entrepreneurship in singapore -...

Multi-Year Expert Meeting on

Enterprise Development Policies

and Capacity-building in Science, Technology and Innovation

(Third session)

Geneva, 19-21 January 2011

Entrepreneurship in Singapore

by

Sim Choon Siong

Director, Entrepreneurship Development

SPRING Singapore

This view expressed are those of the author and do not necessarily reflect the views of UNCTAD.

Entrepreneurship in Singapore

Sim Choon SiongDirector, Entrepreneurship Development, SPRING SingaporeSecretariat to the Action Community for Entrepreneurship20 January 2011

1965 – 1978: Export Oriented Industrialisation

1986 – 1997:Capability Building andEconomic Diversification

1998 onwards:Transforming to

Knowledge-Based Economy

1979 – 1985: Industrial Restructuring

Journey of Entrepreneurship

Phases of Economic Development

2

Entrepreneurship as a Strategy

Crises 1997 – 2003

Entrepreneurship to be driver of Singapore’s economy

Appointed Minister in charge of Entrepreneurship

The Action Community for Entrepreneurship (ACE) – a public-private sector collaboration to enhance entrepreneurship landscape

SPRING Singapore is the government agency that promotes enterprise development

EntrepreneurialSingapore

3

Overview of ACE

4

Building a Pro-enterprise EnvironmentFacilitate Review of Rules and RegulationsPro-Enterprise Ranking of Government AgenciesFacilitate SME Financing

Facilitate Networking & LearningBlueSky Exchange / Festival

Building an Entrepreneurial CultureACE Speakers’ Circuit Enterprise DayGlobal Entrepreneurship Week

5

ACE is a private and public sector movement aimed at creating a

more entrepreneurial Singapore.

Action Community for Entrepreneurship

ChairmanMinister Lee Yi Shyan

Deputy ChairmanInderjit Singh, Entrepreneur

Action Crucibles

CultureMrs Kim Faulkner,

Mr Prakash Somosundram,Entrepreneurs

RulesMr Patrick Daniel,

Executive

InternationalisationMr Richard Eu,Entrepreneur

Supported by Secretariat(SPRING Singapore)

ResearchDr Antony Ng,Entrepreneur

ACE Structure

6

• Ranked government agencies for their pro-enterprise orientation

• Changed 960 rules from 1750 public suggestions

• Worked with partners to roll out Deal Flow Connection, SME Loan Securitization and “Over the Counter” Capital (private capital exchange)

• Reached out to over 32,000 entrepreneurs and aspiring entrepreneurs through 7 annual BlueSky Festivals, 45 BlueSky Exchanges and 3 GEW.

• Reached out to 36,000 students through 165 talks to schools

• Catalysed S$25m Entrepreneurship Talent Development Fund for youth

• Mentored 6 companies for internationalisation

Some of ACE’s Contributions

7

Overview of SPRING

8

SPRING VisionGlobal Singapore Enterprises

SPRING MissionTo help Singapore enterprises grow and

To build trust in Singapore products and services

Enterprise Development

Quality & Standards

9

SPRING’s Mission and Vision

• Global Singapore Enterprises• Pool of Home-Grown Champions in

Key Sectors

Groom Growth-Oriented Enterprises

Seed and Nurture

Innovative Start-Ups

DevelopCompetitive

Clusters

Strengthen Environment Conducive for Enterprise DevelopmentMMoneyoney MMarketsarkets

MManagementanagement KKnownow--HowHow

10

Enterprise Development Strategies

Key Initiatives

Access to Financing

Supporting Entrepreneurship

Access to Info & Capability Upgrading

Pro-Enterprise Rules and Regulations

ACE

Entrepass

YES! Schools

Govt Loans, LEFS, LIS, MicroLoan

OTC Network of 5 EDCs

EnterpriseOne Portals / Hotline

Innovation Voucher Scheme (IVS)

Pro-Enterprise Panel (PEP)

Ease of Doing Business (EoDB)

11

Strengthen Environment for Enterprise Development

www.business.gov.sg

Business & Financial advisory & consultancy services

Enterprise Development Centres (EDCs)

