FOR small and medium enterprises (SMEs), achieving growth is easier said than done in today's complex economic climate. While Singapore is unlikely to experience a recession in 2023, macroeconomic headwinds continue to create significant challenges and uncertainty.

The Infocomm Media Development Authority (IMDA) of Singapore has long championed digital technologies and sustainability programmes to help SMEs, which make up 99 per cent of all companies in the country, become more resilient and competitive. With the right support, tools, and funding, agile SMEs can take advantage of the shifting landscape to accelerate their business growth.

To bring transformative ideas to life, SMEs which have historically been underserved by traditional financial institutions, are now seeing increasing access to capital from both the public and private sectors. Global small business platform Xero recently launched the Xero Beautiful Business Fund (XBBF) to accelerate the growth of small businesses globally, focusing on core areas of growth including:

XBBF will award the winner of each category S15,000. Winners will be selected on the basis of their future- looking plans to accelerate growth in their chosen area, whether that be adopting sustainable practices, implementing technology, giving back to the community or upskilling their teams. Eligible submissions, for example, could include plans to implement carbon-neutral transport modes or integrate emerging technologies into the company's business processes.

Koren Wines, managing director at Xero Asia, says: "Singapore is Asia's most competitive economy. In fact, it consistently ranks amongst the most competitive economies in the world. Xero has identified these four core areas to help businesses become more innovative and agile, while driving growth in a truly meaningful way. Through the Xero Beautiful Business Fund, we're giving SMEs the funds to make that transformation a reality."

She adds: "When you couple extreme competition with a challenging operating environment with ever rising costs, inflation, labour shortages and evolving customer expectations, access to capital is not only important to succeed, in some cases, it is critical to survive."

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The four Singapore XBBF winners will go on to compete in the Fund's global edition, which will award a further $40,000 to each of the category winners, chosen from the pool of local winners across seven participating countries.

XBBF is open to all Xero-subscribed for-profit and non-profit companies in Singapore with fewer than 50 employees. Local judges for the award include SME leaders and influencers:

SMEs can apply by submitting a 90-second pitch video and brief by October 6, detailing how they intend to deploy the winning funds in their chosen category.

Singapore is widely recognised and applauded as a future-focused nation with ambitious growth and sustainability goals. Consistent with previous years and doubling down on its Smart Nation Framework for Action, the government announced continued measures in the 2023 National Budget to support SME growth amidst rising economic and sustainability pressures. This support includes the Enterprise Innovation Scheme that provides tax allowances for business innovation activities and extended support for energy-efficient equipment adoption. Alongside existing resources like the Productivity Solutions Grant, SMEs can tap various initiatives to digitise their business and adopt more sustainable workflows.

The Singapore Business Federation (SBF) - the bridge between the business community, trade associations, and the government - created the Job Development Programme to support SMEs by stimulating job creation and redesign across industries. In 2021, the SBF launched the Mindset Shift, Analysis of Potential, and Pathway Assigment (MAP) initiative to provide SMEs with systematic and tailored guidance to digitally transform their business models and pivot to new areas of growth, including emerging technologies like generative artificial intelligence, which present exciting possibilities for SMEs.

SMEs should look inwards as they catalyse their transformation with government support, according to SBF's Tan. "There are many initiatives and activities for businesses to tap, but we understand that small businesses need further support to navigate the complexities. However, it is important to note that businesses still need to have a clear plan and commitment to innovate and explore new growth opportunities to succeed in the digital economy."

Over the last decade, technology has served as a key accelerator for SMEs, even facilitating business continuity over Circuit Breaker. Employing digital solutions, businesses have become more efficient, productive, and resilient. As Singapore presses forward as a Smart Nation, technology continues to drive innovation in areas of finance, operations, sustainability, marketing, customer service and content with emerging technologies offering potentially greater wins.

Tan shares that emerging technologies provide significant opportunities for businesses to stay competitive, saying: "Emerging technologies are constantly changing the way businesses operate. By adopting these technologies, small businesses can stay ahead of the competition and improve their efficiency and productivity. This can help them to grow their businesses and create new opportunities."

Another judge, Singapore Corporate Services' Chang, also believes in the pivotal power of technology to enhance operational efficiency and drive innovation, especially for small businesses.

He says: "Integrating emerging technologies not only gives businesses a competitive edge but also empowers them to provide exceptional value to their clients and stakeholders. It's inspiring to witness how small enterprises harness technology to set industry benchmarks."

Leveraging data and insights generated by their clients' technology solutions, his firm, Singapore Corporate Services has helped them expand and scale.

"Through digital transformation, we've shifted clients from intuition-based decisions to data-driven strategies. This not only brought clarity to their profit and loss statement but also empowered them to regain control and focus on strategic planning. For SMEs expanding regionally, there are common challenges around cash flow, revenue recognition, and evaluating new ventures," Chang adds.

As an SME owner, Move Repeat's Pan shares that in the beginning there are many unknowns when first starting a business.

"The pressure to continually innovate in an ever-evolving industry can leave you with a lot of doubt about whether your brand or product is outstanding enough to maintain longevity," she says.

She believes that on this journey, innovation is essential to creating opportunities.

She adds: "Because of the much smaller scale you have starting out, there is always the opportunity to continually introduce new ideas to replace the old, with fewer customer expectations and legacy systems and processes, compared to once you are already established. In growing a business, you instantly get recognised for your efforts, and doors open to many new opportunities with a lot of different things like partnerships and funding."

She credits her dedicated and skilled team for the success to date of Move Repeat's flagship popular brands, Yoga Movement and Strong Pilates. "The team both embraces our company culture and values and understands our vision, committed to building and executing what is necessary to achieve that long-term vision."

She believes that upskilling the team as the business grows and scales is critical.

"Looking forward and innovating is key in sustaining any business. For us, we are continually looking to invest and upskill the key people within the business to be able to drive and take things forward. Trends and consumer behaviour are ever-changing, and the only way to continually succeed is to go along with it."

Fresh capital enables businesses to undertake transformational strategies while managing their resources and maintaining business continuity. Strategies that can help businesses leapfrog ahead and become more competitive and resilient in the face of uncertainty and increasing challenges are critical to success. According to Wines, helping small businesses improve their sustainability, social impact, digital capabilities, and skills to stay competitive is what beautiful business is all about.

Wines says: "Xero's mission is to make lives better for small businesses and their advisors. With the Xero Beautiful Business Fund, we are re-affirming that commitment, putting our money where our mouth is. We want to see our customers grow and thrive by taking advantage of all the opportunities and advancements that are available to them."

Apply for the Xero Beautiful Business Fund today.

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