SMEs must invest in human capital for growth

"SUCCESS in business is all about people, people, people," Richard Branson once said. Indeed, talent is the heartbeat of any organisation. For small and medium-sized enterprises (SMEs), attracting, retaining and bringing out the best in talent are essential to business growth.

Creating 70 per cent of jobs in Singapore and contributing more than 50 per cent of economic output, SMEs are the backbone of Singapore's economy. But, hit by a manpower crunch and rising costs, SMEs are being forced to restructure in order to survive.

Unsurprisingly, the government is giving this sector widespread attention. Numerous initiatives have been implemented to help SMEs to internationalise and deepen their capabilities. These include the enhanced funding support for the Capability Development Grant (CDG), which helps to defray the qualifying costs of upgrading projects in various areas. One of these areas is human capital development.