Accepted a phone interview last night regarding the benefits and current situation of SME schemes. Speaking in the capacity as a Practicing Management Consultant with SBACC (Singapore Business Advisors & Consultants Council - sbacc.org.sg/component/sobipro/?task=search.results&sid=54&ssid=134026553781.19&Itemid=156) , I raised up a few pointers during a phone interview on productivity initiatives and government schemes: + Too many grant consultants working together with SME to earn money from these schemes without the intention to increase productivity. + Some companies even create award schemes to brand their companies by buying awards using PIC scheme which backfire the reputation of real consultants and intent of these schemes . Some SME with help of consultant are more focus on earning these grants than the intent of being productive. So the government to investigate and clamping it is a good move. + SME are small and medium enterprises which means to say a lot of the grants and subsidy are based on reimbursement model where companies need to fork out a sum of money to invest in the project and/increase wages of employees. Many SME struggled to start any productive because of cash flow issue. + While the government provides a check and balance on how grants are being used and disburse, the process of claims is a tedious process and it can take months. So much grants only can target SME which very good cash flow. + Grants and financial schemes / incentive are short term and temporary. Companies must plan ahead to develop a sustainable business model, forecasting growth methods for next 3-5-10 years.
Posted on: Wed, 05 Nov 2014 18:34:07 +0000
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