Entrepreneurial Economies in the Society

Entrepreneurial Economics Essay
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Table of Contents TOC \o "1-3" \h \z \u Table of Contents PAGEREF _Toc62511130 \h 1Introduction PAGEREF _Toc62511131 \h 2Identification and evaluation of opportunities PAGEREF _Toc62511132 \h 2Development of a plan. PAGEREF _Toc62511133 \h 3Implementation. PAGEREF _Toc62511134 \h 3Growth. PAGEREF _Toc62511135 \h 5Covid-19 Impact PAGEREF _Toc62511136 \h 5Way forward for the economy. PAGEREF _Toc62511137 \h 6Conclusion PAGEREF _Toc62511138 \h 8
Introduction
Entrepreneurship refers to finding an existing market gap and addressing it in a way to generate profits. Every step of this process is marred with challenges. To finally create a sustainable and profitable business venture, entrepreneurs have to take financial risks and navigate many issues that threaten their vision. Entrepreneurs are bound to encounter numerous failures such as lack of funds, low demand in the market, or internal sales decisions. Some rise above it while others are not so fortunate leading to the closure of the once-promising business ventures. The risk involved makes entrepreneurial ventures so rewarding as the consumer market favors individuals who see opportunities, solutions, and endless possibilities where others see problems. This essay seeks to understand entrepreneurship's process through the critical analysis of Singapore's developed economy and how its institutional environment has allowed entrepreneurship to thrive.
Identification and evaluation of opportunities
Over the past decade, Singapore has managed to position itself among the leading economies thriving in innovation, research, and development. Its vibrant entrepreneurial environment is becoming an attractive proposition for local and international innovation startups. For instance, Taiger is an artificial intelligence company founded in Spain which recently moved its intellectual property and key operations to Singapore. The vibrant innovation ecosystem has also aided local startups such as mobile security specialist V-Key and visual search solutions provider ViSenze to make their mark globally. The county has made this possible by providing quality infrastructure, research facilities, a pool of well-trained talent, and most importantly, support from the government.
These factors have been attributed to the competitive and attractive ecosystem of doing business. Consequently, this has placed Singapore at number one in innovation among Asian nations according to the annual Global Innovation Index 2017 CITATION For18 \l 1033 (Forbes, 2018). Commitment to research and development by the government and private sector has allowed entrepreneurship to thrive. For instance, there have been investments of around S$19 billion (US$13.9 billion) in the research and development capabilities of Singapore Under the government's Research, Innovation, and Enterprise Plan (RIE 2020). These investments support strategic plans in sectors with high growth predictions over the next five years, such as health, engineering, digital economy, urban solutions, and biomedical sciences CITATION For18 \l 1033 (Forbes, 2018).
Development of a plan.
Over the last five decades, Singapore's phenomenal economic development has provided the country with the needed entrepreneurship platform. Many of the citizens are now well off, and as a result, they can take on entrepreneurship without risking everything. Taking on something uncertain like starting a business was countercultural for a large part of this period. The citizens mainly preferred working for big entities or the government. Through political leaders, the government has opted to discuss the importance and benefits of entrepreneurship relentlessly.
Consequently, universities sponsored by the state, such as the National University of Singapore, have aggressively pushed innovation through their programs. For instance, the university has a program that sends its students for the first-hand experience in overseas entrepreneurial hubs. Also, state-owned television companies MediaCorp has invested in television programs that celebrate entrepreneurial milestones CITATION Ant15 \l 1033 (Anthony, 2015).
The government has managed to create a reinforcing cycle that fosters entrepreneurship. This is because young individuals are now motivated and interested in entrepreneurial ventures and successful entrepreneurs want to taste success again. Immigration remains a dividing topic in Singapore, like in other countries; however, the rules make it easier for highly educated individuals and workers to get employment passes. As a result, the government has managed to create a close-knit entrepreneurial community that gives birth to numerous startups in just a matter of hours.
Implementation.
One of the strategies used by the government is the Global Investor Program (GIP). This scheme is designed to attract serious investors by offering permanent residents to whoever wished to relocate to Singapore. With these programs, other nationals can attain permanent resident by investing a minimum of S$2.5 million in companies registered in Singapore or the GIP fundCITATION int20 \l 1033 (Intertrust Group, 2020). The fund consequently goes into investing in other startups in Singapore. The entrepreneur can enjoy the right to work, study and live in Singapore with spouse and children under 21 included. Parents and children above the age of 21 are granted a 5-year visit visa.
Corporate tax rates for new startups in Singapore are another driving factor towards entrepreneurial development. New startups are eligible for the Start-up Tax Exemption (SUTE) scheme, which provides tax relief on the first S$100,000 of expected chargeable income for three years of consecutive assessment. To qualify, the company needs to have a maximum of 20 individual shareholders, and corporate shareholders should have at least one of them hold 10% of individual shares. Property and investment holding companies are, however, ineligible for this scheme. For companies that fail to qualify for (SUITE), they can enjoy partial tax exemption based on chargeable income of up to $300,000. 75% tax exemption is applied to the first $10,000 of chargeable income, while a 50% exemption is applied to the next $290,000 of your chargeable income.
1997-2000

2001

2002

2003-2004

2005-2006

2007-2009

2010- subsequent YAs

26%

25.5%

24.5%

22%

20%

18%

17%

Singapore headlines corporate tax rates-Timeline.
Singapore levies on profits, not on revenue, with the rate being 17% from 2010 and subsequent years of assessment. Therefore, Singapore avoids double taxation, dividend or capital gains taxes, estate/death/inheritance tax and personal taxes start as 0%, with the maximum being 22%. The country is also known for its strict implementation of its intellectual property laws. Combine this with favorable taxation, and it becomes easy to understand why Singapore is ranked among the top competitive economies in the world.
Growth.
The impact of entrepreneurship on the economy of Singapore is undeniable. According to Startup Genome's Global Ecosystem Ranking Report 2017, Singapore managed to overtaken Silicon Valley as the top place for startup talent CITATION For18 \l 1033 (Forbes, 2018). The country has managed to find a working formula for growth and opportunity creation. For instance, the government has recognized that security will be crucial in the digital economy competition. As such, the country's first integrated regional cybersecurity hub was set up in 2018. Startups such as ViSenze are looking to change consumer online shopping. The company is a pioneer in advanced visual-search and image-recognition solution development. Their innovation looks to allow co...