Small and Medium Enterprises (SMEs) are defined by the Singapore Government as businesses with a total annual revenue of less than S$100 million and fewer than 200 employees. SMEs are an important aspect of Singapore’s economy because they represent the backbone of the city-state’s corporate and business environment. There are three key criteria that decide whether or not your company qualifies as a small or medium-sized business.
The number of employees is measured in Annual Work Units (AWU). Include all full-time, part-time and seasonal employees in the staff total. Employees, persons working for the enterprise who are subservient to it, owner-cum-managers and partners involved in a regular activity in the enterprise and benefiting financially from the enterprise are all considered to be part of the staff. The following are the personnel headcount parameters for SMEs of various sizes:
- Micro-Sized: <10 AWU
- Small-Sized: <50 AWU
- Medium-Sized: <250 AWU
Value Added Tax (VAT) and other indirect taxes should not be included in the annual turnover. Your company must achieve either the yearly turnover criterion or the balance sheet criterion to be classified as a small business. The following are the thresholds for SMEs of various sizes:
- Micro-sized businesses have an annual turnover of less than S$ 3 million
- Small-sized businesses have an annual revenue of less than S$ 15 million.
- Medium-sized businesses have an annual turnover of less than S$ 75 million.
Annual Balance Sheet Total
The worth of your company’s key assets is represented by the annual balance sheet total. The following are the thresholds for SMEs of various sizes:
- Micro-sized businesses have a balance sheet total of less than S$ 3 million.
- Small-sized businesses have an annual balance sheet total of less than S$ 15 million.
- Medium-sized businesses have a balance sheet total of less than S$ 64 million.
SMEs in Singapore are classified as Autonomous SME Enterprises, Partner SME Enterprises, or Linked Enterprises based on these characteristics. The following SME Grant can be utilised by businesses for fostering a futuristic growth in Singapore.
SME Grants Singapore
- Productivity Solutions Grant (PSG)
Technology isn’t just about flashy, high-priced solutions. You may get a head start on your technological journey by automating existing operations and increasing efficiency. The Productivity Solutions Grant (PSG) assists businesses who want to improve their business processes by implementing IT solutions and equipment.
- Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) aids in the growth and transformation of Singapore businesses. Under the three pillars of Core Capabilities, Innovation and Productivity and Market Access, this award supports projects that help you update your business, innovate or expand internationally.
- Business Improvement Fund (BIF)
The Business Improvement Fund (BIF) aims to increase efficiency and competitiveness in the tourism sector by encouraging technological innovation and adoption, as well as the redesign of business models and procedures.
- Digital Resilience Bonus
Digitalisation is a critical enabler for businesses to boost their competitiveness and productivity and emerge stronger. It will also assist firms in being more robust to new post-COVID rules and adapting to them.
- Market Readiness Assistance (MRA)
Small and medium-sized businesses (SMEs) will benefit from the Market Readiness Assistance (MRA) grant, which will help them expand internationally.
- Skills Future Enterprise Credit (SFEC)
Employers are encouraged to engage in company transformation and personnel capacities through the Skills Future Enterprise Credit (SFEC). Over and above the support levels of existing programmes, eligible employers will get a one-time credit to cover up to 90% of out-of-pocket spending on qualifying costs for supportable activities.
Depending on the scale of operations and development goals of SMEs, they can apply for a variety of grants from the Singapore government. External funding opportunities are equally available for productive ventures for accelerated growth and development in Singapore.