What are the Business Challenges for SMEs in Singapore? | Bestar Services

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What are the Business Challenges for SMEs in
Singapore?
Bestar Services Pte. Ltd
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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• Small Medium Enterprises (SMEs) have
  proliferated in Singapore in the last one decade.
  They are the backbone of Singapores economy,
  contributing over 50 to Singapores GDP and
  providing employment to over 70 of the local
  workforce. There are over 3,00,000 SMEs in
  Singapore, and more than 80 are locally owned.
• According to Singapores Ministry of Trade
  Industry, an SME is defined as a corporation with
  an annual sales turnover of less than S100
  million and has less than 200 workers employed.
• SMEs provide massive support to Singapores
  economic advancement by enhancing innovation,
  bringing new technologies to local markets,
  keeping the local markets engaged with new
  trends, and more.
• Despite all this success, an enormous
  contribution to GDP, and astonishing numbers,
  there are several challenges faced by SMEs in
  Singapore, which we will discuss in this blog..

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• Challenges Faced by SMEs in Singapore
• Some primary business challenges SMEs face in
  Singapore are concerns about the competitive
  business landscape, rising operation costs,
  limited resources, competition from large-scale
  businesses, and hiring retaining talents. Let
  us walk you through them.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• 1. Rising Operation Costs
• Managing the rising operation costs is a critical
  business challenge that SMEs face in Singapore,
  and it has worsened due to covid-19 pandemic. In
  2022, many SMEs had insufficient cash flow in
  Singapore. With rising inflation, materials
  utilities costs increasing, and recession
  possibility on cards, SMEs find it arduous to
  manage cash balance.
• We recommend cutting down expenses wherever
  possible and outsourcing salient business tasks
  such as HR Payroll Services, Accounts
  Bookkeeping Services, and Financial Audit
  Services. It will help you alleviate the need to
  manage required resources, software, and tools
  for them and regularly update them.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• 2. Competition from Large-Scale Companies
• SMEs have pressure to constantly innovate,
  upgrade, and offer unique products services to
  their customers to stay ahead in this competitive
  market and growing competition from large-scale
  companies.
• With large-scale companies continuously investing
  in enhancing their customers overall experience
  with their products services, it is challenging
  for SMEs to stay ahead with fierce competition.
• SMEs can focus on niche markets to capture that
  segment to cope with growing competition from
  large-size companies.
• We recommend outsourcing salient back-end
  business tasks to Bestar Services and investing
  the saved time, cost resources in your core
  business activities.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• 3. Raising Funds
• Another business challenge SMEs face in Singapore
  is raising funds to grow their business in fierce
  competition. The best way to overcome this
  challenge is to hire a professional business
  advisory consultant who will guide you with
  potential funding sources and help you select the
  best one for your business.
• Business Advisory Consultancy will also guide you
  with various government incentives that you can
  cash on to foster your businesss long-term ROI
  and sustainable growth.
• At Bestar Services, we provide comprehensive
  business advisory services in Singapore. Our
  highly qualified proficient business advisory
  consultants will guide you on potential funding
  sources various government incentives for your
  SME.
• You can refer to our other blog on how to raise
  funding for your business in Singapore for
  reference to raise funding.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• 4. Limited Resources Workforce
• Limited resources, skilled talented workforce,
  upgrading them, and retaining them is another
  critical business challenge SMEs face.
• It is pivotal for any SME to constantly upgrade
  their resources, including training development
  of the workforce, updating software tools, and
  upgrading their infrastructure to cope with the
  changing business environments fierce
  competition.
• We recommend outsourcing your salient business
  tasks to us, such as HR Payroll Services,
  Accounts Bookkeeping Services, and Financial
  Audit Services and utilize the saved time, cost,
  and resources on core business activities. We
  will handle your salient back-end business tasks
  and give timely reports for the outsourced work.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• Key Business Opportunities for SMEs in Singapore
• Apart from the above business challenges SMEs
  face in Singapore, let us walk you through key
  business opportunities for SMEs in Singapore.

• 1. Taking business digital
• Post-pandemic in 2020, businesses have shifted to
  digital platforms, and customers primarily prefer
  online platforms for shopping rather than offline
  due to the ease of convenience luxury of
  comfort.
• With accelerated digitalization and consumers
  preferring online stores, we recommend taking
  your business digitally and enhancing their cash
  reserves by earning revenues from E-Commerce
  platforms.
• Refer to our other blog on how to start an online
  business in Singapore in 7 easy steps for your
  reference.

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore

• 2. Green Initiatives
• With the world moving towards sustainability,
  businesses should adopt this approach and Go
  Green. It is pivotal to adopt a sustainable path
  for long-term growth success for your business.
• SMEs in Singapore can become part of the green
  transition in Singapore by utilizing resources
  allocated to RD for urban solutions
  sustainability. SMEs can even take advantage of
  various financial aid schemes such as National
  Environment Agencys (NEA) Energy Efficiency Fund
  (EEF) and Green Sustainability-linked Loan
  Grant Scheme (GSLS).

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What are the Business Challenges for SMEs in
Singapore?
Tax Planning While Being In Singapore
Conclusion

• After reading the blog, you will have a
  comprehensive understanding of business
  challenges faced by SMEs in Singapore, tips to
  overcome them, and key business opportunities for
  SMEs in Singapore. However, if you need more
  guidance and business advisory consultation, feel
  free to contact us.
• At Bestar Services, we provide comprehensive
  business services related to HR Payroll,
  Accounting Bookkeeping, Financial Audit
  Assurance, Company Incorporation, Business
  Advisory, Tax Advisory Compliance, and more.
• We aim to reduce your business tasks by taking
  off the load of salient business services.
  Outsource your business tasks to us, and invest
  the efforts, resources, time, and cost to grow
  your business. For any questions regarding our
  outsourcing services for SMEs and quotation,
  contact us at 65 62994730 or email at
  admin_at_bestar.asia.
• Refer to our other blog on Popular Business Side
  Ideas for Side Hustlers for 2023 in Singapore for
  your reference.

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