According to a report from the National University of Singapore (NUS), Singaporean startups have a five-year survival rate of 53 per cent. That's higher than can be said for US startups (49 per cent) and UK startups (42 per cent), and while Singapore is known to be one of the most enterprise-friendly nations out there, our startups still struggle to achieve long-term growth.
Economists Chia Keat Loong and Reuben Foong from the Ministry of Trade and Industry (MTI) found in a separate study that of the 460,000 new firms established between 1998 and 2017, only 984 emerged "successful". That is, they were able to exit via acquisitons, or publicly list on the stock exchange several years post-formation.
However, as more startups are formed each year, the number of firms who see success in exiting could be shaken out of stagnancy. The MTI report also stated that startups are more likely to succeed thanks to the cumulative years of experience that their founders tend to possess from managing past firms, exporting activity of new firms, and Intellectual Property (IP) ownership of the startup.
Singapore startups can benefit extensively from the opportunities afforded by venture capital, but the ability to sustain growth is clearly still a cause of concern. (Source: Singapore Business Review)
What do you think is lacking in the Singaporean startup scene?