Topic: How can Singapore SMEs chart new growth paths?

Ian Macdonald
President
Hong Leong Finance

Against the backdrop of intense competition and global economic uncertainties, SMEs have to focus on their core competencies and be nimble in addressing market opportunities.

SMEs must have a clear business vision, as well as a sound financial platform.

They can then leverage on their passion and innovation to uncover new avenues for growth.

Steven Phan
Country managing partner
Ernst & Young

SMEs must have a clear focus and a good understanding of the market to adapt and make necessary changes to their business models, especially in today's volatile climate.

They should be alert to business opportunities, including strategic partnerships to enhance their competitiveness and capabilities in delivering greater value to their customers.

The ability to attract, develop and retain professional talent will continue to be critical.

Png Cheong Boon
Acting chief executive
Spring Singapore

During such challenging times there are still growth opportunities, be they in new markets or new growth sectors.

SMEs should continue to innovate and develop new capabilities in their products or services to tap these new opportunities and strengthen their competitive advantage.

Spring is committed to helping these innovative growth-oriented companies charge ahead.

Daniel Ingitaraj
Director of development and platform evangelism
Microsoft Singapore

Focus on identifying competitive advantage versus industry average.

Innovate in areas that provide competitive advantage to exploit and create sustainable growth.

Exploiting competitive advantage allows an SME to create sustainable IP, manage it, protect it - and hopefully export it.

De-prioritising on industry average areas required 'just' to run the business will also be key.

Elim Chew
Founder and president
77th Street

SMEs need to go into different markets to seek different opportunities and networks.

They need to partner appropriate parties to understand market needs and to fill those gaps.

Kenny 'the fish' Yap
Executive chairman
Qian Hu Corporation

Charting new growth paths is easier said than done.

That is because charting new growth paths involves lots of uncertainties and people either don't like that or they never get used to facing uncertainty.

But to retain the status quo in this ever-changing business environment means slow suicide. The first rule of charting new paths of growth is to shed the proverbial 'herd mentality'.

When many fishes go after food at the mid-channel or surface of the water, the high-fin loach goes to the bottom where there are fewer fishes.

SMEs sometimes need to be niche players to grow in their own right.

They can be niche in products or certain markets no one wants to touch.

Some manufacturers might want to get rid of distributors and develop their own distribution networks to increase their value chain and improve their supply chain management.

SMEs, just like Cardinal Tetras (small fish), could be small and weak on their own but strong in a group. Mergers and acquisitions can be an option for growth.

Smaller companies should always be on the lookout for opportunities to join forces with other enterprises to grow.

This article was first published in The Business Times on 18 July 2008.