Often facing capital and liquidity strains, SMEs face their biggest challenges in managing their working capital and accessing funds for growth. So how can SMEs achieve sustainable growth and tap capital markets?
In today’s challenging business environment, the survival and growth of SMEs depends on the adoption of good financial practices. Aimed at building up financial management capabilities amongst SMEs, the collaborative efforts of SPRING Singapore and Singapore Exchange (SGX) initiated the launch of SME Financial Management Growth Seminar yesterday.
Mr. Piyush Gupta, SPRING Singapore’s deputy chairman and chief executive of DBS bank, said in his opening address, “In difficult times when economies are slow, it is possible for companies to squeeze just a little extra from the cash cycle to provide the liquidity they need to go through turbulence. At the same time, a good architecture is extremely important (so) you have the longevity to succeed.”
“Therefore, spending some effort and time thinking about your financial management system is extremely helpful, particularly in these more difficult times,” he added.
A recent study by the Institute of Singapore Chartered Accountants and SAP (3rd ISCA Productivity Scorecard and Benchmarking Survey Report) revealed that Singapore companies that invest in building their financial capabilities recorded 8% to 36% higher revenue per employee.
The half-day seminar, attended by over 100 participants from 15 various industries, was held at the SGX Auditorium. The seminar raised crucial awareness on the significance of building up a strong financial management foundation to serve as a platform for further future development.
It also enabled an exchange of knowledge and sharing of experience between industry experts and business leaders on key financial management strategies that SMEs should focus on to achieve sustainable growth. After all a suitable capital structure not only helps SMEs to stay alive in the competitive market but has an overall positive effect on the national economy.