Online business info and government e-services

EBIS@SBF

Market info resources & research services

Business Support Services: One Network for Enterprises

12

Strengthen Environment for Enterprise Development

Key Initiatives

Build Manpower

Capabilities

Build Manpower

Capabilities

Partnership with Trade Associations & Chambers (TACs) through LEAD Programme

Drive Capability

Upgrading & Innovation

Drive Capability

Upgrading & Innovation

Enhance Productivity and Service

Enhance Productivity and Service

Grow New Markets

Grow New Markets

13

Develop Competitive Clusters

Key Initiatives

YES! Schools

Business Plan Competitions

YES! Start-Ups

Technology Enterprise Commercialisation Scheme (TECS)

SPRING SEEDS

Business AngelsVenture Capitalists

Incubator Development Programme

IdeaGenerator

Proof of Concept/Commercialisation

Go to Market

IHLs

RIs

Individuals

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Seed and Nurture Innovative Startups

Key Initiatives

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Market Facilitate Access to Global Markets,

Link SMEs to MNCs & Foreign SMEs

ManagementAdvanced Management Programme;

Management Development & Executive Development Scholarships; Business

Advisory Programme; Executive Training Programme & HR Capability Programme

Know-HowTechnology Innovation; Branding;

IP Management; Business Excellence; Design

MoneyPrivate Sector (OTC Capital, Catalist, etc)

Supported by TACs

Grooming Growth-Oriented Enterprises

Some Achievements for Singapore

#1 (2007-2011)

in pro-enterprise environmentWorld Bank Doing Business Report

#1 (2008)

in government policies & corporate performance most

encouraging to innovationBCG Global Innovation Index / NAM /

MI International Innovation Index

#3 (2010-2011)

in world competitiveness rankingWorld Economic ForumGlobal Competitiveness Report

#4 (2009)

in access to capitalUS Milken Institute Capital Access Index

16

Entrepreneurship Education

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Learning by Doing

Encourage Experimentation,

Innovation & Enterprise Learning

CompetitionExperience

Startup Immersion Experience

Awards & Recognition

A Vibrant Youth Entrepreneurship Scene

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Innovation and Enterprise LearningTeach Less Learn MoreACE Speakers’ CircuitJunior Achievement (JA) / FedEx International Trade ChallengeSpirit of Enterprise$22m University Innovation FundDiplomas, Degree (Minor) in EntrepreneurshipMSc Technopreneurship & Innovation Programme

A Vibrant Youth Entrepreneurship Scene

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Encourage ExperimentationDesign CompetitionsTan Kah Kee Young Inventor AwardYESCOMNational Pushcart ChallengeLee Kuan Yew Global Business Plan CompetitionStart-up@Singapore Business Plan Competition

A Vibrant Youth Entrepreneurship Scene

20

Startup Immersion ExperienceInternships with Singapore-based startups (e.g. Innovative Local Enterprise Achievement Development or iLEAD)

Internship with overseas startups via NTU Technopreneurship and Innovation Programme and NUS Overseas College Programme (NOC), e.g. in Silicon Valley, Bio Valley, Shanghai, Stockholm, Bangalore, Beijing

A Vibrant Youth Entrepreneurship Scene

21

Award & Recognition Shell LiveWIRESpirit of Enterprise (SOE) AwardSingapore Youth Award for Entrepreneurship

A Vibrant Youth Entrepreneurship Scene

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support schools entrepreneurial learning activities

support idea/project development

support student ventures

Initiation to Entrepreneurship

Developmentof ideas

Commercialisationof ideas

$25M Entrepreneurship Talent Development Fund (ETDF) to seed youth business ventures, and encourage entrepreneurship through “learning by doing”

Strategy for Youth Entrepreneurship

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Grant for schools to promote entrepreneurship among students and nurture budding young entrepreneurs through “learning by doing”

EvaluationCriteria

Hands-on Learning

Reach

Entrepreneurship & Innovation

Holistic

Entrepreneur Mentor

2008: Launch2009: 31 schools, 6,000 students2010: 41 schools, 8,000 students

YES! Schools

24

Zhonghua Secondary School

- Combines D&T with Entrepreneurship for 14 year-olds.

