In 2022, small and medium-sized enterprises (SMEs) account for 99% of all enterprises in Singapore. Given their substantial employment of the local workforce and significant contribution significantly to the economy, it is no surprise that the government is keen to support these businesses through their growth and development.
Read on to learn more about the various government initiatives design to support SME and why it is essential for SMEs today.
Definition of SMEs
There are three essential requirements businesses must meet to fulfil to qualify as an SME in
Singapore:
1. Possess a minimum of 30% local ownership.
2. Maintain an annual turnover that does not exceed $100 million.
3. Keep the employee count on the payroll below 200.
Productivity Solutions Grant (PSG)
The PSG is an initiative administered by Enterprise Singapore (ESG) that supports SMEs adopting IT solutions, equipment, and consultancy services to improve business processes and productivity. Applicants can choose from a list of pre-scoped solutions from pre-approved vendors.
With the assistance of PSG, SMEs with limited resources can successfully implement strategies like advanced digital marketing or operation optimisation.
The PSG funds up to 50%of qualifying costs.
Productivity Solutions Grant-Job Redesign (PSG-JR)
PSG-JR is an initiative encouraging businesses to undergo job redesign, which may involve adding or removing certain tasks, shifting employees to different roles, and introducing autonomy and authority. With job redesign, companies can stay ahead of the competition and maintain their relevance over the years.
Eligible enterprises can receive up to 70% subsidies for consultancy services.
SkillsFuture Enterprise Credit (SFEC)
Administered by SkillsFuture Singapore (SSG), SFEC encourages businesses to invest in enterprise and workforce transformation. The former refers to initiatives supporting business development and productivity, while the latter consists of job redesign initiatives and training programmes by SkillsFuture Singapore and Workforce Singapore.
Eligible enterprises can receive up to 90% funding support for their out-of-pocket expenses. This initiative could also serve as an additional resource in addition to PSG-JR, offering an additional grant coverage for SMEs engaging in job redesign efforts.
Career Conversion Programmes (CCP)
CCP aims to reskill mid-career workers so that businesses can meet their manpower needs.
There are three modes of CCP:
1. Place-and-Train: Mid-career individuals are hired by the participating employer before training.
2. Attach-and-Train: Mid-career individuals undergo training prior to job placement.
3. Redeployment/Job Redesign Reskilling: Workers in a company going through business transformation are trained to take on new or redesigned job roles within the same company.
CCP provides up to 90%salary and course fee support.
Enterprise Development Grant (EDG)
ESG also administers the EDG, which supports SMEs in innovating, upgrading, and growing their business. It is one of the most wide-ranging SME grants available in Singapore, covering projects focusing on core capabilities (i.e., strengthening SMEs' business foundations for growth and transformation purposes), innovation and productivity (i.e., supporting SMEs pursuing new areas of growth or methods to improve efficiency), and market access (i.e., supporting SMEs planning to venture overseas).
Compared to the PSG, EDG covers a broader range of digital transformation projects and is not limited to pre-approved solutions.
Market Readiness Assistance(MRA)
The MRA is administered by ESG and assists businesses that aim to expand overseas. It does so by covering the costs of overseas market promotion, business development, and market set-up activities that help SMEs grow internationally.
An applicant is limited to one activity in a single overseas market.
The MRA funds up to 70% of qualifying costs, up to $100,000 per company per new market.
Conclusion
For SMEs seeking a competitive advantage, the Singapore government provides valuable support through these initiatives. This guide aims to enhance the understanding of the how the grants can benefit SMEs and assist them in their business transformation.
Exploring grant opportunities and reaching out to consultancy firm like LiT Strategy could be beneficial. LiT Strategy offers top-notch strategy consulting services, including expertise in EDG grant consultancy and PSG Job Redesign advisory services. Feel free to explore our services for strategic guidance and consultation.