Startup Singapore : What are the factors that enhance startups in Singapore?
Singapore has become the world’s number one center for the entrepreneurial talent, especially from Asia. So, what could lead to make Singapore such a good place to increase the number of entrepreneurial talent?
In a research that are conducted by NUS Business School and Hong Kong Baptist University, they examined whether one reason could be the workplace flexibility Singapore offers to entrepreneurs, focusing in particular on the “Home Office Scheme” (HOS), which was launched by the Singapore government in late 2001 to allow potential entrepreneurs to set up and operate certain kinds of business from their own homes as long as they satisfy all the given criteria and guidelines which is subjected to URA’s approval.
1. Starting at home
The findings that are obtained from the research yield that there is a substantial positive impact on entrepreneurship and it’s also found that new business creation has grown by 23 % with this new reform. Furthermore, the increase in new firm creation has mostly been concentrated among small-scale business. So, we may ask that at what point HOS is helping to emerge new businesses?
HOS allows entrepreneurs to get into business with less cost since by starting their business at home, they are getting rid of paying rent for the offices and the transportation expenditures, which means if individuals have some financial constraints, HOS allows them to set up a business. Moreover, according to the research that is conducted by NUS Business School and Hong Kong Baptist University, it is observed that the effect of the Home Office Scheme is relatively higher for the low-income individuals for whom the reach to capital is most likely to be the most important barrier to the entrepreneurship.
2. Flexibility in business means a lot than money
The positive effect of the Home Office Scheme on business creation may also bring non-monetary benefits as well. For instance, when entrepreneurs have the option of flexibility in their workplace motivate them to start their own business and allowing them to manage household chores while also attending to their business.
In addition to that, the research that is conducted by by NUS Business School and Hong Kong Baptist University does not give any direct result of having home office scheme and flexibility, HOS might help to decrease the visibility of possible business failure, and allows individuals to decrease the risk of experiencing consequence shame and humiliation, which might motivate entrepreneurs more. This factor is important especially in East Asia where cultural stigma around failure is often seen as an obstacle to innovation and entrepreneurship. So, the entrepreneurs can focus on their ideas more by concerning about the negative situations less such as failure.
Moreover, the policy makers think that “Home Office Scheme” has raised the quality and the number of entrepreneurship since it encourages people to start businesses, which invigorates the economy and creates some job opportunities for other people as well. In contrast to these policy makers, there are some counter ideas which supports that typical startup businesses tend not to be innovative and creative so they will create less jobs and less wealth for the country.
3. High chances of survival in the market
When the businesses that are set up under the “Home Office Scheme” are observed, the research yields that they are starting relatively small scale but they survive longer when we compare with the businesses that are set up at the same time and the region but not under HOS. In addition to that, in the long run, the businesses that are set under HOS faces with higher productivity and lower risk.
Also, the study has revealed that the scheme encourages entrepreneurs to become serial entrepreneurs, going on to open a larger business with a similar survival rate for their second firm. This consequence shows that HOS is successful in creating a healthy and enduring entrepreneurial ecosystem.
Hence, considering the research, we can understand that policies that are adopted by the governments and encouraging flexibility in the workplaces play an important role for promoting entrepreneurship. These results be a good message to the governments and policymakers that are aiming to promote entrepreneurship.