Hong Kong SMEs Seek Financing and Market Strategies for Growth, Look to Chief Executive for Support

Survey reveals funding and marketing tactics as major growth obstacles for SMEs in Hong Kong

Hong Kong and Greater Bay Area's SMEs are counting on Chief Executive John Lee to introduce additional assistance schemes in his policy speech.

Numerous proprietors of small to medium-sized businesses in Hong Kong and South Guangdong are keen to broaden their operations within Asian markets, as indicated by a study conducted by the Singaporean bank, DBS. Securing funds is one of their major worries.

Small and Medium-sized Enterprises (SMEs) located in Hong Kong have expressed a preference for expanding their customer base primarily in the nine cities comprising the Greater Bay Area in Guangdong, followed by other cities within mainland China, and then Singapore, according to survey findings. For businesses operating in the bay area, Hong Kong and Singapore were named as the leading options.

Capitalizing on the supply chain, cutting down on operational expenses and tapping into a vast consumer base were the primary incentives for their growth choices, as per the bank's report. This was following a survey conducted in September involving 200 owners and executives of small and medium-sized enterprises.

"A strong policy structure is crucial for enabling small and medium-sized enterprises (SMEs) to tackle the current market difficulties," stated Lareina Wang, the executive director and SME banking chief at DBS Hong Kong. "The findings from our research highlight the determination and aspiration of SMEs, especially their focus on broadening their reach throughout Asia."

Over 80% of Small and Medium Enterprises (SMEs) in Hong Kong and bay area cities are either actively strategizing or currently involved in broadening their business in Asia. However, regional growth isn't as straightforward as it seems, according to DBS. Challenges such as legal, tax, and compliance matters, in addition to cultural and language disparities and lack of knowledge about new markets, are significant obstacles.