Smes In Singapore Case Study

1490 Words3 Pages
bulb-icon

Recommended: Definition of smes

1.0Introduction
SMEs is abbreviation of the small and medium enterprises meanwhile the collectively called of small enterprises and mediums enterprises, it occupies a number of more than 95 percent of enterprises in the whole word. In Singapore, the percent of SMEs is reach up to 99 percent of the companies, it represent and epitome most of the companies in Singapore. The definition of SMEs in Singapore in term of their numbers of employees and annual sales turnovers, business turnover are not more than $1oo million or the number of employees is less than 200. They hire the seven out of ten employees in labor and also make contribution in the nearly a half of Singapore GDP.
SEMs is the synonymous with innovation development and flexible, it …show more content…

Governments stating figure out and offer loan scheme and innovation transformation plan to assist SMEs. As a result, SME’s policy concept has undergone major transformation in Singapore and many other countries. Nowadays, SME sectors are become the leader of technical innovation and the future direction of the market competition. SMEs can change company system and creating new industries quickly and flexibility to innovative technology. In the end, those changes will provide optimum competition meanwhile rapid economic development in Singapore economic market. People can enjoy new technology and unlimited in the species of products. SMEs and customers both can avert the monopoly and limitation from major industry. The Singapore’s geographical limitations makes for SMEs reduce competition with the large factories, and use the benefits of trade port to sell to over the …show more content…

The financing sources of SMEs to use are quite single. There are two main type of SMEs to placement, respectively are Commercial bank loans and private loans in spite of Singapore have been provided some financing program. They are hardly to equity trading as well as offer public financing because of lack of direct market financing channels and low credit level in the meantime.

3.2 Difficulties in exploiting technology
As mentioned before, SMEs unable to apply for large and long-term Loan, it mainly used to solve temporary liquidity, rarely use in development the projects or exploit technology. Besides, they are lack of sufficient place to set up the new tech-machines or technical and professional manpower. Backward equipment cause the low product level due to companies is wanting in economic market competitiveness. On the other hand, backward equipments have been affected the environment for long times, such as higher Energy

Show More
Related

  • Lincoln Electric Company

    1203 Words  | 3 Pages

    These industry possess characteristics that protect the high profitability of firms, with that said, the threat of entrants within this market is relatively low. This makes entering the market difficult for new startup companies due to the high levels to entry barrier. One of the factors contributing to the barriers to entry is the high capital requirements that are needed in order to compete in the market. Large investments are required in acquiring facilities and maintaining them along with purchasing the expensive equipment relative to manufacturing welding products. Purchasing the equipment is not enough but new companies are also required to develop the advanced technologies before effectively competing in which is really time consuming. With these asset specificities, potential entrants are discouraged to commit to obtaining these specialized assets that have no other means of use or profitability if the venture fails. When existing firms acquire these specialized assets, they are more inclined to resist efforts by other competitors from stealing market share, therefore enhancing the competitive disadvantage for new entrants.

    Read More

  • Case Study Of Microstar Industries

    847 Words  | 2 Pages

    The leadership of an authoritative figure can create success or lead to failure in an organization. The medium-sized manufacturing company, Microstar Industries, has the ability to be successful and collaborative. But in order to achieve this goal, all departments and employees within the company need to work together cohesively and coherently. The following report will address the following problems determined in the sales departments:

    Read More

  • The Three Most Relevan Sins of Human Memory

    1566 Words  | 4 Pages

    For cognitive neuroscientists who study memory, it is a commonly accepted fact that human memory is imperfect. People regularly forget, misattribute, or confabulate information that is presented to them. In his seminal review, Daniel Schacter (1999, 2002) notes seven sins of memory. However, the three most relevant to this study are insufficient attention, misattribution, and pre-existing beliefs and biases.

    Read More

  • Small Business Case Study

    1917 Words  | 4 Pages

    In the 21st century, small and large, private and public businesses are all aiming towards economic growth. The small business marketplace is extremely dynamic and the changes are fast. Here are some facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses. In 2008, there were 627,200 new businesses that started, 596,600 businesses that were closed and 43,546 companies that filed for bankruptcy. According to business experts, of all the small business startups, one-third of them are profitable and successful, a third of them just about break-even and the rest of them are down with negative earnings Some buyer’s develops as independent business owners, while others are more likely to prosper as franchise owners. According to a recent report by the Small Business Administration (2007), the United States had approximately 26.8 million small business firms in 2006. In fact, as recently reported by Moutray (2006), most firms in the U.S., are very small and account for about half of the country's non-farm real GDP. Over the past decade small business has generated 60–80% of new jobs annually. In reality, there are easy answers to the independent business versus franchise dilemma. Although, a franchise system offers benefits to owners such as brand recognition, to inc...

    Read More

  • Guajilote Cooperativo Forestal, Swot

    1542 Words  | 4 Pages

    They cannot get a loan to buy the needed large equipment for further growth and efficiency.

