Mr Teo Ser Luck at the Start-Up Enterprise Conference at NTUC Auditorium, 22 Aug 2011

SPEECH BY MR TEO SER LUCK, MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY AT THE START-UP ENTERPRISE CONFERENCE 2011 ON 22 AUGUST 2011, 9.25AM AT NTUC AUDITORIUM

Ms Juthika Ramanathan, Chief Executive, Accounting and Corporate Regulatory Authority;

Ms Chen Yew Nah, Managing Director, DP Information Group;

Distinguished guests;

Ladies and Gentlemen.

Introduction

1. Good morning. I am pleased to join you this morning at this Start-up Enterprise Conference 2011. I congratulate the Accounting and Corporate Regulatory Authority, DP Bureau and the Action Community for Entrepreneurship for organising this conference and launching the third edition of the Regulatory and Business Guide for Start-up

Enterprise Environment

2. The Singapore government recognizes that entrepreneurship is a key pillar of growth for our economy and has therefore been promoting a pro-enterprise environment. In 2003, the Action Community for Entrepreneurship was formed as a movement to bring about a more entrepreneurial Singapore. Over the years, this private-public collaboration has enhanced the entrepreneurship landscape. Its efforts have made it easier to start a business now as compared to 10 years ago.

3. By changing mindsets towards entrepreneurship, building up the infrastructure to support entrepreneurs and reducing the regulatory burden on businesses, we have fostered a strong environment for businesses to thrive.We also have in place a comprehensive suite of assistance programmes to help start-ups and young businesses grow. These programmes range from tax incentives to financial assistance.

4. According to the World Bank, for the last five years Singapore is the easiest place to do business. We are also ranked Number One in the Global Innovation Index by INSEAD and Number Four in the Capital Access Index by the Milken Institute. These recognitions are a testament of our efforts to provide the fundamentals for businesses to flourish

Thinking Global

5. Start-ups are an important part of our economy, as they form the pipeline for great companies to emerge. According to research by the Kauffman Foundation, start-ups also contribute significantly to job growth in the US economy. However, a conducive business environment does not necessarily give rise to a vibrant start-up community or good start-ups. To build a vibrant start-up community, we need entrepreneurs who are ambitious, innovative, and able to provide good solutions to the market.

6. To all you entrepreneurs and start-ups here, I applaud your passion and courage to strike out on your own. Having had experience starting a business, I know the uncertainties you face. As you advance in your career as an entrepreneur, I encourage you to dream big and think global, and not be constrained by our small domestic market. The world is your oyster. Having global ambitions will help you to seize opportunities out there. Great success awaits those who dare to dream big.

Creating your own Future

7. Of course, dreaming big also comes with big obstacles and uncertainties. As entrepreneurs, you should relish such challenges and see these road blocks as opportunities. Entrepreneurs who find an innovative solution around a problem through innovation and adapting to the situation can only grow stronger and more prepared for larger storms ahead.

8. You will see that the economic conditions are getting more dynamic with more frequent cycles and larger fluctuations. As entrepreneurs, you control your destiny. You should never be a victim of our environment and times. In fact, savvy business owners should leverage on uncertainties and downturns to grow as costs are generally lower. Many of the global companies such as Microsoft and Hewlett-Packard were started during recessions. Nearer home, gothere.sg, a popular direction and navigation portal was started in the 2008 recession. Entrepreneurs need to seize such opportunities to create their own space and make a difference.

Innovation as the Key to Scaling

9. Besides thinking global and seizing opportunities, I also urge you to embrace innovation. Innovation is not just about improving an existing product offering. It’s about redefining the rules of a product altogether. Google is a good example of an innovative company. By continuously redefining the search engine market through innovative search technologies beyond the conventional web crawlers, Google shaped the playing field with innovative technologies such as PageRank, Universal Search and Google Instant.

10. Innovation can also help you to scale your business, and to achieve more with the same amount of resources. An example is the Chinese fast-food chain Ruyi. They have innovated their processes by adding robot woks to their 'team' of kitchen staff. Using a mechanical arm to stir while the wok tosses the food, the chain has been able to reduce the workers per outlet by 30%, enabling them to do more with fewer resources. Similarly, Young start-up, Artyii, innovated by creating an online art network where artists and art buyers across Asia could interact and sell their pieces. Compared to the traditional brick-and-mortar art gallery that is sales labour intensive, Artyii was able to quickly scale their business Asia-wide without having to base their limited manpower in these regions.

11. I encourage you to learn from other companies. Study the reasons for their successes, their setbacks, and even for their failures, and I am confident that you will have many valuable takeaways.

12. Even though we do not yet have start-ups like Google or entrepreneurs like Mark Zuckerberg, we do have some successful young companies. For example, Yolk, an interactive digital media agency was acquired by the global advertising network, Grey Group, last year. Similarly, a global leader in human capital solutions, CareerBuilders, acquired JobsCentral Singapore in May this year as a springboard into the Southeast Asian market.

13. I believe we are moving in the right direction. Someday, some amongst you will emerge as market leaders and do Singaporeans proudS

Conclusion

14 .In conclusion, I would like to thank the organizers for providing this conference as a platform for our start-ups to network and learn. To our start-ups, I hope that you will benefit from the experience of others, and be further motivated to conquer greater heights. With this, I wish you a fruitful conference.

15. Thank you.