Please enable JavaScript.
Coggle requires JavaScript to display documents.
FACTORS AFFECTING INTERNATIONALISING OF SINGAPORE SMEs (Access to…
FACTORS AFFECTING INTERNATIONALISING OF SINGAPORE SMEs
Access to financing
In the past
Large bank focus more on lending money to
Larger firms as they think that larger firms = less risk
Present
There are banks with departments specialising in lending to SMEs
Venture capital companies and venture "angels" that are willing to invest in SMEs and start-ups in exchange for
equity and opportunity of participating in a public listing on stock exchange
Employment
Past
Many fresh graduates preferred working in MNCs or larger firms or the government for
Higher salaries and job security
Present
Government is encouraging fresh graduates to consider joining SMEs through
Changing views of job seekers through campaigns
Strengthening the human resource management capabilitiesof SMEs
to attract, recruit, train and retain talents in SMEs
Profiling better career opportunities in SMEs through career fairs, and training programmes catering for SMEs
Utilisation of technology and innovation
SMEs should rely on efficient technologies and innovative solutions to reduce costs and increase performance
Government offer assistance schemes to help SMEs to access relevant technologies to improve productivity
Technology have given SMEs access to global information and global markets.
SME can simply set up a website and start selling internationally
Globalisation and competition
Free Trade Agreement (FTA)
FTA open up busines opportunities to SMEs by...
Giving SMEs easier entry into export markets
Ensure business stability by having clear rules, regulations and laws
Making exports cheaper compared to non-FTA countries
Government has also reduced business regulations to ensure that Singapore is an easy place to set up a company
Limited Access to market information
Most SMEs have limited access to market information on new and overseas markets
Even though information can be easily obtained nowadays, not all are reliable or up to date
Therefore, SMEs need time to search through the internet and verify the content
Limited Access to Export market
SMEs have good business contact locally but they may not have right contacts for potential markets overseas
Manage workers abroad
Due to culture differences, SME might face difficulties managing workers abroad
Management and motivation
If SMEs choose to recruit overseas employees, the new staff may not be familiar with the industry or the operations
Existing employees who are sent over may not have relevant experience in dealing with such authorities
Hence, leaders use a range of appropriate incentives
Performance bonus
Stocks and shares in the company
Healthcare coverage
Training
Good salary
Clear progression path
Non-monetary benefits
Opportunity to provide feedback
Good supervisors
Good colleagues
Right work culture that benefits company and staff
Trade restrictions and non-trade barriers
SMEs should take note of any changes in trade and non-trae barriers in their target countries and industries for business
Social-Cultural Factors and intentions
Even though starting a business may lead to success and wealth, there may be a possibility for failure
The probability of success is 5-10%. Hence, it may scare off potential entrepreneurs from setting up an SME