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Published on March 24, 2008

They are not alone.

According to Deutsche Presse-Agentur, rising rents and prices of raw materials have made it tougher for many business start-ups in Singapore.

More than half of the 1,500 start-ups surveyed were in the red, it was found in an annual survey of firms less than three years old conducted by the Action Community for Entrepreneurship (ACE).

Fifty-eight per cent were in the red in 2007, up from 37 per cent the previous year.

Despite the worrying factors, 84 per cent of the respondents said they had no plans of giving up for the sake of a safe job. Only those with such "unwavering commitment and resilient spirit can enable Singapore to compete in the global economy", the Straits Times quoted ACE deputy chairman Inderjit Singh as saying.

The survey examined issues including respondents' ages, educational levels and reasons for going into business. It also looked at how each start-up was funded, and the problems encountered.

Rising rents, increasing cost of raw materials, competition and manpower emerged as the main problems, said the results published in the Times.

Most entrepreneurs fund start-ups themselves although last year 12 per cent received help from friends and family, down from 23 per cent the previous year.

Those going into business themselves are increasingly better educated, with 74 per cent having tertiary and higher educational qualifications compared with 70 per cent in 2006.

The largest group of entrepreneurs, 46 per cent, were aged between 31 and 40.

ACE has proposed raising the 50,000 Singapore dollar (Bt1.1 million) cap on Singapore's loan schemes, which were set up several years ago to help small businesses get off the ground.

For Thai small and medium enterprises who also export their products, the Bank of Thailand recently introduced a soft-loan package offering them a total of Bt40 billion to help them get through the tribulations caused by the strong baht.

This is better than nothing amid the current tough environment for exporters.

The Nation