Characteristics Of SME In Singapore

1. Introduction

• Characteristics of SMEs in Singapore.

In the Singapore, most of the SMEs (Small and Medium Enterprises) are concentrating on the producing small amount of products and services. And because they produce small amount, Singapore SMEs have better ties between the business partners. Also due to the small land size, if there are some problems between customers and SMEs, Singapore SMEs arrange necessary changes faster to the customers.

Another characteristic is that Singapore government’s support to SMEs. Too low support from government will not make motivations to build new SMEs. However, too much support from the government will make low economic independence to the SMEs.

• What do SMEs mean to Singapore economy?

An economy

Contribution of SMEs in Singapore According to the Spring Singapore (New SME Definition and Launch of New Online Tools and E-Services, 2011), SME is those enterprises with annual sales turnover of not more than $100 million and less than 200 workers. In the Singapore, SMEs are very important to the Singapore’s economy. The primary reason why SMEs are important in Singapore’s economy is there are approximately 130,000 SMEs in the Singapore. This means that about 99% of the Singapore companies are SMEs. And, SMEs are contributing about 50% to the GDP (Gross Domestic Product).

In the Singapore, SMEs are usually owners’ own brands. If the brand is owners’ own brand, SMEs can easily differentiate brands from others. This will make SMEs’ brands more competitive and it can create wealth to SMEs. Also, if the SMEs in Singapore will be successful, Singapore’s economy will be helped. For example, Singapore’s GDP will be

When a company does marketing, they should have well planned marketing strategies and enough capital. But, for most of the SMEs in Singapore, cannot concentrate on the marketing because they usually do not have marketing manager who will make strategies for marketing and promotions. Also for the financing, SMEs need to have professional accountants to supervise systematically the budget. However, most of SMEs do not have professional accountants. If SMEs cannot spend their budget strategically, SMEs will lose their own competitiveness.

Entrepreneurship Fourth constraint is lack of innovative entrepreneurship. According to the Joseph Schumpeter, “Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services” (Joseph Schumpeter 1934). However, People in the Singapore usually want to establish business that is very stable and less risked, which is not innovative. If entrepreneurs try different sort of things, but if the business fails, it will bring huge financial difficulties and frustration to the entrepreneurs economically.

4. Steps to strengthen SMEs in Singapore.

• Price