Smes In Singapore Case Study

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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

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