7 Tips On Utilizing PIC Grant For SMEs

All SMEs in Singapore are eligible for PIC grant. Before 2010, Singapore was facing the challenge of enhancing productivity and efficiency in different industries. As result, the government introduced the Productivity and Innovation Credit Scheme (PIC) in the budget of 2010. Through this scheme, enterprises can enjoy allowances or tax deductions of up to 400% or cash payouts of up to 60% by investing in research, development, innovation, training and automation. 

The aim of this scheme is to encourage local enterprises in Singapore to invest in processes and structures that will enhance their productivity and innovation. Although, there are many ways through which SMEs can benefit from the use of PIC grant you need tips to guide you so that your enterprise can get the most from this scheme. 

7 tips that can guide SMEs in Singapore to utilize PIC grant properly and to the maximum- Leasing or purchasing automation equipment
Technology is changing at a very fast rate. Currently, most small and medium enterprises in Singapore and other parts of the world need automated equipment to enhance efficiency and effectiveness in production and service delivery. SMEs in Singapore can use this scheme to get funds that they need to lease or purchase automation equipment that will enhance their efficiency and effectiveness which will attract more customers or clients and in turn increase their revenues and profits that they need to grow and expand.

– Training staffs
Through training, the employees of small and medium enterprises in Singapore will acquire knowledge and skills that are needed to boost productivity and innovation. This way, the enterprises will make innovative products and services available to both local and international customers and clients.

– Investing in research and development
For any venture to be successful, extensive research must be conducted first. SMEs in Singapore can use PIC grant to invest in research and development of their new ventures. This will enhance their expansion to reach more local and global markets. It will also enable them to lower the risks of starting new ventures without adequate information.

– Scaling their IT solutions
There are many IT solutions that can boost the productivity of SMEs in Singapore. However, embracing such IT solutions requires money that some small and medium enterprises in this country have been lacking over the past years. Fortunately, these enterprises can now scale their IT solutions using this grant scheme from the government. This will enhance their overall productivity as well as products and service delivery.

– Refurbishment and renovation
Some small and medium enterprises in Singapore operate under substandard conditions. Such conditions can affect the morale and performance of their employees. They can also affect the perceptions of their target customers or clients towards them and quality of their products and services. This will not only affect their productivity, but also revenue and profits that they generate. Using PIC grant, small and medium enterprises in Singapore can now improve the standards of their places of operations. This way, they will attract more clients and customers which in turn will boost their revenues and profits.

– Settling debts
Some small and medium enterprises have not been able to realize their target growth because they have debts that they are yet to settle. However, using PIC grant payouts and bonuses such enterprises can settle these debts with ease. This will enable them to achieve financial stability and ease how they manage their funds to boost innovation, productivity and growth. 60% cash payouts can also help enterprises financially by contributing to the increasing operating cost. This way, SMEs will have funds for undertaking improvements in innovations and productivity.

– Acquiring and registering intellectual property
After innovation and development of new products, SMEs want to acquire their patent. The process of registering intellectual property requires money because the product, concept or idea must be refined properly before it is registered. Some small and medium businesses might not raise that money from their profits. However, they can use PIC grant for such purposes.

Although the government of Singapore has always encouraged SMEs to expand and to target the global market, this was not easy to do when they did not have funding from the government. This is because most of them were struggling with their increasing operating costs. However, this grant scheme from the government has made growth and expansion easier for most small and medium enterprises in Singapore. 

There are many SMEs in Singapore that have already used PIC grant to invest in processes and structures that have increased their productivity and innovation.