A study of SMEs in Singapore

Abstract

Purpose

The aim of this paper is to appreciate the difficulties faced by small and medium enterprises (SMEs) in a small open economy such as Singapore where there is very little margin for comfort.

Design/methodology/approach

The approach is analytical and statistical. Comparing key ratios over time to reinforce the findings is done.

Findings

SMEs in Singapore are price‐takers in the product markets and they are also price‐takers in the input markets. When there is substantial increase in costs, SMEs will be in trouble as they cannot pass the increased costs to the buyers of their products and services.

Practical implications

The implication is that only the government can help SMEs. With more information, the government can be convinced that SMEs can play a big role in the economy.

Originality/value

The paper shows that government and the SMEs' association can find ways to help SMEs.

Citation

Chew, R. and Chew, S. (2008), "A study of SMEs in Singapore", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 2 No. 4, pp. 332-347. https://doi.org/10.1108/17506200810913908