The recently announced SME Centres and streamlining of support schemes address the needs of SMEs.
It is said that good things come in small packages. This certainly holds true for Singapore’s economy, where small and medium-sized enterprises (SMEs) are increasingly being recognised as critical drivers of growth and job creation. They contribute more than 50 per cent of GDP and employ an estimated two million people.
To ensure a thriving SME sector in Singapore, the recently announced Budget 2013 included a number of measures to enhance the support provided to SMEs. Two highlights were the expansion of the five Enterprise Development Centres (EDCs) into better-resourced SME Centres with service offerings of greater breadth and depth, and the streamlining of support schemes offered to SMEs.
Together, these two initiatives will play an important role in addressing the needs of SMEs and creating a more conducive business environment for them.
Enhanced support capabilities
The new SME Centres will strengthen the support and services offered to SMEs,and also create deeper and more direct
engagement with the SME community. To drive these enhancements, SME Centres will have more staff – 12 to 15 per centre, up from six to eight at the EDCs. Funding has also increased significantly, from $12.1 million to $32 million over three years.
This transition will see the SME Centres becoming integrated one-stop resource centres for SMEs. A key element of this change is the stronger interface across different government agencies. SMEs will be able to seek support for their internationalisation efforts from International Enterprise Singapore, assistance on HR development from the Workforce Development Agency, and aid for technology adoption from the Infocomm Development Authority – all at one location.
Partners from the private sector will also be engaged to enable the SME Centres to offer more in-depth consultancy and support services. For example, a collaboration with business advisory firm Stone Forest will see SME Centres offering Financial Management Clinics to SMEs.
In addition to the five main SME Centres, up to five satellite centres will be established to extend outreach to areas where there is a high concentration of SMEs. This expanded network will provide key services such as access to government programmes, business and productivity advice, business matching and networking.
These changes are an important step towards addressing SMEs’ need for more comprehensive and in-depth support. By making more services available at one location, the SME Centres also make it easier for SMEs to access the support they need. This improved accessibility is another key area that has been identified as crucial to the continued success of Singapore’s SMEs.
Schemes made simple
In the past, the many government support schemes, with their much narrower focus and qualification requirements, might have presented themselves as a barrier to some SMEs. “Some companies have highlighted that they were confused with the myriad of incentive schemes, their purpose and the qualification requirements. Others felt the effort taken to understand the schemes and apply seemed onerous,” explains Mr Victor Tay, Chief Operating Officer of the Singapore Business Federation.
To address this issue, SPRING has streamlined its various grant programmes into five broad categories: toolkits, vouchers, tax incentives, grants and loans. With only five options to choose from, it will be much easier for companies to zero in on the type of support they need.
Less hassle, however, does not mean reduced assistance from the government. The newly introduced Capability Development Grant (CDG) offers a wide range of productivity and capability upgrading support for SMEs – from branding, business strategy and human capital development to technology innovation, service excellence and the enhancement of quality and standards.
To supplement the streamlining efforts, the application processes for these programmes have also been simplified. For example, an 11-page application form has been cut down to two pages. It will also soon be possible to make and track
applications online, with templates and “how-to” guides to assist SMEs in the submission.
The streamlining efforts have already met with approval from SMEs and industry associations as a step in the right direction. “The business community welcomes the streamlining, which should make it easier to navigate the support offerings available to SMEs. In addition, the flexibility enables businesses to apply for these schemes with relative ease,” says Mr Tay.