Laws That SMEs Should Know” during the event.
With one of the pillars of CORE 2016 being SME Financing and Support, Crowdfunders.Asia sat down with Mr William da Silva after his talk and talked to him about alternative financing solutions for SMEs as well, how the sector factors in with the economic movement in Singapore and what his thoughts and tips are for people managing their own businesses.
The SME scene in the country
Small and medium-sized enterprises in the country make up approximately about 60% of the overall number of businesses in Singapore according to Mr William da Silva. That is by no means a small a feat and shows how much foothold the industry has with the economic advancement in the country. This also means that SMEs account to a good percentage of the workforce and GDP in Singapore.
Crowdfunding for SMEs
Mr William da Silva mentioned that Crowdfunding is an “excellent idea” when positioned as an alternative source of funds for small and medium-sized enterprises apart from traditional lenders. As it stands, the initial capital needed to start up a business largely remains to be a very challenging stumbling block for those that are just starting out.
He also mentioned who the social funding platform democratises the process and lends a fresh perspective in financial lending. From what people have been used to where a few bank officers would decide the approval of a loan, crowdfunding directly puts that decision in the hands of hundreds of people who will put in their money into the project. Mr William da Silva also believes that crowdfunding is a very sound and workable platform moving forward. It is an actual and a real financing alternative that SMEs can take advantage of for a very long time.
Legal tips for SMEs
Mr William da Silva shared during the interview with Crowdfunders.Asia on how they need to focus on backend processes while managing the business. There is no doubt that the bottomline and closing deals and even marketing should form a significant part of the business but this should not lead to owners overlooking some backend processes.
This can be contracts within and outside the business which help to define the relationship and even the legal responsibilities with various stakeholders. It is also great to have a good handle on the structure and foundation of the business to minimize the misunderstanding and focus on a harmonious relationship with each other. Mr William da Silva also mentioned about thinking and planning long term because this can lead to continuity, security,and maximises growth and profit for the SMEs.
CoAssets will be holding Expo for Property, Investing & Crowdfunding or EPIC series on 8 July 2016. If you want to know more about the exciting world of crowdfunding and how it is changing the financial landscape for various industries, you can visit www.coassets.com/epic.
This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]