The financial aspect of SMEs : the electronics sector

As Singapore moves into the 21st century, the electronics industry will feature prominently in her progress from a newly industrializing country to an industrialized country. Entrepreneurs are enticed by the apparent high turnover and increased demand for quality high-technology electronics products to enter this market through the form of small and medium sized businesses (SMEs ). Studies show that a lot of them fail because of financial inadequacies. This study attempts to probe into the financial management of SMEs in the local electronics industry. A sample was drawn from the Singapore Electronics Manufacturers' Directory. Interviews were conducted with directors of responding firms with the help of a structured questionnaire. Analysis was performed on the data gathered to arrive at conclusions regarding how the entrepreneurs employ various sources of finance in their operations and the channels through which these options are available to them. This study hopes to provide a form of reference to potential entrepreneurs as to the way the existing ones manage their finances adequately to remain in the competitive market.ACCOUNTANC