How can Singapore SMEs be more competitive?

If you're an SME (Small and Medium-sized Enterprise) owner, you are probably facing the labour crunch, foreign manpower influx restraints, and increasing costs as some of your challenges.

However there is no better time than today to rethink the way you're doing business. The economy is doing alright and there is a wide range of assistance from the government, unions, and trade associations.

How can SMEs be more competitive?

1.       Feedback to government what you need

Do you think funding agencies should simplify the many processes involved in obtaining grants?

SMEs complain that there are many forms to fill and checks to complete before a grant is approved. Some SMEs simply do not have the time to complete the process and hence do not follow through with it.

SMEs have provided feedback to Labour Member of Parliament Yeo Guat Kwang, who in turn called on the government during the Budget Debate to simplify the processes involved in obtaining grants so that more SMEs can benefit from the schemes.

2.       Learn how others did it

Talk to other SMEs to find out how they stayed ahead of challenges and opened new markets for their business.

In his Budget Debate speech, Mr Yeo cited local F&B operator A-One Claypot which tapped on the e2i's Inclusive Growth Programme (IGP) for 50% funding for their productivity projects.

A-One Claypot used to have a crowded A4 sized menu which confused staff on exactly which dish the customer ordered, often resulting in wrong orders which wasted time and food.

They approached IGP which quickly helped them get funding to improve their menu design. With clear pictures of dishes spread out in a multi-page menu, staff made fewer errors when taking orders.

A-One Claypot's staff used to spend the mornings stuffing newspapers and cardboard under wobbly table legs to stabilise them, resulting in time wasted opening the outlet. With IGP funding, A-One Claypot installed an auto-adjusting system inside the table legs to solve the "wobbly table" problem.

With staff freed up to serve customers, productivity and sales improved, and workers got wage increases too.

Another example is F&B operator Nihon Mura which tapped on funding to change its restaurants layout such that the booth seats are located closer to the food conveyor belt. This reduced the number of service trips their staff have to make in a single service shift.

3.       Futurise your business

Instead of fighting over a shrinking pie, SMEs should "chase sunrises" and embrace the future by exploring new technologies such as 3D printing, robotisation, and digitisation of services, according to NTUC chief Lim Swee Say.

With SkillsFuture support for businesses announced in the latest Budget, SMEs can draw experience from mentors and futurise their business strategies and workforce to conquer blue oceans.

The most important question is how far are you willing to go to ensure your business survives?