and services beyond their native markets and reach a wider audience. It will provide them with the necessary financial support to ensure success in these overseas endeavors.
MRA Grant will be available to eligible businesses up to 70% until 31 March 2023, providing access to much needed assistance.
Use this helpful checklist to make sure you are fully prepared for what is ahead.
For SME companies in Singapore aspiring to do better by leveraging digital enablement, Exabytes Singapore can support consultation, development, and deployment of information systems infrastructure.
Last But Not Least
Are you a small and medium business owner looking to grow your business? Join Exabytes SMEsKickstart2023 and get the opportunity to go digital and accelerate your business growth.
SME Kickstart 2023 is a programme designed to help small businesses kickstart their digital journey. Through this program, we provide the necessary support and resources for businesses to take advantage of digitalization, such as online collaboration tools, eCommerce websites, and cybersecurity solutions, helping them reach new heights in their respective industries.
With our comprehensive range of services, you can be sure that your business will become more competitive in today’s digital world.