The Impact of the Singaporean Culture on Starting a New Business - Research Paper Example

In short, Singaporeans consider the establishment of a business as desirable. Two socio-cultural factors that have an impact on their desirability are the value of innovativeness and the entrepreneurs’ social status, which indicates that the socio-cultural environment of Singapore favors entrepreneurship.

Entrepreneurs setting businesses in Singapore have flexibility in various matters. Although the entrepreneurs that deal in the export of such things as sand, rubber, timber, and granite are required to procure a special license, yet they have the flexibility of paying the money in any currency they like since Singapore has no regulation of foreign exchange that normally exist in a vast majority of the countries all over the world. Entrepreneurs in Singapore, both novice and experienced need to closely monitor the modifying trends in the Singapore market and adapt the business to the changing trends in order to optimize the productivity and profitability of the business. “If you keep your eyes and ears open to new trends while doing business in Singapore, nothing can prevent you from being successful” (Moveandstay.com, 2012). Many options of the business venture are available to the entrepreneurs in Singapore that can be profitable for them. These options include but are not limited to the real estate business, car rentals, interior decoration, beauty parlors, and the services of packaging. It is quite favorable for the entrepreneurs to choose the business lines that they feel comfortable in rather than choosing something new.

Singapore places a huge emphasis on maintaining a high ethical standard in advertising. There is a Singapore Code of Advertising Practice (SCAP) that ensures that high standards of ethics are maintained in advertising. “The basic premise of SCAP is that all advertisements should be legal, decent, honest, and truthful. SCAP was formulated against the background of national law, international law and practice, including the International Code of Advertising Practice published by the International Chamber of Commerce” (CASE, 2008). The main factors that sell in Singapore are quality, price, and service. Prospective exporters need to realize that there is strong competition and the buyers look forward to getting a good after-sales service. The techniques of selling vary from one product to another, though they are comparable to the selling techniques prevailing in a sophisticated market in any country (export.gov, 2012).

The extent of the willingness of the members of a certain culture to accept and handle risky and ambiguous situations is known as uncertainty avoidance. Cultures that are high in the level of uncertainty avoidance like to have predictable and structured circumstances that lead to the development and implementation of strict laws and explicit behavioral rules. Such cultures are risk-averse towards engagement in the new business activities and unusual approaches of entrepreneurship. Singaporean society has low uncertainty avoidance which means that the people of Singapore have an acceptance towards ambiguity and unstructured situations. The Singaporean people like taking risks like establishing a new business and are open to new ideas.

Concluding, Singapore is a land of great opportunities for investors. The Singaporean society welcomes new ideas in business, and this openness is a great driver of innovation and creativity that provides business entrepreneurs with a competitive advantage in Singapore. Singaporean people have low uncertainty avoidance which implies that they are optimistic and tend to take risks which is again, a positive factor for business entrepreneurs. The sound system of economic management is another plus point. Singapore’s inclination is global and the Singaporean society is quite responsive. In addition to that, the economy of Singapore provides the investors with an opportunity to explore the markets of advancing economies in the neighborhood such as China and India. The tax regime of Singapore is pro-business. The agreements of free trade and investment guarantee provide the companies in Singapore with safe access to the global market. Advertising conforming to the standards of ethics is appreciated in Singapore, and the low uncertainty avoidance of the people of Singapore provides the entrepreneurs with a lot of room for growth. In light of the points discussed in this paper, it can be concluded that the Singaporean culture has a positive impact on the new businesses.