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Frequently Asked Questions
 
  1. What is the purpose behind the proposed financial support for students' driven business proposals?

    The objective is to encourage students to learn build interesting and promising businesses. A SMU-SPRING fund has been set up to fund such business proposals. There is a commitment of up to S$3.2 million dollars to be invested over the next four to five years.

  2. What is the amount of support?

    Each eligible team will be given amounts of up to S$66,660 dollars. However, the student team should also invest one fourth of the amount invested by the fund.

  3. How will the money be paid?

    Money will be invested against agreed upon milestones. This will ensure that SMU does not hold significant equity in the company.

  4. Should the business proposal be based on a new technology invented by the team?

    No. The business proposal should identify an interesting business innovation that is exciting to the team, preferably based on some emerging disruptions.

  5. Can the business proposal use / exploit some of the new and emerging technologies?

    Sure. We do not limit the use of any technology that is relevant to the business.

  6. What type of proposals will attract the maximum investment?

    Business proposals that exploit a significant disruption based on a compelling innovation, addressing a large emerging global market and safe guarded by high entry barriers will attract the maximum investment?

  7. How fast will the decisions be made?

    All applicants will receive an acknowledgement upon submission of proposals. The University will inform applicants on the outcome of their applications 2 weeks after the submission deadlines. Incomplete proposals will delay this process. The disbursement of funds will be done in a further 4 weeks time.

  8. Should the student team make a presentation to the Committee?

    The student team should prepare a presentation that captures the essence of the business proposal that they submitted. It is best to prepare this presentation when the business proposal is complete.

  9. Will business proposals for setting up retail or trading company be supported?

    A business proposal that is a simple and straightforward retail or trading will not be a very attractive candidate for investment. Those addressing significant challenges in branding, development of distribution channels etc. may be considered. However, proposals involving the creation of new markets that will change the way the world works will get the maximum level of funding. The funding levels will be low or zero for less challenging proposals.

  10. Are the students required to work full time on the building of the proposed business?

    Yes. They may not be spending 100 percent of their time every day. But the efforts to build the proposed business will have to be carried on throughout the year.

  11. Can the students invite SMU faculty, staff or outsiders to be part of the team?

    Yes. However, the students should own the majority of the company that they are building. We do not wish to see third parties use this mechanism to employ students as interns or otherwise in their own companies. The student teams should own and manage the day to day operations of the company.

  12. What is the criterion for allocating the incubation space?

    The incubation space is meant for product / service development. Those business proposals that genuinely need space for development will be given priority. There will be a common facility that can be used by all the funded teams for presentations to potential customers and investors.

  13. Can we ask just for the space and not for any dollar investment ?

    Absolutely! You'll still need to put together a business proposal to convince the committee about your need for the space.

  14. What information are we required to furnish to SPRING Singapore as part of the funding requirements?

    1. Bank account for remittance of funding
    2. ROC or ROB information sheet
    3. Quarterly P&L statements
    4. Year-end financial statement

  15. What are some of the obligations on shareholders and directors when running a company?

    The desire to set up a company to pursue your entrepreneurial ambitions is admirable but students are reminded to first familiarize themselves with the obligations imposed on shareholders and/or directors of Singapore incorporated companies in relation to the setting up of such entities, the reporting and compliance obligations imposed under the Singapore Companies Act, and the process to follow in the unfortunate event the business venture is not successful. Students should be aware that there are obviously costs implications in setting-up, running and (if it happens) closing down a business. Students are encouraged to make the effort to find out more about such matters and in this regard and as an initial start, to visit the FAQ section of the Accounting & Corporate Regulatory Authority's website at http://www.acra.gov.sg/faqs/index.

 

Last updated on 27 June, 2007 by SMU BIG.