If you are an entrepreneur based in Singapore, one question that is often asked is where does someone look for funding if they are a small business?
Most individuals first thought is that a bank is a good option to raise seed capital for your business. However, most entrepreneurs will find that they will only have access to personal loans from bank, since business loans are only possible if the company has been in business for some time. Since most young businesses will not necessarily meet these lending criteria but are still looking to expand. This means that Singapore entrepreneurs need other options to raise the business capital they need.
Business Grants in Singapore
Government grants are another possibility. However, the process of obtaining funding this way is notoriously difficult. The Singaporean government has claimed that this is a sort to test to see how much they need the funding.
For some businesses, the good news is that there are some business grants available for eligible companies. However, some of these grants are only available to those businesses that operate in or support specific sectors such as tourism and aviation. For example, the following two grants, the Aviation Development Fund (ADF) as the name suggests is for Singapore-based businesses in the aviation sector. Alternatively, the Business Improvement Fund (BIF) grant is for businesses that either work in the tourism sector or supports the tourism industry in some way.
Further grants from the Singapore government are usually for established businesses looking to expand their current operations. The Market Readiness Assistance (MRA) Grant - has been designed to help businesses in Singapore expand overseas whereas the Enterprise Development Grant (EDG) –is for established businesses in Singapore that are looking to develop their business further. Typically, this grant can be used for expenses such as investing in third-party consultancy fees, staff costs, software, and office equipment. Finally, the Productivity Solutions Grant (PSG) – can be used for businesses looking to improve productivity by adopting a more efficient IT strategy.
Business Angel Investors in Singapore
While traditional loans and grants might not be an option for a lot of new entrepreneurs in Singapore, there are some other ways a new business can attract investors and funding.
More common options for business funding are Angel Investors and Venture Capitalists, both of which will invest significantly higher amounts in your start-up or small business. However, both Angel Investors and Venture Capitalists will want some control of your business and guarantees of a good return on investment in exchange for their money. But at the same time, they offer the experience which could be the extra factor which allows your business to succeed in the first place.
Remember, the investor is looking to make money just as you are, and so it will be a venture that both sides enter together as a partnership. This means that anyone who invests in a small business will do everything possible to ensure that they are making a sound investment. They will check your business plans thoroughly, and make sure that they themselves believe in your business idea and future plans.
Finding funding for your small business or start-up can take a long time, but the Angel Investment Network can help you make vital contacts with experienced angel investors who are looking to make an investment.