SINGAPORE: Singapore’s small business sector saw a big bump in confidence last year, reaching its highest level since 2019, according to the latest Asia-Pacific Small Business Survey conducted by CPA Australia. The positive outlook is set to continue into 2025, with over 6 in 10 small enterprises anticipating growth.
The report, released in March 2025, revealed that 62% of small businesses expect to see expansion in the coming year. Additionally, 63% of respondents expressed confidence in Singapore’s overall economic growth, reflecting a rise from 60% in 2024.
Greg Unsworth, CPA Australia Singapore’s divisional president and PwC Singapore’s digital business and risk services leader, attributed the strong sentiment to the adaptability and resilience of small businesses.
“The key to continued success is for businesses to stay agile and forward-thinking and seize new opportunities,” he said.
A significant factor driving this optimism is the continued growth of digital sales. In 2024, 63% of small businesses generated over 10% of their revenue from online channels, almost double the 36% reported in 2019. Furthermore, 76% of businesses relied on digital payment platforms such as PayPal, Apple Pay, and GrabPay for at least 10% of their sales, compared to 51% in 2019.
Another notable finding from the survey was the decline in cybersecurity incidents. In 2024, only 39% of small businesses reported experiencing losses or disruptions due to cyberattacks, down from 54% in 2023.
Mr Unsworth highlighted this positive development, noting that companies are becoming more proactive in enhancing their cybersecurity measures. “This improvement suggests that small businesses are enhancing their cybersecurity measures and are becoming more resilient and better equipped to safeguard their operations from cyber threats,” he added.
Looking ahead, the survey suggests that small enterprises remain optimistic about further reductions in cyber threats, with just 33% anticipating a cyberattack in 2025, a drop from 45% in 2024.
Despite the positive domestic outlook, small businesses expressed reduced expectations for export growth. Only 18% of respondents foresee strong revenue growth from exports in 2025, a sharp decline from 27% in 2024.
Joshua Ong, CPA Australia Singapore’s divisional deputy president and managing partner at Baker Tilly, attributed this cautious outlook to global uncertainties. Mr Ong explained, “Geopolitical tensions and the possibility of trade tariffs are most likely the cause of concerns about export growth.”
The survey also noted a downturn in innovation among Singapore’s small businesses. Only 23% of respondents plan to introduce products, services, or processes that are “unique to Singapore or the world” in 2025, down from 37% in 2024. While this figure remains above historical averages, it suggests a potential slowdown in innovation efforts.
A contributing factor could be the ageing demographic of small business owners. CPA Australia identified a “strong correlation between business owners under 40 and higher levels of business growth, digital adoption, innovation, and job creation.” With fewer young entrepreneurs entering the sector, maintaining long-term innovation and competitiveness may pose challenges.
While Singapore’s small businesses face hurdles such as declining innovation and export concerns, the overall sentiment remains positive. Increased digital adoption, improved cybersecurity resilience, and economic confidence are expected to drive continued growth.
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