- Students organised a Piece-it-Up: eco design @ Zhonghua Exhibition with advice and support from IKEA Singapore, PICO Arts Pte Ltd and Design Rete to showcase their products created.

Raffles Institution

- Nine-month structured programme to instil entrepreneurship.- 2 14-year old students designed a circular fridge to make retrieving items easier. Combines Lazy Susan and sliding door.- Approached Bosch to validate design.

YES! Schools

25

Learn Entrepreneurship

DevelopIdeas

CommercialiseIdeas

Probably the world’s first business plan competition where youth participants start off with an idea and end with an innovative enterprise

26

27

In Vitro

GIVE.sg

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(i) The Applicant• Singaporean/PR, below 26• First time entrepreneur• Key driver in the company.

Eligibility

Grant for youths to start their first innovative venture and learn entrepreneurship through “learning by doing”

(ii) The Startup• A new company• Business activities based in Singapore• Engage in value-add/high growth activities

EvaluationCriteria

Innovativeness of business idea

Potential market

Management team

Commercial feasibility

2008: Launch2009: 41 startups, 65 youths2010: 31 startups, 38 youths

First “scholarship” for young entrepreneurs to start their first innovative business.

YES! Startups

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FlickEvents is a one-stop e-platform for easy event management and effective community engagement, providing a full suite of event management tools.

Zimplistic designs home appliances and is currently developing a chapatti-making appliance, which it intends to patent and license to major consumer electronics companies.

Emeeto is a rich media service provider developed by Eme Tech, to facilitate online collaboration including communication, conference, coordination, knowledge-sharing and entertainment.

YES! Startups

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YES! Startups

31

YES! Startups

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sim_choon_siong@spring.gov.sgwww.spring.gov.sg

www.ace.sg

Year 2005 2006 2007 2008 2009

Company 19,501 21,491 25,904 24,988 24,341

Business 23,494 24,090 23,861 24,570 26,671

Total 42,995 45,581 49,765 49,558 51,012

Formation of New Companies and Businesses

34

99% of all enterprises in Singapore are SMEs

… they employ 6 in 10 workers … and contribute about half oftotal value-add

168,000

Large Enterprises(1%)

SMEs(99%)

Number of Enterprises

Large Enterprises(49%)

Last updated: 10 March 2010 Source : DOS & SPRING

Large Enterprises(43%)

SMEs(57%)

Number of Workers

1.6 million

SMEs(51%)

Value-Add** Refers to value added at 2000 market prices

$113 billion

35

SMEs in the Singapore economy

LargeCompanies

(~1,400)

$100m

Micro-Enterprises(~110,000)

Small & Medium Enterprises(~30,000)

$1m

Notes: The MSM Enterprises figures are SPRING’s estimates based on DOS 2007 figure Includes both local and foreign enterprises

36

Enterprise Landscape in Singapore

Learning Outcomes

A set of key entrepreneurship attributes, with corresponding skill sets and outcomes.

Provides a guide to progressively expose students to entrepreneurship, in accordance with their age and aptitude

Three age groups – 9 to 12 yrs old, 13 – 16 yrs old & 17 yrs old and above

Life Skills Attributes of Entrepreneurs

Entrepreneurship Mindset

Understanding Value, Recognising Opportunity, Envisioning & Innovation

Character Development

Ethics & Passion / Perseverance

Relationship Management

Leadership / Teamwork, Customer Perspectives / Marketing & Communications

Business Skills & Technical

Financial Acumen, Competitive Advantage & Risk Taking

Learning Outcomes

9 – 12 yrs old 13 -16 yrs old 17 yrs old & above

Understanding Value

Understand entrepreneurship as value creation

Understand entrepreneurship as value creation / Understand different business models

Understand entrepreneurship as value creation / Ability to formulate an appropriate business model

Competitive Advantage

Understand concept of competition / Ability to identify substitutes

Understand concept of competitive advantage / Ability to identify substitutes & build on strength

Understand barriers to entry and business differentiation