In general, it’s good to accept the fact that lack of finance is often the most common stumbling issue for start- ups in Singapore. Basically, in this regard, the role of the government in Singapore and the other associated agencies cannot in anyway be overemphasized in contributing to this nation’s success at a start- up friendly country.
On the top of the government’s agenda, enterprise development is usually on the top. It has successfully crafted a supportive as well as a pro- business environment conducive to the different entrepreneurs who want to start any kind of business in Singapore. This write up will focus on discussing about government funding assistance schemes in Singapore.
Government Funding and Assistance Schemes in Singapore
This nation- based start- ups can benefit from the following:
1. Optimal business environment
An optimal business environment in Singapore normally ensures that the start- ups expenditures are minimized while the profits are maximized. This is important since an investor can be in a position to earn more while only incurring a small amount of cash as expenditure.
2. Readily Available Work Force
There is a readily available workforce in Singapore. Hence, each time you opt to increase the level of output that your firm is producing, getting the required workforce will not be a hassle since it’s always readily available. The workforce in Singapore is classified as either skilled, semi- skilled or unskilled. Therefore, depending on the kind of workforce you’ll require, you’ll not miss finding the one that fits you best.
3. Strong Legal Environment
The legal environment in this country ensures that investors are provided with a conducive as well as secured environment to work in. hence, if you opt to invest in this country, be assured that the legal force in this country will protect your investment in the best possible manner.
Equity Financing Schemes in Singapore
Equity financing scheme simply refers to the kind of capital which is normally lent by investors to business in exchange for a share of ownership in the firm. Generally, this form of financing is essential for start- ups which are in need of additional capital, most especially in their early stage of development. The commonly known Singapore’s government known baked equity financing schemes are the following:
1. Early- Stage Venture Funding Scheme i.e. EVFS
EVFS which is often administered by NRF i.e. National Research Foundation is a co- funding scheme whereby the selected venture capital companies who at least raise S$10 million dollars from the third party investors will receive dollar- for- dollar matching from NRF up to a maximum of S$ 10 million so as to invest in the early stage technology start- ups.
2. Business Angels Fund Scheme
This scheme is an equity investment scheme whereby SPRING seeds Capital (subsidiary of the Singapore’s government agency scheme) co- invests in the growth oriented based start- ups along with the –pre- approved business angels. This basically matches the dollar- for – dollar up to a maximum of approximately S $1.5 million.
Last but not the least; the government of Singapore has spent considerable cash amounts, effort as well as time in devising a supportive eco- system for start- ups in this country.