Financial assistance schemes for small & medium enterprises : an end-user perspective

• Main Authors: Yeong, Kong, Ng, Tee Huat, Koh, Cheng Kiat
• Other Authors: K Radhakrishnan
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/55587
• Institution: Nanyang Technological University

Small & Medium Enterprises ( SMEs ) in· Singapore have contributed significantly to the economy. It is the government's interest to focus on the SMEs and help them to grow. The provision of non-fiscal financial assistance schemes in the form of grants and loans is a step in that direction. The number of grants and loans approved in proportion to the total number of SME s in Singapore 17. 89% ) is relatively low [ Economic Survey, 1992 l. This research is undertaken to investigate the possible reasons for the low rate of approvals of the schemes. Broadly speaking, the low usage of the schemes may be attributed to low application rate on the part of the SMEs or high rejection rate on the part of the government agencies. There are four hypotheses in our research. The first three hypotheses were thus developed to determine whether SMEs do not apply for the schemes because they are not aware of their availability or because they do not perceive the schemes to be effective. The fourth hypothesis was developed to determine whether there is a high rejection rate of applications for the schemes. Results from our research indicate that the low approval rate as compared to the total number of SMEs in Singapore is not due to SMEs being unaware of the availability of the schemes or perceiving the schemes to be ineffective. It is also not due to a high rejection of application since our research results indicate that there are no unsuccessful applicants in the sample. It may thus be inferred that there are other reasons to explain this phenomenon of low approval rate. Despite these findings, the report also attempts to provide recommendations to further improve the awareness and the effectiveness of the schemes. Hopefully, by improving them, more SMEs will take up the schemes offered by the government to upgrade themselves so as to face the challenges ahead.