Local entrepreneurship remains thriving despite economic downturn

According to the Singapore Business Formation Statistics Report 2012 just released by Janus Corporate Solutions, confidence in starting new businesses in Singapore continued to remain strong with a reported 2.5 percent increase of locally owned enterprises in 2012 when compared to 2011.

The report noted that policy makers have introduced a number of initiatives recently to build a strong entrepreneurial ecosystem locally. Some of these noteworthy developments include proposed amendments to the Companies Act, such as making more funding, mentorship, and networking opportunities available for budding entrepreneurs, and new programmes to help children and teenage be more entrepreneurial.

Statistics show that new business formations added up to 56,681 in 2012, registering a small increase from the 55,699 business formations in 2011.

The number of private limited company registrations also saw an increase of six percent during 2012 and made up 55 percent of all businesses registered last year. In terms of business formations by industry, the report pointed out a significant increase of 22 percent in ‘Computer Programming and Consultancy Services’.

The report also identified a healthy increase in the number of foreign company registrations from certain countries, including a 264 percent rise in the number of Chinese companies and a 51 percent rise in the number of Japanese companies. A foreign company can either have a branch office or a subsidiary company in Singapore.

There was also an increase in the number of companies with individual shareholders from France, Australia and Japan by 65 percent, 29 percent and 27 percent respectively.

Jacqueline Low, the Chief Operating Officer of company registration agency, Janus Corporate Solutions, said, “Singapore attracts foreign businesses because it is well positioned within the global economy. The country offers low taxation and superb ease of doing business, which are a big draw for businesses from both developing and established countries. Its free trade access provides opportunities for companies from China and other countries to penetrate more markets as economic growth in their home economies slow down.”

The report also suggests that since there is an increase of the number of head officers and management consultancy companies, there is a larger need for companies providing IT services in Singapore.

Image Credit: Future Gov