Hiring and innovation surge despite slower growth among small businesses in Singapore

• Small businesses expand workforce and invest in innovation amid softer growth.
• Technology investments are paying off.
• Cyber resilience remains a vulnerability.

SINGAPORE, April 6, 2026 /PRNewswire/ -- Small businesses in Singapore are pressing ahead with hiring and innovation plans despite softer growth and ongoing economic uncertainty, according to the latest annual Asia-Pacific Small Business Survey by global professional accounting body CPA Australia.

The survey found that 44 per cent of Singapore's small businesses reported growth in 2025, below the survey average of 63 per cent and down from 51 per cent in 2024. Against the backdrop of weaker growth, the findings point to underlying resilience and medium-to-long-term confidence.

Last year, 54 per cent of small businesses increased employee numbers, the highest among the 11 markets surveyed and well above the survey average of 36 per cent. While growth expectations remain relatively subdued with only 53 per cent expecting to grow in the next 12 months, hiring intentions remain strong, with 63 per cent anticipating an increase in 2026.

The drive for innovation continues to strengthen. In a sharp rise from 23 per cent in 2025, 46 per cent of small businesses report that they will introduce a new product, service or process in 2026, the highest result across all surveyed markets. This underscores a strong emphasis on innovation-led growth in the years ahead.

CPA Australia Singapore Divisional President, and Digital Business and Risk Services Leader at PwC Singapore, Greg Unsworth, said: "Despite weaker sentiment, Singapore's small businesses are prioritising investment in talent and innovation. This suggests they are positioning themselves to seize opportunities for future growth once conditions improve."

Technology adoption has demonstrated strong returns. In 2025, 68 per cent of small businesses reported improved profitability from technology investments, a significant increase from 45 per cent in 2024 and above the survey average.

At the same time, reliance on online sales declined. The proportion of businesses generating more than 10 per cent of revenue from online sales fell from 63 per cent in 2024 to 47 per cent in 2025. This finding indicates that small businesses are moving beyond basic e-commerce adoption and are leveraging technology to improve operational efficiency, manage cost and boost profitability rather than focusing solely on online sales expansion.

CPA Australia Singapore Divisional Deputy President, and Managing Partner at Baker Tilly, Joshua Ong, said: "The survey findings align with Singapore's Digital Enterprise Blueprint and the Government's push to strengthen productivity, innovation capability and workforce upgrading. Programmes such as SMEs Go Digital and Productivity Solutions Grant are clearly reflected in small businesses' behaviour. We are seeing a shift from basic digital adoption to more advanced, productivity-enhancing use of technology."

Singapore remains the easiest market for small businesses to access external finance, with 72 per cent reporting that it was easy or very easy access to obtain funding, the highest among the surveyed markets.

Ong added: "Favourable financing conditions have likely enabled small businesses to increase investment in people, innovation and digital capabilities despite cost pressures."

Cyber resilience, however, remains an area of concern. The survey revealed that 44 per cent of small businesses lost time and/or money due to cybersecurity incidents in 2025. These findings echo the recent Business Technology Survey by CPA Australia, which highlighted that while digital adoption is accelerating among Singapore businesses, cybersecurity maturity remains a key vulnerability.  

Unsworth said, "Singapore's small businesses are operating in an increasing complex and digitally connected environment, and that brings both opportunities and risks. By strengthening cyber governance and risk management frameworks, small businesses can safeguard productivity gains and build greater customer confidence, paving the way for a safer, smarter and more resilient future."

About the survey

CPA Australia's 17th annual Asia-Pacific Small Business Survey was conducted among small business owners/senior managers during November and December 2025 to identify the characteristics of successful small businesses across the region. The findings for the survey come from 4,166 small businesses in 11 markets. From the commencement of the survey in 2009, we have surveyed over 50,000 small businesses across the region. These include Australia, Mainland China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Vietnam.

About CPA Australia

CPA Australia is Australia's leading professional accounting body and one of the largest in the world. We have more than 176,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. A CPA is a Certified Practising Accountant. More at cpaaustralia.com.au

SOURCE CPA Australia