Hong Kong Leader to Consider More SME Help Amid Rising Business Closures
Elevating Support for SMEs in Hong Kong
Hong Kong’s leader has expressed intentions to enhance measures for supporting small and medium-sized enterprises (SMEs) amidst a concerning trend of rising business closures.
Key Insights from Leadership Discussions
During an annual policy address upcoming next week, Chief Executive John Lee Ka-chiu voiced the administration's focus on backing SMEs through various innovative strategies.
- Lee acknowledged the completion of programs such as the Hong Kong Shopping Festival aimed at bolstering recognition of local brands.
- His team will consider valuable insights obtained during talks with SME representatives regarding their unique challenges.
Understanding the Business Landscape
As of June, Hong Kong boasts approximately 360,000 SMEs, comprising more than 98% of businesses in the region.
- These enterprises employ over 1.2 million individuals, which is about 44% of the city’s workforce excluding civil servants.
- Continuing trends indicate a growing number of businesses shutting down: 88,232 in 2022, 94,002 in 2023, and 76,707 within the first eight months of 2024.
Financial Burdens and E-Commerce Adaptation
A manufacturer highlighted the burdens of transitioning to an increasingly digital retail environment, emphasizing that the government’s support measures like the BUD Fund have provided essential initial assistance.
This fund allows companies to engage in e-commerce initiatives with substantial financial backing, fostering growth and expansion.
Future Directions and Potential Impact
Lee plans to broaden governmental assistance to help SMEs develop competitiveness and tap into new markets brought forth by significant initiatives like the Belt and Road Initiative.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.