    Read More

  • Environmental Sustainability Case Study

    1221 Words  | 3 Pages

    Incorporation of SMEs and International companies to better define, penetrate and gain access to both local and international

    Read More

  • Miller Tool Company

    1134 Words  | 3 Pages

    The management in the company is not structured. The cash position and contribution of various businesses into profit is also worrisome. We are in serious need of cash for the technological advancement in our tool business. The only way we can compete in the market is on the basis of technology. The inefficient production techniques lead to much higher cost of production.

    Read More

  • PESTLE Analysis Of Dubai

    1465 Words  | 3 Pages

    These factors encourage the SME to seek a non EU market and a central location where it can gain advantage from a lot of

    Read More

  • Poverty in Uganda

    1081 Words  | 3 Pages

    When a piece of machinery stops running, typically a mechanic inspects the damage and determines the cause of the problem, such as a faulty piece. The mechanic can simply replace the broken part and the machine is operating again as if as nothing ever happened; a nice and easy fix without causing harm to other parts or to the machine functions. However, poverty cannot be merely fixed. Poverty is a particular part in the machine, which can never be replaced, but the machine can never stop running even with a damaged part. The poverty piece can be damaged but the root of the problem can never be pinpointed. There are too many factors and possible causes of the problem, trying to fix only one would not have any beneficial effect on the machine. Therefore, the equipment might not have the highest efficiency rate or even operate correctly, resulting in a malfunct...

    Read More

  • Essay On IFRS

    1820 Words  | 4 Pages

    Small, medium enterprises (SMEs) are largest types business in the world, making up an estimated 99.7% of business. According to the Federation of Small Businesses (FSB) there are nearly five million existing businesses in the UK as of 2013. SMEs are a key contributor towards economic growth in terms of creating more employment, stimulating innovation and promoting social unity. SMEs are responsible for 47% of private sector employment, yet despite such global present there is still no agreed definition of a SME (Storey 1994). Bolton (1971) attempted to define them through a statistical and economic analysis. Classifications which are based on criteria, such as number of employees or annual turnover, however, do not remain consistent across borders. Given their size, smaller companies tend to be more intent on survival rather than expansion and profit maximisation. Smaller sized firms have always felt that the current reporting framework for IFRS is tailored more for the needs of larger companies and that the heavy cost burden it imposes upon them may not be entirely justified. In response to these concerns, the IASB subsequently issued the IFRS for Small and Medium-sized Entities (IFRS for SMEs) in July 2009. This standard offers an alternative framework which can be adopted by entities in place of the already extant full set of IFRSs or local national requirement standards.(Holt 2010) This essay will critically evaluate the impact of the IFRS for SME’s and whether or not it stands as the most suitable framework available for SMEs to use.

    Read More

  • Disadvantages Of Crowdfunding

    930 Words  | 2 Pages

    Before 1980 the only way to find the investment for any startups was banks and in 1980's there were investors who were interested in technology business. In this 20th century, small and mid-sized enterprises (SMEs) have a low income and are not easy to get capital or financing from any financial institutions or bankers, but startups have an option to find their investments through a strategy called Crowdfunding, a venture to raise money from various people. This review infers the content on influence of crowdfunding in small and mid-sized enterprises (SMEs). This review emphasis on how crowdfunding is growing in SMEs, what are advantages and disadvantages of crowdfunding and a case study on how a company from Indonesia raised their money using crowdfunding.

    Read More

  • The Development of Singapore

    623 Words  | 2 Pages

    Singapore is an island and a smallest country in Southeast Asia. Singapore is one of the “Four Asian Tigers” where the world major cargo seaport occurs. Despite the small size of the nation, Singapore economy have strong international trade link with capitalist mixed economy when the government intervention in the market is minimal (Economy watch, 2011).

    Read More

  • Essay On SME

    1315 Words  | 3 Pages

    Abe et al. (2012) argue that the importance roles of SMEs in overall economic development have been widely recognised both in developed and developing countries. Hence, they conclude the development of SMEs has been crucial in recent decades and there are some general objectives of SMEs development: (1) create jobs and generate income; (2) improve SME performance and competitiveness; and (3) increase their participation in and contribution to the national economy. Undoubtedly, SMEs play significant role as one important segment of world economy, especially in Asia, whether in developed and developing countries. As seen in Figure 1, SMEs dominate the constitution of business environment in emerging economy. However, SMEs appear to face significant

    Read More

  • Small Business Management

    1533 Words  | 4 Pages

    There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).

    Read More

  • Sources Of Finance Essay

    721 Words  | 2 Pages

    Sources of finance to cover the long term consist of owners who invest funds in the company. For partners and sole traders this can be their savings. For businesses, the money invested by shareholders is named share capital. Another long term source of finance is loans that can come from the bank or either family or friends. Furthermore, another long term source is debentures which are

    Read More

More about Smes In Singapore Case Study

Open Document