If you are an owner of a small and medium enterprise (SME), there will come a point when you start to ponder whether expanding your business overseas should be the next business step to take. What are the key considerations before you embark on that plan?
By the myBusiness techblog team
Government Support for Businesses
Being a company originating from Singapore has its advantage on its own. Besides having a stable economy and world-trusted political landscape, Singapore government implements grants and schemes to help SMEs enter overseas markets faster and easier.
Through the trade agency International Enterprise (IE) Singapore, the Market Readiness Assistance Grant is just one of the initiatives the trade agency has adopted to help Singapore companies focus more on internationalisation. It also regularly holds events on tapping new markets.
SPRING Singapore also has a scheme called Partnerships for Capability Transformation (PACT), which was just expanded beyond the manufacturing sector. The new scheme will support collaboration between SMEs and large enterprises, in areas covering co-innovation, technology test-bedding and knowledge transfer.
This is aimed at helping SMEs expand their business beyond our shores as well, by helping them adopt the best practices of bigger firms that have found success.
Expanding and Innovating in New Markets
One way that SMEs can expand is through bringing an innovative idea to market, so that they can get a foothold in the global arena. Innovation can also give birth to new products and services that consumers may not even have known of previously.
Can SMEs in Singapore generate that sort of innovation? That means growing through innovation, not necessary creating new products and services that can be exported to regional markets. This is possible, if they can pick up some of the new technologies being developed right at their doorstep.
Innovation can set SMEs apart. Small businesses are able to iterate faster – big businesses are slow to react sometimes. Take advantage of that and be quick and innovative and move into new markets.
Taking a leaf from Silicon Valley, small companies there have expansion plans from Day One. Even when they are pitching to investors with just a simple idea or business plan, the entire business is focused on expanding beyond even the huge market that is the United States, and onwards to India and China.
It’s a relevant lesson for SMEs here in Singapore as well. Startups should already think of expansion from Day One, and not just growing into new markets but also with new innovations driving products and services never before seen.
There are also technological advantages that can help move businesses from a local market player into a regional or global player. Look at the sheer amount of e-commerce transactions flowing through China, for example; the virtual marketplace is a ground leveller. Any startup can set up shop on the global scene with a good website.
Start forming your expansion plan today and seek out the relevant grant and schemes right at your doorstep.