SINGAPORE : A total of 18,846 businesses have shut in the first half of 2012, according to data from the Accounting and Corporate Regulatory Authority of Singapore (ACRA).
This is due in part to challenges like rising business costs and increasing competition.
A new initiative was launched on Monday to help start—ups cope with these challenges and get their business off the ground.
The new starter—kit by the Action Community for Entrepreneurship (ACE) offers an online package of special deals designed to help companies in operation for two years and below gain access to resources.
It features 40 merchants, such as OCBC Bank and Amazon, to provide start—ups with banking, IT and marketing services.
The ACE Starter Kit aims to reach out to 10,000 start—ups within a year.
According to ACRA, entrepreneurship in Singapore has more than tripled in the last decade and over 55,000 new companies were registered in Singapore last year.
Launching the new initiative, Minister of State for Trade and Industry, Teo Ser Luck, said new businesses can still thrive despite the uncertain global economic outlook.
Citing some examples, Mr Teo said Bysi International, a local fashion boutique, has grown and expanded beyond Singapore to 12 other countries, despite starting out in the aftermath of the Asian financial crisis in 1998 when economic conditions were unfavourable.
He added that Stream Media was another example of a start—up that managed to secure S$1 million in investment from three companies, Stream Global, SingTel and National University of Singapore in 2011, and now generates S$400,000 in turnover despite external economic conditions.
Mr Teo said: "Most importantly, they must have a product or service that is sellable and meets the demands of the market, and secondly, to have a sustainable business plan where it is adaptable and resilient enough. It is important that every company and start—up remains dynamic to the situation in the market and also to the competition."
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