Setting up a new business is fraught with challenges, but it is precisely these challenges that entrepreneurs look forward to tackling and provide part of the thrill associated with entrepreneurship. However, sometimes crucial mistakes can end up proving to be more than a challenge; they can cripple a business even before it has a chance to dig in its roots and expand.
Setting up your business in a location that is not conducive to commercial growth is perhaps the biggest error in judgement anyone can make, and it does have massive long-term repercussions. On the other hand, there are destinations that make it easy for new businesses to be established and thrive. Singapore is perhaps one of the finest locations for starting a new business, and for good reason.
Location and Transportation
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One of the main factors that work in Singapore’s favour is its location. It is located in the heart of Southeast Asia, smack in the middle of two of the world’s fastest growing economies, India and China. Singapore is also close to other potentially profitable markets, including Malaysia, Indonesia, and Thailand. As a result, many companies choose to establish their Asian headquarters in Singapore.
It also helps that Singapore is a major transportation hub and is extremely well-served by airplanes flying in from and to every corner of the globe. The excellent transportation facilities mean that Singapore was always a top destination for conferences and international meetings. However, with the rapid rise of Asian markets in the new millennium, Singapore has become a prime destination to establish a business and act as a hub to expand into other Asian countries.
Business-Friendly Culture and Economy
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The city-state of Singapore has always boasted an environment that fosters commercial development and has proven to be a place where the entrepreneurial spirit can flourish. There are a number of reasons why Singapore is so business-friendly, but the biggest factor will have to be their favourable tax rates. Compared to other developed economies, Singapore has lower personal and corporate taxes.
In addition, the tax structure is tiered in such a way that it does not hinder growth or impose a financial penalty of sorts for taking your business to the next level. It is not surprising then that Singapore is highest ranked in the Index of Economic Freedom and scores highly for its investment and trade policies. Even with regards to political stability, economic development always takes extreme importance and guides government policy.
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In the movie Sherlock Holmes, the titular character portrayed by Robert Downey Jr. barks at policemen at the scene of the crime to get busy collecting evidence. “Data, data, data. I cannot make bricks without clay.” The same rule applies to staring a business as well. In order to build a business that can survive in the short-term and grow in the long run, it is essential to have a solid base.
Infrastructure plays a very important role and it is often underestimated just how severely poor infrastructure can hamper a company. A world-class infrastructure guarantees that Singapore ends up as the most preferred destination for setting up a business hub anywhere in Asia.
Qualified and Skilled Workforce
Setting up any business requires a lot of hard work and watching the effort go down the drain can be heart wrenching, especially if the reason is the local workforce. Many countries have built up their reputation as outsourcing destinations where labour is cheap, albeit generally unskilled.
That is far from the case in Singapore. The city-state has an excellent education system and centres of learning that play host to the finest minds from all over Asia. As a result, the local workforce is well-qualified and skilled. Singapore’s pragmatic immigration policy also plays a major role in helping boost the number of qualified individuals available. As a result, hiring qualified employees in Singapore is one of the easiest things to accomplish when setting up a business – that is, if you’re offering the right price.
Singapore is always looking forward to welcoming new investments which can contribute to the overall national economic growth. As a result, everything is setup in such a way that establishing a business in Singapore is a breeze.
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