ENCOURAGING ENTREPRENEURSHIP

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1 16 ENCOURAGING ENTREPRENEURSHIP Charles Wong, Managing Director, Charles & Keith Charles & Keith is one of the fastest growing retailers in ladies footwear in the region. Started in 1996, this booming local retailer now has 18 outlets in Singapore and 96 concept stores in 18 countries. SPRING is happy to have played a part in Charles & Keith s accelerated growth in technology, land, manpower and operations.

2 17 SPRING ANNUAL REPORT 06/07 Can you turn your vision into value? People who dare to dream dare to turn their dreams into reality. At SPRING, we help you realise your vision by giving you hope and help when you start out.

3 18 ENCOURAGING ENTREPRENEURSHIP Biofuel Research turns waste into opportunity SPRING invested in us before everybody else did, and for that we are very grateful. ~ Kom Mam Sun, Founder, Biofuel Research

4 19 SPRING ANNUAL REPORT 06/07 If someone told you five years ago that you could turn used cooking oil into a profitable business, would you believe it? Well, 33-year-old Kom Mam Sun believed it. He took a leap of faith and has never looked back since. One of my friends told me how used cooking oil could be turned into biodiesel, said Mam Sun. It takes very little equipment, is environmentally friendly, and a renewable source of energy. Mam Sun, an accountant by training, found the idea so exciting that he gave up his well paying job in June He also sold his flat at Holland Village and started Biofuel Research. Biodiesel is a processed fuel produced from biological sources, such as vegetable oil waste, and can be used as an alternative fuel to crude oil. Without any knowledge of biodiesel production, Mam Sun soon realised that it was an uphill task as research and development was tedious and difficult. But the resourceful businessman refused to give up. He attended short courses overseas to learn about biodiesel production and took advantage of the free resources available on the Internet. After one and a half years of persistence and research, Mam Sun finally succeeded in producing biodiesel in But convincing clients to buy from him proved to be tricky. Competition from the big boys like Shell and Caltex was strong, and clients were not interested in biodiesel because diesel was still cheap at that time. Business finally picked up when oil prices started escalating and biodiesel became a cheap and viable source of fuel for environment-conscious clients in Japan and the US. Last June, Mam Sun opened his first biodiesel plant at Tuas. Funding for the plant came from an independent investor who pumped in $300,000. SPRING also matched the investment dollar for dollar under the Startup EnterprisE Development Scheme or SEEDS. SPRING invested in us before everybody else did. And for that, we are very grateful, said Mam Sun. In addition to producing biodiesel, Biofuel Research also provides consultancy services to overseas clients interested in building biodiesel plants. With greater interest in renewable energy and awareness of climatic changes globally, the future for Biofuel Research looks bright. The company recently achieved a turnover of $1 million and Mam Sun is in the midst of moving his Tuas plant to a larger unit one street away. I m gaining a wealth of experience which my contemporaries don t have, he said happily. I get to meet people from all walks of life, from contractors to hedge fund bosses and some very rich people. I would never get such exposure if I had stayed in my job. Sowing the SEEDS of tomorrow s businesses The Startup EnterprisE Development Scheme or SEEDS for short is managed by SPRING. The fund aims to encourage private sector investments in start-ups involved in developing new or better products, processes and applications. Since its launch in October 2001, the fund has made some 150 investments worth more than $40 million. Under the scheme, SPRING matches a dollar for every dollar, up to $300,000, that the entrepreneur has raised from a third-party investor. Find out how you can tap on SEEDS to grow your business at Helping local enterprises EnterpriseOne (One Network for Enterprises) is a multi-agency initiative managed by SPRING, which aims to help local enterprises find the answers they need to start, sustain and grow their businesses. The customer-centric web portal was developed based on feedback from more than 500 businesses, with content from 35 government agencies, chambers of commerce and industry associations. It attracts an average of 40,000 unique visitors every month. So if you are looking for government information and services for businesses, start with the EnterpriseOne Portal at Or call the EnterpriseOne hotline at: (65) , from 8.30am - 6pm (Mon - Thu) and 8.30am pm (Fri).

5 20 ENCOURAGING ENTREPRENEURSHIP MeowMoo proves youth is no barrier SPRING provided the seed money for our business, without which we wouldn't have been able to pay for the cost of production and marketing. ~ Freddy Lim, Director, MeowMoo Productions Pte Ltd

