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Giving them credit: Programme supports young entrepreneurs with easier access to finance, mentorship
Over 140 entrepreneurs gathered at Maybank’s inaugural forum last month to gain insights from industry leaders and network with peers
Panellists at the fireside chat shared insights on how new and young businesses can grow, even amid today’s uncertain market environment.
PHOTO: MAYBANK SINGAPORE
Toh Ee Ming, Content STudio
When Mr Lim Song Kiat, 42, first opened his new eatery last year, he found it difficult securing additional funds to invest in kitchen equipment.
Then he heard about Maybank’s Young Entrepreneur Scheme’s (YES) e-financing solution. Mr Lim completed the online application and was approved for funding of up to $150,000 in less than a week.
Another initial hiccup that his venture, Tong Sheng Bak Kut Teh, at Pandan Gardens, was that it operated on a cash-only model. When the day’s shift ended, he and his 28-man staff would have to count the cash sales and tally them up with invoices. That took about three hours.
The YES programme and additional funds would help solve that problem too. He will use about $18,000 to implement cashless systems and invest in an online accounting platform. That would shave off two hours from the daily process.
“It definitely helps a lot,” said Mr Lim, who is married and has four young children. He plans to use the rest to invest in more technology and open two more outlets within a year.
How small businesses can grow
Mr Lim’s initial difficulties are not unique. Dr John Lee, chief executive of Maybank Singapore, said: “SMEs face three key challenges: How to best manage their business, how to network to get support for their business, and how to obtain a holistic banking relationship.
“The Maybank YES programme was developed in July 2022 to assist SMEs in meeting these challenges, in line with our mission of ‘humanising financial services’ to support SMEs beyond just funding."
Without at least two years of a business track record, said Mr Marc Leong, head of SME banking, Maybank Singapore, it is difficult for new and young entrepreneurs to secure a bank loan for business expansion.
Minister for Culture, Community and Youth, and Second Minister for Law Edwin Tong said the Government can help create a supportive environment, such as a strong intellectual property (IP) system and an ecosystem of incubators and accelerators.
Minister Tong was speaking at Maybank’s inaugural YES forum on April 13 at Star Vista. The forum is part of the bank’s YES programme, which aims to empower young entrepreneurs and small- and medium-sized enterprises (SMEs) in Singapore with easier access to finance, mentorship and networking opportunities.
Over 140 entrepreneurs attended the forum.
Minister Tong noted that Singapore is a small city-state with limited resources. With strong human capital, entrepreneurs can create new businesses, new ideas, jobs and services, thus sparking competition and accelerating the economy further, he said.
“Even after countless failures, it is important for young entrepreneurs to persevere and keep going when it gets tough. It may be tempting to give up, to cash out when there are difficulties, but it takes holding on to that tiny bit of success, to turn that into an even bigger one,” said Minister Tong.
By the numbers
- 99%
Small- and medium-sized enterprises (SMEs) make up 99 per cent of Singapore’s total enterprises, and employ 71 per cent of the workforce, according to the Department of Statistics Singapore
- 47%
Increase in the number of loans disbursed to entrepreneurs by Maybank since July 2022
- Over 400
Entrepreneurs in Singapore who have taken part in Maybank’s Entrepreneur Excellence Programme over the past eight months
Scaling in the face of challenges
Besides access to funding, how else can new businesses grow, especially in today’s uncertain market environment?
Constant innovation is one way new businesses can ensure they remain relevant and stay ahead of competition, said panellists during the fireside chat at Maybank’s YES forum.
Mr Benjamin Chua, founder of smart hygiene company Speco Singapore, recalled how he was concerned about the company’s future prospects during the pandemic. The company specialises in providing disinfection services and antiviral coatings.
How can they continue to grow in a post-pandemic world? To find the answer, he went back to the drawing board with his team in 2021 to look into new areas and opportunities.
Today, the firm is looking to internationalise and scale their business, said Mr Chua.
Another important strategy is to invest in workers through “multi-specialisation”, said fellow panellist Lawrence Kim, Group CEO of local engineering company Ebenezer. Its services include steel fabrication, logistics and leasing, commercial vehicle leasing, and precision engineering.
He shared how he makes it a point to cross-deploy and train Ebenezer staff in different skills, from being able to construct scaffolds and drive lorries to installing solar panels.
Mr Kim said this allows his business to be more adaptable, as he can divert manpower into different areas of his business at any one time.
This way, “you get to see and learn something different every day,” said Mr Kim. “It’s a job where you won’t get bored.”
He also ensures that he helps his staff grow through upskilling, redesigning jobs, and checking in with them regularly. Mr Kim shared that every single manager at Ebenezer started out by being a driver.
“I don’t believe in parachuting new people in, but (rather) in giving my people the chance to grow from the ground up, and to give them a vision of what they can be further down the road.”
Above all, the panellists agreed that it is having the spirit of perseverance and motivation that keeps young businesses and SMEs going.
As young businesses start out, they have to be resourceful to seek opportunities, attend incubators, pitch to angel investors and venture capitalists, said the panellists.
“We have all been on a painful journey in trying to achieve our vision… You have to win the respect from investors and hustle, in order to fulfil your dreams,” added Mr Chua.
Empowering young entrepreneurs
Lack of funding. Tedious, paper-based systems. Limited market reach. These are just some of the common challenges that young entrepreneurs in Singapore face, said Mr Marc Leong, head of SME banking, Maybank Singapore.
“Many entrepreneurs offer innovative products and services but lack talent in fully marketing and articulating their product or service story, or having insufficient staff,” observed Mr Leong.
“Many also do not set their operational foundations right at the onset of their business – areas like accounting, human resources and payroll are paper-based and not institutionalised or systemised.
“Hence, when business, staff, and invoice volumes pick up, the situation can become chaotic.”
Mr Leong added: “Our five pillars of YES aim to provide some real help to young entrepreneurs navigating the treacherous start-up journey.” These are:
1. Banking on-the-go: Young business owners can apply for a digital business current account instantly online, to facilitate “anytime and anywhere” banking.
2. Daily spending: Once the business reaches six months of operations, it is eligible to apply for Maybank Singapore’s Business Credit Card – with limits of up to $20,000 to help with business expenses like office supplies, small asset purchases both locally and internationally.
3. Going digital: Entrepreneurs can take part in the Start Digital programme, under the SMEs Go Digital initiative by the Infocomm Media Development Authority and Enterprise Singapore.
It has three digital capability categories: business efficiency (accounting and payroll), sales generation (digital marketing) and cyber-security. Maybank subsidises up to two digital solutions to support SMEs in going digital.
4. Connecting start-ups: Maybank’s Entrepreneur Excellence Programme, under YES, provides networking opportunities for start-ups to meet private investors, and enrichment opportunities through master classes or short courses to enhance their operating capabilities.
5. Seamless financing: Entrepreneurs can secure business financing of up to $150,000 over a five-year repayment tenure within minutes online, through the bank’s latest SME e-Financing solution.
In partnership with Maybank Singapore
