Government Financial Support on SME's

Whether you already have a business or you're starting a new one, it is important for entrepreneurs to choose the right financial option or support. In order to do so, entrepreneurs needs to set different measures by planning, weighing the pros and cons of the various financial support options and selecting the one that fits their business needs.

In some countries such as Singapore, government place a huge amount of their annual budget to provide SME grants to local business in order to encourage entrepreneurship within the country. Currently, there is over 100 financial programs available for business in Singapore and a huge portion of it are structured to promote collaboration between businesses. To give you more idea about this, I've listed some of the SME grants that is currently being offered in Singapore.

Special Employment Credit (SEC) is a SME grant that enables businesses to hire employees that are over 50, by doing so, businesses are qualified to receive a payout of 8 percent of every employee over 50 years of age earning up to 4K USD per month. Not only business adds valuable experience by hiring employees over 50 but they are also earning extra money as well.

Productivity and Innovation Credit (PIC) is a type of SME grant that provides tax incentives to business who has facilities and equipments that automates the basic work processes, such as facsimiles, laser printers and scanners. Aside from the 100 percent write-off for 1 year, companies will also receive a 400% deduction from their start up or a cap of 400K of total expenditures for every PIC qualifying activities that their company do.

Technology Enterprise Commercialization Scheme (TECS) is a type of financial scheme that encourages the establishment of technologically-innovative businesses who has a unique Intellectual Property and measurable business paradigms.

Micro Loan Program (MLP) is a financial scheme that is structured to primarily support small business. Under MLP, businesses run by 10 employees or less or have a turnover less than 1M Singaporean dollars can be granted with a loan that will cover their operational expenses amounting to 100K Singaporean dollars and tenure of 4 years.

Work-Life Works! (WoW!) Fund is a type of grant that encourages companies to provide a flexible work arrangements to their employees in order for them to create a balance between the professional and personal life. Under the said scheme, companies are given with an aid amounting to 20K Singaporean dollars that can be used to cover their training needs, minor infrastructure renovation that can lessen manual labor, and work-and-life consultancy services.

Inclusive Growth Program (LGP) is an SME grant in which the government will be the one who will pay up to 90 percent of the company's expenses that is related to the improvement of your company's productivity level.