6 21 SPRING ANNUAL REPORT 06/07 Starting a business is never easy, less so if you are a youngster barely out of school. Just ask 21-year-old Freddy Lim, who started T-shirt design label MeowMoo two years ago with two friends, Max and Xingjie. The trio were still studying in Temasek Polytechnic when they decided to start their own business, selling self-designed T- shirts to retailers. Shop owners felt they were too young and refused to believe that the tees were made by them. Family and friends, too, had their doubts about the business. Some of our friends said, So young, sure cannot one. Our parents also told us to go back to study, recalled Freddy with a sigh. But the three friends refused to give up. With their savings and funding from Freddy s mum and relative, they pooled together $12,500 to start the business. An additional grant of $50,000 came from SPRING s Entrepreneurship Talent Development Fund (ETDF). For every $1 put in by a student's business venture, the grant contributes $3, and the participating polytechnic or university contributes an additional $1. Since 2004, the fund has invested some $1.5 million in 40 creative businesses started by students at institutes of higher learning. These businesses range from new software development to mobile solutions and retail. SPRING provided the seed money for our business, without which we wouldn t have been able to pay for the cost of production and marketing, said Freddy, who is now a final year student in Interactive Media Design. Asked if juggling work and school for the past two years has been tough on him, Freddy said with a laugh, Tough? No lah. We can always distribute the work among ourselves, so it s ok. Today, MeowMoo s tees can be seen at Bugis Village, Chinatown, The Heeren, Marina Square and Queensway Shopping Centre. Already, Freddy and his partners have lined up some big plans for MeowMoo. We re looking into selling the T-shirts overseas. In fact, we ve just sent some samples to a potential client in Philadelphia. If all goes well, we may soon see MeowMoo in the US, and our young entrepreneurs will also be one step closer to their big target: to achieve a quarter of a million dollars in revenue by end Entrepreneurship Talent Development Fund (ETDF) The ETDF helps budding student entrepreneurs to turn their business ideas into reality. The fund aims to seed another 70 business ventures over the next five years. It is open to full-time and part-time students of all nationalities, as well as alumni members within two years of graduation, from the following participating Institutes of Higher Learning: - Nanyang Technological University - National University of Singapore - Singapore Institute of Management - Singapore Management University - Nanyang Polytechnic - Ngee Ann Polytechnic - Republic Polytechnic - Singapore Polytechnic - Temasek Polytechnic Application can be made through any of the above institutions. For details on ETDF, visit Aiming for ACE To create a more entrepreneurial environment in Singapore, the Action Community for Entrepreneurship (ACE) was formed by the business community and government, with SPRING as the lead agency. ACE helps encourage the spirit of entrepreneurship through these initiatives: ACE Speaker s Circuit: This is a platform that encourages entrepreneurs and prominent business personalities to give talks in schools and share their business experience. Enterprise Day: This annual event celebrates entrepreneurship in youths and equips them with knowledge in practical business development areas such as calculating risks and planning. BlueSky Exchange and Evening Events: These regular networking sessions provide a platform where entrepreneurs exchange ideas, build contacts for collaborations, seek help and advice on growing their business ideas and give feedback on government policies and initiatives. ACE BlueSky Festival: The flagship annual event celebrates the entrepreneurship movement in Singapore, drawing hundreds of entrepreneurs from Singapore and the region to share and learn from one another s experiences on doing business within the region. For more details on ACE events, visit

7 22 ENCOURAGING ENTREPRENEURSHIP OTTO GLOBAL trades between East and West in Singapore I link suppliers in China with customers in Europe so, to me, Singapore is the best place to be located in because it is in between the East and West. ~ Axel Vilasís Ferré, Founder, OTTO GLOBAL

8 23 SPRING ANNUAL REPORT 06/07 Spanish entrepreneur Axel Vilasís Ferré faced a challenge when he decided to move to Singapore two years ago. How could he get the necessary approval to stay in Singapore and start a company here? Fortunately for the 25-year-old, he found the answer in EntrePass a permit jointly managed by SPRING and the Ministry of Manpower. EntrePass allows a foreign entrepreneur to stay in Singapore to set up a business provided he or she meets certain guidelines. With the EntrePass, Axel was able to settle down quickly in Singapore and set up a trading firm, OTTO GLOBAL, which deals in hardware and fittings. It helped that his previous job in a trading company in Spain often required him to travel to Asian countries like China, India, Taiwan, as well as Singapore. So when he decided to start a company, Singapore was a natural choice because of its good business environment. Now, he shuttles between China and his Barcelona hometown to meet his suppliers and customers. I link suppliers in China with customers in Europe so, to me, Singapore is the best place to be located in because it is in between the East and West, Axel said. Axel also appreciates the help he has received from local government agencies like SPRING. I attended a gathering for EntrePass holders at SPRING, he explained. I was surprised that a government agency would take the trouble to meet us, find out how we were doing and ask us what problems we faced because this was not something that you would see in Spain. Axel has recently renewed his EntrePass for another two years and plans to expand his business further. His next challenge? To find Singapore suppliers for his European clients. Singapore has given me much more than what I have given to it, Axel said. It s only fair that I give some business to Singapore. But it s difficult to find suitable suppliers here so I hope SPRING can help link foreign entrepreneurs like us to suppliers in Singapore. Local help for foreign entrepreneurs The EntrePass is an Employment Pass for foreign entrepreneurs who would like to start businesses in Singapore. Jointly managed by the Ministry of Manpower (MOM) and SPRING, it aims to attract more foreign talent to Singapore to enhance the local entrepreneurial scene. Interested foreigners can submit their applications to MOM. All applications will be assessed by SPRING. Successful applicants will receive the EntrePass from MOM. More information and the application form are available on the EntrePass website at publish/momportal/en/communities/ work_pass/other_passes/entrepass.html. Even his company s name OTTO GLOBAL is a combination of East and West. OTTO means eight in Italian, and reads the same forwards and backwards like a mirror image. Coincidentally, eight is also an auspicious number for the Chinese. This carefully chosen name has certainly brought him good luck. Now in its second year of business, the company is expected to break even this year.

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