Financial Concerns of SMEs in Singapore
A business at its infant stage faces a slew of expenses including research, monitoring market trends, and procuring supplies. Seasoned business owners may have a network of bankers, but receiving finance can be difficult for upcoming entrepreneurs. Singapore is one of the countries with a favourable business environment. From taxes to a trained labour force, its market climate is still favourable. Its support for many entrepreneurs remains unrivalled by its neighbours.
Furthermore, Singapore encourages the growth of many Small and Medium Enterprises (SMEs). Thanks to the Singapore government’s proactive effort in assisting them. SMEs can compete in the global market despite fierce competition. In this post, Business Grants– Singapore’s pioneer Business Management Consulting service, takes a look at how SMEs can securely finance their businesses using various SME grant available.
SME Grants Singapore
Singapore remains one of the top SME-friendly countries in Asia Pacific. Aside from its strong economic growth, it enjoys a favourable tax environment. Furthermore, the government is taking a proactive approach to promoting SME growth. Business Grants– business consultant Singapore throws light at some of the SME incentives and government subsidies available in Singapore.
Productivity Solutions Grant (PSG)
SMEs account for 48 percent of Singapore’s GDP, making them one of the country’s most important economic cornerstones. As a result, their productivity is critical to sustaining vigorous economic growth. The government has prioritised SME productivity and globalisation since the early 2000s. The Productivity Solutions Grant is one of its most popular incentives.
The PSG assists SMEs in adapting to IT technologies for automating business activities. It delivers information technology solutions to businesses such as food, logistics, engineering, and retail. It also aids in client management and data analysis. It offers solutions for financial and inventory management to improve resource tracking.
Several government organisations, including the National Environment Agency and Enterprise Singapore, have already pre-scoped PSG solutions. As a result, these solutions have previously been tried and tested. Currently, the government offers a maximum level of support of 80%.
Business Improvement Fund (BIF)
The Business Improvement Fund (BIF) encourages the use of new technologies and the development of new products. It intends to restructure and automate the business models of SMEs. The productivity and competitiveness of SMEs will improve as a result of this platform. However, unlike the PSG, the BIF focuses on tourism and works to strengthen the fundamental competencies such as business strategy creation, financial administration, human capital growth, redesign of product development automation process, financial administration, human capital development service excellence and strategic brand and marketing development.
Digital Resilience Bonus (DRB)
Because of the pandemic, businesses and consumers have gone online. The majority of commercial activities, such as marketing and payment, are conducted online. With the arrival of the Internet of Things (IoT) age, digitalisation assists in keeping up with the fast-paced environment. Singapore’s government wants to help small and medium-sized businesses go digital.
The Digital Resilience Bonus (DRB) will boost SMEs’ digital skills. It focuses on the food services and retail industries, which are impacted by pandemic and post-pandemic changes. Given the safety precautions, physical separation has an impact on their production and revenue.
Market Readiness Assistance (MRA)
Market Readiness Assistance Grant will provide a boost to SMEs on a global scale. Because globalisation is a government priority, this MRA grant aims to help enterprises expand internationally.
MRA, once granted, covers maximum eligible costs of 70%, with a cap of S$100,000 per firm per new market. Overseas market promotion, overseas company development and setup of an overseas market are all funded with separate grant ceilings.
SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit entices business owners to invest in enterprise transformation and capability development. Qualifying for this grant entitles a S$10,000 credit. This sum will cover 90% of program-related expenses.
Business owners must ensure that they have produced the relevant documentation to apply for the SME grants Singapore described here. Business Grants Singapore with years of experience in business management consulting can help understand SME grants Singapore and file successful applications. As a pioneer business consultant Singapore, we help business owners streamline business grants selection, application and management. Get in touch with our experts to know more about eligibility criteria and process of each SME grant in Singapore.
