47% of startups in Singapore from services sector

Between 2008 and 2010, the average number of startups in Singapore's services sector has averaged 47% and risen steadily inline with the number of company formations. With the Government's incentives stimulating SME activity, i'm expecting this average to rise in the next few years.

Company startups

There were 29,800 company formations in 2010, 13 per cent higher than the 26,410 recorded in 2009. Growths in company formations were observed in almost all major industries, except for arts, entertainment, recreation & other services activities, which recorded a decline of 25 per cent. Significant increases in company formations were noted in the real estate (57 per cent), financial & insurance (42 per cent) and administrative & support services (27 per cent). Some 15,120 companies ceased operations in 2010, as compared to 22,390 in 2009. The significant year-on-year decline of 33 per cent was attributed to a high base in 2009, due mainly to the Accounting and Corporate Regulatory Authority (ACRA) conducting a review of defunct companies and taking action to strike these companies off its register of companies during 2009.

Business startups

The number of business formations decreased 11 per cent, from 26,880 in 2009 to 23,980 in 2010. Only the financial & insurance industry recorded an increase of 4.9 per cent in business formations. All other major industries registered a lower number of businesses set up, for example real estate (36 per cent), professional, scientific & technical activities (25 per cent), arts, entertainment, recreation & other services activities (11 per cent) and wholesale & retail (10 per cent) industries. Business cessations increased 2.1 per cent in 2010 to reach 24,050. More businesses ceased operations in industries such as real estate (29 per cent), financial & insurance (23 per cent) and information & communications (10 per cent). Lower business cessations were recorded in the manufacturing (1.5 per cent) and wholesale & retail (1.1 per cent).

Definitions

Company refers to a business entity registered under the Companies Act, Chapter 50. It has a legal personality (i.e. it has the right to own properties, it has perpetual succession and it can sue or be sued in its own name). It usually has the words ‘Pte Ltd’ or ‘Ltd’ as part of its name. Business refers to a business firm, operating either as a sole-proprietorship or a partnership. You can find more useful stats by visiting www.futurebooks.com.sg.