Imperatives for SMEs in an Uncertain World

Written by Celestyn Karuppiah

Originally published on ASME Newsroom

Written by Celestyn Karuppiah

Originally published on ASME Newsroom

On 14th October, ASME President, Ang Yuit was invited as a distinguished panellist and speaker at the Singapore Economic Forum 2024. Themed “Opportunities Amidst Challenges,” the forum provided invaluable insights into the challenges that local SMEs face. Jointly organised by the Economic Society of Singapore and SMU School of Economics, the forum serves as a vital platform for discussion about the future of Singapore’s economy.

“Opportunities Amidst Challenges” could not be a more apt theme given today’s rapidly changing global landscape. With increased geopolitical tensions, rapidly advancing technology and changing consumer expectations, there is an urgent need for businesses to adapt and seize the opportunities available amidst uncertainty. The discussions underscored the significance of today’s economic dynamism, collaboration and strategic priorities like digital transformation and sustainability for Singapore’s continued economic success.

Imperatives for SMEs in an Uncertain World

During the presentations and engaging panel discussion, industry leaders shared invaluable strategies on how SMEs can thrive. They emphasized the importance of digital transformation, innovation, and human capital management for SMEs. Here are some key challenges and corresponding strategies to address them:?

Challenges: Hurdles SMEs Face

1. Supply Chain Squeeze:?

The world has rebooted since COVID-19, but disruptions to the global supply chains remain. The ‘new’ world, rife with geopolitical instability, has caused significant delays, increased costs, and limited access to international markets.?

2. Tech Adoption Struggles:?

There is a new inequality to consider - the digital divide. Technology advancements allow companies to race ahead, leaving behind those who have yet to get on the bandwagon. However, implementing new technologies like AI comes at a high investment cost that many SMEs are unable to afford.

3. Talent Tug-of-War:

Competing with larger companies for top talent is a constant struggle. Factoring in rapid technological changes and the evolving business landscape makes for an even more uphill battle.

4. Sustainability Implementation:?

With a growing focus on Environmental, Social, and Governance (ESG), it is imperative for SMEs to stay compliant to remain competitive. However, faced with resource constraints there is a struggle to meet regulations.?

?Strategies: Winning Moves for SMEs

1. Shift Smart: Nearshoring and Regionalisation

Consider relocating segments of your operations to neighbouring countries to reduce cost and improve efficiency. When expanding overseas - even if it is outsourcing - fostering collaborative partnerships will help you in the long-term. What was once a simple overseas supplier may one day be your strategic partner to help expand your market.?

2. Tech Time: Embrace Digital Transformation

Digital tools, including AI technologies, have evolved significantly.? Many cater to small businesses and come with low monthly subscription costs. Explore cost-saving and efficient digital tools to aid in business operations from managing finances to project management. These tools will help free your time to focus on the true innovations unique to your business. Complement technology adoption with training programs to get your team up to speed, and don’t forget to tap into available grants such as Productivity Solutions Grant!?

3. People Power: Prioritize Human Capital Management

Attract and retain talent by focusing on work-life balance, productivity, and forward-thinking policies. Your people are your greatest asset and by creating a positive work environment, they will be motivated to create innovative solutions and improve operations. Check out our article “Outpacing the Giants: Insights from IHRP’s People Behind People Forum” for more HR related tips!

4. Eco Hero: Address ESG?

ESG goes beyond ethical implications, a strong ESG brand will help your business, as customers and regulators lean towards ESG friendly companies. Collectively, we can all do our part to make a global impact. With a focus on the “S” for Social and “G” for Governance aspects, we can collectively enhance business practices and better align with sustainability trends.?

We’d love to hear your thoughts! Share your insights and experiences on how SMEs can thrive in an uncertain world. Drop a comment below and join the conversation!

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