Smes In Singapore Case Study

1. Introduction

Local enterprises are form as a small and medium enterprise, and it also called as SMEs. In Singapore, they are operating in all industries, sectors of the economy and it contribution Singapore economy are highly crucial, after that they need to foster any economy in their country. In 1 April 2011, SMEs will be determined as businesses with annual sales will not more than $100 million and will not employ more than 200 employees in Singapore. Nowadays, SMEs are defined as firms with employment size of 199 and below for non-manufacturing firms, fixed asset investment of$14 million and below for in manufacturing. In terms of number, SMEs are providing an important input into different economically many kinds of activities.

SMEs

SMEs are confronting many challenges in a globalized environment, for example from low productivity, lack of financing, access to management and technology, lack of managerial capabilities, heavy regulatory burden and among a lot of others challenges. Challenges of SMEs in Singapore can be summarized as follow: 1. Lack of an overall framework in terms of policies towards SMEs advancement.

2. Finite capacity to fulfill the challenges of market freeing and globalization.

3. There are too many institutions, or channels, for SMEs without valid coordination.

4. Lack of talented ad skilled workers, influencing the quality of production as well as productivity and efficiency.

5. Lack of strength to be the characteristic of the mainstream of industrial tendency.

6. Difficulties in examining form of financial support and

There is a high risk of SMEs are being eliminated if they do not enhance their competitiveness in the new swiftly developing world of globalization.

4. Steps to strengthen SMEs in Singapore

SMEs may set up some steps to improve price preference, opportunity to increase productivity, priority sector lending, innovate, provide of skilled labor, networking for increasing competitiveness, upgrade technology, upgrade capabilities and restructure and reformation of labor law, make local talent become stronger, after that they can remain grow and competitive.

Innovation-

Investment in innovative activities is increasing and faster rate for large company in SMEs. SMEs have been innovative in terms of enhance product process and designs and utilization of new technologies. SMEs may have to concentrate on innovation to generate some value, to differentiate themselves from each other, and capture more new occasion in the more competitive global market. Firstly, they are less bureaucratic producers than highly structured institution; Secondly, a lot of advances in technology build up a large number of detail creations in relating individual elements, fabrications techniques and