Singapore small businesses set for growth and innovation surge in 2024

2024 will be a promising year for small businesses in Singapore. It will be a year of growth and innovation.

The 15th annual Asia-Pacific Small Business Survey conducted by CPA Australia seeks to unveil the attributes that define prosperous small businesses across the region. According to the findings, a notable 58% of small businesses in Singapore anticipate growth in the current year, representing the most optimistic outlook since 2018. A quarter of businesses surveyed expect sustained growth in 2024, a level not seen since the aftermath of the global financial crisis in 2011.

The growing confidence of small businesses in the local economy and the greater emphasis placed by these businesses on innovation and technology are major factors in the growth to come.

The survey was conducted across 11 markets and found that younger small business owners play a big role in driving growth. They are more likely to use technologies such as e-commerce and social media, innovate, and are less risk-averse than older owners.

CPA Australia Singapore Divisional President and Reputation and Risk Leader at Deloitte Southeast Asia, Cheung Pui Yuen referenced the Business Optimism Index from Singapore Commercial Credit Bureau (SCCB). This index, which increased for the third consecutive quarter in Q2 to +4.82 percentage points, compared to +4.48 percentage points in the first quarter of 2024, was described by Yuen as “a catalyst for unprecedented growth and success.”

37% of businesses surveyed intend to introduce new products, processes or services unique to the market or the world, the third-highest result of the 11 markets surveyed.

According to the survey results, small businesses that witnessed growth in the previous year also augmented their workforce. The data revealed that over a third (38%) of these businesses expanded their staff, showing a significant increase from 25% in 2022. Nearly half (47%) of small enterprises in Singapore intend to enlarge their workforce in 2024 to address the escalating demands of their operations.

The survey also found that 80% of small businesses in Singapore engage in ESG-related activities. Many local small businesses prioritize initiatives such as adopting environmental management systems (EMS), ensuring sustainability within their supply chains and investing in renewable energy sources.

However, one challenge remains constant for small businesses in Singapore – cybersecurity. In 2023, over half (54%) experienced losses from cybersecurity incidents, surpassing the survey’s average (41%). Approximately 45% anticipate cyberattacks this year. However, only 43% have assessed their cybersecurity measures within the last six months, underscoring the immediate necessity to fortify defenses to safeguard their operations and data.