Covid-19 Did Not Hamper the Entrepreneurial Spirit
Despite the rough patch faced by many businesses during the Covid-19 pandemic, Singapore start-ups still managed to bring in $5.5 billion in funding in 2020.
Although this sum is lower than what has been garnered in recent years, the Ministry of Trade and Industry highlighted that 2020’s figure only shows just how resilient the Singapore economy is. Not only does this gives Singapore confidence, but it also gives investors confidence too. It only shows investors and the rest of the world that this is still the best place to start a Singapore company.
A Strong Ecosystem
One of Singapore’s strengths is undoubtedly its robust and resilient ecosystem. With strong government leadership and considerable investment activity, start-ups could get that $5.5 billion in funding. It also helped that the government is very responsive when it comes to market changes. Singapore is also home to a strong university network, all of which have contributed to its strength against the Covid-19 pandemic.
As far as private equity investment and venture capitalism go, Singapore is Southeast Asia’s leader on that front. The country accounts for more than half of the venture capital’s total aggregate value in the ASEAN region alone. This has been going on since 2014.
Other ecosystem enablers include intermediary organizations that support the local start-ups, accelerators, and incubators. In Singapore alone, there are more than 3,600 tech-related start-ups.
Government support has no doubt had a huge role to play in creating a conducive business environment for start-ups. However, the government needs to be cautious so as not to create a relationship where businesses become too dependent on their support.
The Challenges It Faces
Singapore has a lot of strengths on its side that have contributed to the $5.5 billion in funding. However, it still does face some challenges to its dynamic ecosystem. For example, one setback to the university system is the small size of the island.
There is also a lot of competition for start-ups from other multinational corporations. There is also the issue of funding gaps that still need to be worked on. The stiff competition from other regional businesses could make it challenging for start-ups to expand abroad if they want to.
The good news is, Singapore’s government is already taking steps to address these issues.
Do You Want to Start a Business in Singapore?
We are here to help. 3E Accounting has been a strong supporter of local and international entrepreneurs. Our aim is to help you launch the business you’ve always been dreaming of. Singapore is where business dreams come alive, especially when you have a strong team of people working with you to help.
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