SMEs optimistic for recovery

A majority of SMEs think 2021 will be better.

Aproximately 75% of Singaporean SMEs think businesses will recover by April, according to the latest Mastercard Impact Study.

Among the respondents, nearly 25% have reported that their operations have already recovered from last year's blows.

"Though the pandemic has presented Singaporean businesses with some truly unprecedented challenges, Mastercard’s latest reportshows that many SMEs here have weathered the storm—in large part due to their own willingness to innovate, evolve, and adopt new ways of doing business that meet the needs of consumers. The commercial landscape is now more digital, more fast paced, and more fluid," Deborah Heng, country manager for Mastercard Singapore, said in a statement.

Nearly all of the respondents said they have enough resources for 2021, but in preparation for further volatility, 23% of small business owners have started making investments, whilst 56% expanded their online presence to reach out to more customers.

Key hurdles faced by SMEs are labor, sales, and financing. Payroll and rent were the most cited working capital issues.

With the pandemic driving a shift towards digitisation, 34% of the respondents said they would start taking non-cash payments.

The study was conducted during the tailend of 2020 as part of Mastercard's survey on business sentiment during COVID-19.