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20 March 2008
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START-UP
SURVEY SHOWS SINGAPORE ENTREPRENEURS SHOWS SINGAPORE ENTREPRENEURS ARE NO QUITTERS!
Despite rising costs and competition, 84% of entrepreneurs say they would not give up their business for a safe job
Start-ups encourages to leverage technology to boost productivity
20 March, 2008 [Singapore]-– Life as an entrepreneur can be daunting with high rental costs, rising raw material prices and
competition all testing the business owner’s commitment to their venture.
And yet the vast majority of Singapore’s entrepreneurs will not quit their own business for a safe job working for someone else.
This is the key finding of the second
DP Information - ACE Start-up Enterprise Survey (STEPS) released today.
The survey was conducted by DP Information Group – Singapore’s leading provider of business and credit information – with the Action
Community for Entrepreneurship (ACE) as the strategic partner. Both Infocomm Development Authority of Singapore (iDA) and SPRING Singapore
are supporting organisations.
With 1,521 businesses and companies participating, the survey is a comprehensive snapshot of the issues faced by Singaporean enterprises that
have been in operation for no more than 3 years.
According to the survey, the biggest obstacles in setting up a new enterprise are Raising Capital, cited by 49% of respondents, Set Up
Activities and Costs (22%) and Manpower Issues (11%).
Once an enterprise is up and running, the entrepreneur is faced with a whole new set of challenges to sustain the business beyond the third year.
The most widely cited concerns being Rental Costs (60%), High Cost of Raw Materials/Goods (37%) and Competitive Pricing (35%).
Ms Chen Yew Nah, Managing Director of DP Information Group said the survey confirms the entrepreneurial spirit is alive and kicking in Singapore.
" It takes guts and determination to grow a business from scratch. This survey shows Singaporeans are prepared to stay the distance and not
give up their business dreams."
" With a shortage of manpower in many industries, the temptation is there to walk away from your business and obtain secure employment working
for someone else. But 84% rejected this option. The survey shows Singaporeans are no quitters." Ms Chen said.
Miss Chen adds, " The effort to encourage more entrepreneurs among the younger Singaporeans is working. Among this year’s respondents,
close to one-fifth (19%) are under 30 years of age."
A majority (65%) of Singapore’s entrepreneurs are young - under the age of 40 - with 74% having a tertiary qualification, degree or postgraduate degree.
According to the survey, 52% choose to do so in order to pursue their own interests. By making their passion their work, entrepreneurs can achieve amazing
levels of job satisfaction.
"The survey shows having drive is more important than having money as 82% of start-ups commence operations using less than $100,000 in capital,
while 62% rely on less than $50,000," said Ms Chen
" We applaud the tenacity of our start-ups in persisting with their entrepreneurial aspirations. The commitment and resilience of our entrepreneurs
augur well for Singapore's desire to become a vibrant entrepreneurial society ", said Mr Inderjit Singh, Deputy Chairman, Action Community
for Entrepreneurship.
" While the landscape going forward continues to be challenging, we are confident that those who can add value to their customers will
continue to thrive and grow. This survey demonstrates how internationalisation and technology adoption are two key areas that start-ups
can consider to move up the value and profit chain faster."
LOW LEVEL OF TECHNOLOGY ADOPTION
A point to note is the low level of technology adoption by start-up enterprises.
Only 5% feel the need to keep their technology up to date. And 62% do not even have a website
for disseminating information about their company while 61% are still doing their accounts without
the use of dedicated software. Broadband internet access is widespread with 63% using it in their business.
The majority of start-ups have no plans to incorporate technology in important areas such as Human Resources and Payroll
(69%), Point of Sale System (68%), Integration with suppliers or manufacturers (78%) or Customer Relationship Management (72%)
and Inventory Management (73%).
Importantly, there is a correlation between the use of technology and higher net profit. The survey found 50% of those generating a net profit
of $200,000 to $500,000 were highly dependent on technology. For companies earning more than $500,000 net profit, 35% are highly dependent on technology.
Conversely, 37% of companies with low levels of technology reliance are making losses.
RECOMMENDATIONS
To assist the members of the start-up community, DP Information Group make the following recommendations:
1. The Need To Encourage Technology Adoption Among The Start-Ups
DP recommends encouraging start-ups to adopt technology early. Technology adoption will increase their efficiency. Grants and
other training assistance should be given to start-ups to assist them to use technology. Awards for start-ups that
successfully adopt technology can be used to inspire other start-ups.
2. Facilitate Staff Training and Create Awareness of Training Grants
DP recommends start-ups leverage on the various government training grants currently available and, where feasible,
for more training funds to be specifically offered to start-ups, especially those willing to spend time to learn how to
adopt technology in their business processes to maximise efficiencies.
3. Awareness of Government Assistance Schemes
Only slightly more than half of the start-ups are currently aware of some form of Government assistance scheme.
