SINGAPORE ENTREPRENEURS : PROBLEMS AND PROSPECTS

Abstract

"Industrialization is only one aspect of growth. and that advance may wither if not accompanied by evolution of ancillary and service business institutions operated by domestic citizens. Economic maturity is reached only when a diversified and multifunctional business network in the hands of native citizens has developed." - Arthur H. Cole Eversince Singapore started her first industrialization programme, the role of the local entrepreneurs in the economy has not been given due importance. It was only during the 1985/86 recession that the Economic Committee has identified the importance of having our own pool of entrepreneurs to help further Singapore's economic development. However, the development of the local entrepreneurs is not an easy task. It has to be cultivated and nurtured. It requires planning, encouragement and guidance from the government. On the other hand, it is also determined by the characteristics and qualities of the local entrepreneurs. Currently, there is confusion as to what the government should do to assist the local entrepreneurs and what are the responsibilities of the local entrepreneurs in co-operating with the government to achieve the best result for the country. This study first examines the performance of the entrepreneurs and then the measure taken by the government to assist the local entrepreneurship. The performance of local entrepreneurs is measured by quantifying the entrepreneurial efficiency which is defined using Managerial Economics. The methodology used in this study is based on the Kalirajan-Shand Model. The workability of the model is tested by employing the model to data from plastic industries in Singapore. The usefulness of the model in quantifying the factors causing the variations in entrepreneurial efficiency among the sample entrepreneurs is also examined. Such an identification thus throw light on the entrepreneurs problems so that more effective and constructive policies can be implemented. Subsequently, the various measures taken by the government in promoting local entrepreneurship are examined. Though the generally asked question of what the government can do for the entrepreneurs has some relevance, the question of what the government and the entrepreneurs can achieve is far more important in developing local entrepreneurship in Singapore. Thus, this academic exercise highlights the importance of the joint effects of the local entrepreneurs and the government efforts (removing the obstacle to entrepreneurship) in promoting local entrepreneurship. It is hoped that the findings of this academic exercise will be of some assistance towards a better understanding of the problems and the prospects of the entrepreneurs in Singapore.