Incentives for corporate investors (beyond individual business angels currently) will help promising start-ups and SMEs acquire better resources in accelerating their growth.
Local enterprises and start-ups often face challenges in financing their growth. Countries around the world have also been focusing on supporting SMEs and start-ups. For example, China has, in recent months, unveiled a targeted tax and regulatory plan to encourage banks to fund small enterprises and we propose that the Singapore Government should implement the following to help fast-track start-up growth:
- To allow approved corporate investors (in addition to individual investors) to receive tax deductions for investing in qualifying start-ups, to encourage greater corporate venture capital activities, and
- Confer a concessionary tax rate on banks and financial institutions providing loans to SMEs, in addressing their funding needs and accelerate their growth
To find out more about our proposals, visit here.