For entrepreneurs the world over, going green isn’t just about saying the right things or ticking a predefined to-do list. For most, it involves serious compromises to their original business vision.
Reducing carbon footprints, using minimal packaging, or transitioning to energy-efficient operations can often come at a cost, be it in efficiency, inventory losses, or simply additional time spent. We often have a superficial mental picture of sustainability that is all about solar panels and recycled materials, but we (and our investors) can forget that green business often involves additional time or expertise that must be paid for somehow. Depending on what you need to achieve, the trade-offs can feel steep, especially for activities that do not have immediate or tangible returns. Because of this, it is important to seek financial management for SMB’s in order to get much-needed professional assistance
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In Singapore, things are a bit different, as they often are. In the city-state, an established yet still-growing green finance ecosystem is offering practical support to businesses that want to integrate sustainability without seriously compromising their profits. When it comes to green loans in Singapore, businesses are almost spoilt for choice, from government-backed loan schemes to specialised finance firms.
The remarkable availability of green financing is down to Singapore’s bold ambitions. Through the Singapore Green Plan 2030, the city-state is positioning itself as a regional hub for green investment. Entrepreneurs have a key role in this plan, with Singapore’s government depending on them to create the green innovation needed to drive change across all of the country’s key sectors, from energy and manufacturing to transport, food, and finance.
If you’re ready to set up or scale a business with sustainability at its core, Singapore might be one of the best places in the world to make it happen. Here’s how you can get green funding for your business:
1) Work with banks that offer bespoke green financing products
Due to high demand, several banks in Singapore offer targeted loans for green entrepreneurs. Aside from more straightforward green loans, businesses can also access sustainability-linked lending options and find advisory services specifically tailored to businesses transitioning to lower-carbon operations. These services are grounded in recognised and proven sustainability frameworks, greatly reducing the risks of operational transitions.
2) Check Enterprise Singapore’s green financing
Through Enterprise Singapore, qualified SMEs can apply for sustainability funding via the Enterprise Financing Scheme – Green. The scheme was originally set up to support project developers and technology solution providers working in key areas such as renewable energy, green buildings, waste treatment, and clean transportation. However, since April 2024, the scheme has been extended to include green solution adopters, making the funding more inclusive to a wider variety of businesses.
3) Take a deep dive into green finance with ISCA
The Institute of Singapore Chartered Accountants (ISCA) has compiled funding sources and reporting requirements for green entrepreneurs alongside useful case studies that outline how other small- and medium-sized enterprises have successfully transitioned to greener operations. With the ISCA’s resources, you might find cases that closely mirror your own, removing much of the guesswork that may be required in your business’s transition.
4) Partner with the Singapore Green Finance Centre
If you’re looking to build sustainability expertise or connect with like-minded players within your space, the Singapore Green Finance Centre may be the place to go. A collaboration between the Monetary Authority of Singapore (MAS) and nine leading global financial institutions, the centre offers invaluable engagement opportunities, not only helping you bridge sustainability knowledge gaps but also meet potential investors who believe in your sustainability mission as much as you do.
5) Tap into the SG Eco Fund
Launched by the Ministry of Sustainability and the Environment (MSE), the SG Eco Fund provides grants for projects that contribute to environmental sustainability, particularly ones that can credibly promise a continuous community impact. If your business involves community outreach, this fund can make it easier to bring your ideas to life. Best of all, the application process is open to businesses, individuals, and non-profits, making it a flexible and accessible tool for a wide range of entrepreneurs.
6) Join the Singapore Sustainable Finance Association (SSFA)
The SSFA is an industry-led initiative that facilitates dialogue on green finance between financial institutions, corporations, and regulators. As a member, you get access to exclusive events as well as additional resources to support your sustainability efforts.
7) Make yourself an active participant in SG’s sustainability efforts
As we’ve seen throughout the first decades of the 21st century, government incentives, disclosure requirements, and investor expectations around sustainability have evolved significantly, particularly in fast-moving markets like Singapore. Businesses that were slow or half-hearted in adapting to these changes often missed out on early benefits such as access to green finance, improved stakeholder trust, and competitive positioning.
To stay ahead, consider becoming more engaged in Singapore’s sustainability ecosystem. More participation gives you earlier visibility into upcoming funding programmes, regulatory shifts, and opportunities for cross-sector collaboration. Staying connected to key agencies like Enterprise Singapore, the MAS, and the National Environment Agency (NEA) can keep your sustainability strategy aligned with national priorities, putting your business first in line for new rounds of funding.
In Singapore, sustainability doesn’t have to compete with profit
Green entrepreneurship is not an easy feat, but it may be a lot more doable in Singapore than it is anywhere else in the world. In Singapore, entrepreneurs and investors will find a supportive policy environment, mature green financing infrastructure, and access to a full spectrum of specific expertise, which are ingredients that are lacking in many other developed economies. In other words, if your business aspires to heal the planet even as it creates shareholder value, Singapore offers the right tools as well as partners who will put up cash to help you succeed.