Why fewer grants can be a good thing for small businesses

SMALL and medium-sized enterprises (SMEs) play a significant role in the Singapore economy. They make up 99 per cent of the country's enterprises, employ two-thirds of the workforce, and contribute about of half of the country's gross domestic product.

But the SME sector is facing a unique set of challenges, which could impact its growth and in turn affect the broader economy.

Chief among these challenges is a significant grant reduction from 20,000 in 2015 to 16,300 in 2016 - but the reduced scope is not necessarily a bad thing. In fact, I would hazard a guess and say that it is exactly what the industry needs.