ABSTRACT
Chapter 5 conjectures upon the policy options and practical advice as a consequence of the research findings. These support the role that the Singapore Government can play in driving future productivity in SMEs and the strategic and tactical actions that SME owners might pursue. The policy and practical advice are centred on the six key drivers of total factor productivity. Policy advice includes a lowering of the bureaucratic access barriers to available technological funding schemes; the creation of firm incentives that do not lead to ‘dependency’ on corporate welfare; the spread of new technology and innovations through the formation of hi-tech precincts and the co-location of firms in the same value chain; incentives for firms to create inclusive and collaborative workplaces; for the State to serve as a role model employer for high performance workplaces and to lead cultural change to innovation through a cocktail of incentives; maintain a collaborative approach of tri-partism between unions, employers and Government; and the establishment of leadership training institutes and tax incentives for training.
The practical advice for SME owners includes: work with external stakeholders to follow the latest technological best practice; move into advanced manufacturing automation and cloud computing; link pay and performance management to high performance work systems; create both monetary and non-monetary incentives; ensure regular workforce training and development to help build a culture of firm-based learning; encourage continuous innovation amongst employees; empower employees to take action; engage with the plethora of Government incentive schemes through discussions with SPRING; cluster and collaborate with other SME leaders; and foster personal leadership development plans.
