4 trends that SMBs can still benefit from in 2024

We live in a time when environmental concerns are at the forefront for all types of business – large enterprises and SMBs. When businesses adopt sustainable practices, they not only contribute to environmental well-being but also help boost their growth and innovation.

These initiatives often also resonate positively with the growing segment of eco-conscious consumers. In fact, 56% of Singapore business leaders think that adopting sustainability strategies help create a positive image for their company, according to a study by NTUC Learning Hub. The same study also showed that 53% of leaders believed it fuelled business innovation.

Some simple ways that SMBs can take advantage of this trend are by adopting eco-friendly practices, integrating energy-efficient technologies, and implementing strategies to reduce waste. One SMB that has reaped the benefits of sustainable practices is Onn Wah, a manufacturing firm that specialises in precision metal components. Onn Wah replaced traditional lightings with LEDs, installed motion sensors, and reduced air leakages in their systems. They also installed a solar panel system on their rooftop, sensors to track energy usage and solar films on windows to further decrease energy consumption. These initiatives are expected to result in over 70,000 kWh in energy savings for the business.

The emphasis on employee wellness has grown steadily in the last few years. Both businesses and their employees are recognising the impact a healthy workforce can have on productivity and morale. A joint study by the Duke-NUS Medical School and Singapore’s Institute of Mental Health (IMH) found that poor mental health among workers could result in a loss of up to $15.7 billion for businesses. Out of this, 81.6 percent was attributed to lost productivity when employees were not at their best in the workplace while employees who did not show up for work made up 14.2 percent of the loss.

For SMB owners, this means that prioritising employee well-being becomes a critical and necessary part of growing their business. Implementing wellness programs and offering mental health support and resources are ways in which they can create a work environment that brings out the best in their teams. Continuing to allow flexible arrangements can also help employees balance their work and life better and also feel more satisfaction with their jobs. To help employees stay productive in flexible arrangements, SMBs can adopt collaboration tools like the Microsoft 365 suite, with its range of apps for editing, viewing and sharing files among other features, or Google Workspace which offers similar benefits.  

In response to the economic uncertainties posed by recent global events, the Singapore government has continued their efforts to support SMBs. These include grants, subsidies, policy changes and new programmes that offer increased funding support to alleviate the burden on businesses.

In the 2023 Budget for example, it was announced that the Enterprise Financing Scheme (EFS) would be extended until 31 March 2024, to help SMBs navigate the impact of the economic downturn and rising energy prices. The deadline for applications to the Energy Efficient Grant (EEG) was also extended to 31 March 2024. Meanwhile, other initiatives like the Productivity Solutions Grant (PSG) and SMEs Go Digital continue to be available for SMBs to seek funding support for adopting IT solutions and services to drive digitalisation efforts. Whether it's through programmes to spur innovation, digitalisation, or internationalisation, SMBs should look out for new initiatives and support from the government in 2024 as well. 

The surge in automation witnessed in recent years is poised to become even more pronounced in 2024, offering SMBs diverse opportunities to enhance efficiency and drive revenue growth. Automation can have significant transformative potential for SMBs, in various aspects of business operations, from marketing campaigns to manufacturing processes and daily tasks.

Everyday tasks that once consumed valuable time can now be automated, allowing SMBs to redirect resources towards more productive and revenue-generating activities. The recent State of Work report from Slack revealed that 81 percent of employees are more productive when they can automate routine tasks such as getting expense report approvals.

In marketing for example, automation tools can be used for managing customer data, streamline campaigns and personalise customer interactions. Customer relationship management (CRM) tools like Pipedrive or HubSpot for example, help SMBs track and organise contacts and leads and after setting up some initial rules. Similarly, Hootsuite and Buffer are platforms that can be used to automate advertising campaigns and social media publishing.

In addition to exploring new tools for automating other routine tasks, SMBs can also look for new initiatives and programmes available in Singapore. Recently, a new digital automation and integration solution was launched by the Infocomm Media Development Authority’s (IMDA) and its partners in the local tech ecosystem, under the SMEs Go Digital programme. Through the scheme, over 1,500 SMBs are expected to be onboarded and given access to funding, resources and opportunities to drive their digitalisation efforts in a number of aspects including human resources, marketing, sales, and finance. 

The year is poised to be one filled with opportunities and challenges for SMBs. SMBs can look to benefit from trends around sustainability, employee wellness, automation and support from the government to overcome potential challenges this year.