Considering the low level of awareness, it is not surprisingly to note that 60% of the start-ups are asking for more
Government Schemes targeting the start-up community. DP recommends that there be more start-up focused Government assistance schemes,
specifically tailored for only those in operation for no more than three years.
4. Platform For Pooling Of Resources
The introduction of a platform for pooling resources could assist the 58% of start-ups
currently not employing any business process staff and another 15% who are relying on
only one business support staff to support its operation.
DP recommends appropriate parties start a service centre to pool resources which would include
functions such as recruitment, corporate secretarial, book-keeping, accounting, procurement, inventory management,
storage and logistics services.
5. Sharing Experience – Showcasing Successful Start-Ups
Showcasing successful start-ups has many benefits. In addition to inspiring more entrepreneurs, these success stories
can be used as a benchmark for other start-ups.
START-UP ENTERPRISE CONFERENCE 2008
In support of the start-up community and aspiring entrepreneurs,
DP Bureau - a subsidiary of DP Information Group – together with the Accounting and
Corporate Regulatory Authority (ACRA), will hold a full day Start-Up Enterprise Conference
on Friday April 4, 2008.
Held at the NTUC Auditorium between 8.00am and 5.00pm, the Conference will bring together
an unprecedented line-up of experts to advise and assist aspiring and existing entrepreneurs.
The organisation that will be represented at the conference include: ACE, ACRA, CPF, DP Bureau,
SPRING Singapore, IDA, IE Singapore and IRAS. The morning session will feature keynote speeches
and presentations while the afternoon session will give attendees a choice between general business
and finance related topics or business regulatory topics.
All media are welcome to attend.
END
**************************************************************************************************
Contact: Matthew Shaw
Dawn Koh
Rubicon consulting
DP Information Group
D: 6465 3029
D: 6507 2341
H: 9851 9340
dawnkoh@dpgroup.com.sg
matthew@rubicon.com.sg
ABOUT DP INFORMATION GROUP
DP Information Group (DP Info) is Singapore’s leading credit and business information bureau.
A veteran of nearly 3 decades, we currently service 95% of Singapore’s financial institutions and
some 75% of leading law firms. Through our 24/7 online information portal, QuestNet,
we enable our clients to make confident credit management decisions everyday based on
comprehensive, accurate and reliable information.
DP Info Group is a partner with NYSE-listed credit analytics corporation, Fair Isaac,
offering DP-FICO® Score, a credit management score for the national credit consumer
market. It is also a developer of DP Credit Ratings, its own proprietary corporate
credit ratings model based on the global probability of default approach.
DP Info is a strong advocate for the SME and entrepreneurial segment, managing and
operating an ACRA-appointed service bureau, DP Bureau, which assists SMEs and
entrepreneurs in starting their business and operating them effectively and
efficiently through their initial years.
Information Services
- Corporate / Individual Information & Litigation Searches
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www.dpgroup.sg
ABOUT ACE
The Action Community for Entrepreneurship (ACE) is a movement that involves
both the private and public sectors to create a more entrepreneurial environment
in Singapore.
It was launched on 26 May 03 in response to the Economic Review Committee's (ERC)
recommendation of remaking Singapore into "a creative and entrepreneurial nation
willing to take risks to create fresh businesses and blaze new paths to success".
ACE brings together a diverse group of people from the private and public sectors with a common
vision of a more entrepreneurial Singapore. With this, ACE seeks to be a change agent in building
a more pro-enterprise environment through:
a. Facilitating discussion and debate on the regulatory framework;
b. Changing culture and mindset;
c. Improving access to finance; and
d. Facilitating networking and learning.
Under ACE, there are four action teams called Action Crucibles (AC) - focusing on specific
areas on entrepreneurship to strategise and drive the implementation of the programmes and
initiatives:
· Culture & Education AC
The role of this AC is to foster a more entrepreneurial culture in Singapore.
This AC currently is co-led by Ms Elim Chew, President / Founder, 77th Street Pte Ltd
and Dr Antony Ng, CEO, D’ Crypt Pte Ltd.
· Financing AC
The role of the AC is to improve SMEs' access to financing by developing a spectrum of
financing instruments and a business environment that is conducive to supporting financing
for SMEs. This AC is led by Mr Inderjit Singh, MP and CEO, Infiniti Solutions Pte Ltd.
· Rules AC
The role of this AC is to lower the regulatory burden on businesses through existing
pro-enterprise government initiatives and to seek feedback on rules affecting businesses.
This AC is led by Mr Patrick Daniel, Editor-in-Chief, English and Malay Newspapers Division
,Singapore Press Holding.
· Internationalisation AC
The role of this AC is to provide focused and high quality advice to companies on their
overseas venture. It is led by Mr Richard Eu, Group CEO, Eu Yan Sang (International) Ltd.
www.ace.org.sg
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