small and medium-sized entreprises (smes) & hong kong · © d’evénitif version 2: 2014...

© D’Evénitif version 2: 2014 October http://www.devenitif.com

Small and Medium-Sized Entreprises (SMEs) & Hong Kong

A brief guide on resources for SMEs in Hong Kong


Statistics on SMEs in Hong Kong

Small and Medium-Sized Entreprises (SMEs) & Hong Kong serves the

purpose of advising start-ups and SMEs on developing the business in Hong

Kong. Against the backdrop of low costs on establishing a company, low

company and individual taxes and a favourable trading environment, we have

seen the coming into being of start-up and SME cultures in Hong Kong.

Up to March 2014, SMEs account for 98% of business units and more

than 47% of total employment excluding civil service in Hong Kong. About

320,000 SMEs have been established in Hong Kong (Source: Census and Statistics

Department)



0% 5% 10% 15% 20% 25% 30% 35% 40%

Manufacturing

Mining, Energy & Construction

Import/Export and Wholesale

Retail

Transportation and Logistics

Accommodation and Food Services

Information and Communications

Financing and Insurance

Real Estate

Professional and Business Services

Social and Personal Services

Distribution of SMEs in Hong Kong

Source: Census and Statistics Department, March 2014



Similar to 2013, the sectors where you find the most SME players are

trading, retail, professional, business and personal services. The first two sectors

alone account for more than 50% of SMEs in Hong Kong whereas in mining,

quarrying, energy, waste management and construction, they account for only less

than 1% of commercial activities.

SMEs in Hong Kong, no doubt, contribute to a significant extent, the

economic vitality of the city and they are the result of the attractive business

environment that has been created through low taxes, well-regulated and

transparent trade regulations, double taxation agreements with many countries,

various financial subsides schemes for SMEs, internationally-acclaimed trade fairs

for different industries, products and services and the prevailing business matching

platforms, not to mention the simple company registration procedures.


Major Funding Schemes for SMEs

Microfinance Scheme The microfinance scheme offers three types of loans: - Micro Business Start-up loan

- Self-employment loan

- Self-enhancement loan The scheme aims to assist those who are interested in: - starting their own businesses

- becoming self-employed

- achieving self-enhancement through training, upgrading of skills or obtaining

professional certification For details, please check the website of the Hong Kong Mortgage Corporation Limited: Microfinance Scheme

http://www.hkmc.com.hk/eng/pcrm/ourbusiness/mf.html
































SME Financing Guarantee Scheme

The Scheme aims to help SMEs and non-listed enterprises obtain loans from participating lenders to

enhance their productivity and competitiveness. Guarantee coverage is up to 70%. Starting from 31

May 2012, the scheme provides up to 80% guarantee protection to the approved eligible loan

facilities.

(Applications are accepted until 28 February 2015)

Eligibilities: - Eligible enterprises must have business operation in Hong Kong operation for at least one year on

the date of guarantee application

- Business registration in Hong Kong under the Business Registration Ordinance (Chapter 310)

- Good loan repayment record

- Listed companies, lending institutions and affiliates of the lender are not eligible for the Scheme

For details, please check the website of the Hong Kong Mortgage Corporation Limited: SME Financing Guarantee Scheme

https://www.smefund.tid.gov.hk/english/emf/emf_objective.html

http://www.hkmc.com.hk/eng/ops/ourbusiness/sme.html

http://www.hkmc.com.hk/eng/ops/ourbusiness/sme.html



SME Export Marketing Fund

The SME Export Marketing Fund (EMF) aims to help SMEs expand their businesses

through participation in export promotion activities Eligibilities: - Business has been registered in Hong Kong

- Any manufacturing business which employs fewer than 100 persons

- Any non-manufacturing business which employs fewer than 50 persons

- Trade fairs/exhibitions and business missions are organised by bona fide

organisations/companies and directly relevant to the business of the EMF participants

- The applicant must be an exhibitor at the trade fair/exhibition in question or a

member of a particular business mission For details, please check the website of the Trade and Industry Department: SME Export Marketing Fund




































SME Loan Guarantee Scheme

The SME Loan Guarantee Scheme aims to help SMEs secure loans from the participating

lending institutions for acquiring business installations and equipment and meeting

working capital needs of general business uses. Eligibilities: - Registered under the Business Registration Ordinance (Chapter 310) and

with substantive business operation in Hong Kong

- An SME under the definition of the Government of Hong Kong Special Administrative Region.

For details, please check the website of the Trade and Industry Department: SME Loan Guarantee Scheme

https://www.smefund.tid.gov.hk/english/sgs/sgs_objective.html


































SME Development Fund

The SME Development Fund provides financial support to non-profit-distributing

organisations to implement projects which aim to enhance the competitiveness of Hong

Kong's SMEs Eligibilities: - Non-profit-distributing organisations

- Applicants are either statutory organisations or organisations registered under the

laws of the Hong Kong Special Administrative Region

- Projects which are or will be in receipt of other public funding support will not be considered

For details, please check the website of the Trade and Industry Department: SME Development Fund

https://www.smefund.tid.gov.hk/english/sdf/sdf_intro.html
































CreateSmart Initiative

The Create Smart Initiative was launched in June 2009 with a funding injection of HK$300 million. Starting

from 24 May 2013, the initiative also provides funding support for the Design-Business Collaboration Scheme

(DBCS) which provides matching grants for design/business collaboration projects to encourage SMEs to use

design services.

Eligibilities: - Locally registered institutions/organisations with projects that nurture a pool of creative human capital

which will form the backbone of the creative economy

- Projects facilitating start-ups and development of creative establishment

- Projects generating demand for innovation and creativity and expanding local market size for creative industries

- Projects promoting creative industries on the Mainland and overseas to help explore outside markets

- Projects developing creative clusters in the territory to generate synergy and facilitate exchanges

- Projects fostering a creative atmosphere within the community and promoting Hong Kong as Asia’s

creative capital

For details, please check the website of the Create Hong Kong: CreateSmart Initiative

http://www.createhk.gov.hk/en/service_createsmart.htm










































Innovation and Technology Fund

The Innovation and Technology Fund (ITF) aims to encourage and assist companies to

upgrade the technological level and introduce innovative ideas to their business.

Under ITF, there are several different funding schemes: - The Innovation and Technology Support Programme (ITSP)

- Guangdong-Hong Kong Technology Cooperation Funding Scheme (TCFS)

- The General Support Programme (GSP)

- GSP - Internship Programme

- GSP - Patent Application Grant

- The University-Industry Collaboration Programme (UICP)

- The Small Entrepreneur Research Assistance Programme (SERAP) For details, please check the website of the Innovation and Technology Commission: ITF

https://www.itf.gov.hk/l-eng/about.asp









































Innovation and Technology Fund - The Innovation and Technology Support Programme (ITSP)

ITSP supports midstream/downstream research and development projects undertaken

mainly by universities, R&D Centres, industry support organisations, professional bodies

and trade and industry associations.

For details, please check the website of the Innovation and Technology Commission: ITSP

https://www.itf.gov.hk/l-eng/ITSP.asp









































Innovation and Technology Fund - Guangdong-Hong Kong Technology Cooperation Funding Scheme (TCFS)

TCFS aims to enhance the level of collaboration on R&D between organisations in Hong

Kong and Guangdong Province. Projects funded by the TCFS will have to demonstrate an

element of Guangdong/Hong Kong cooperation (e.g. collaboration between research

institutes and enterprises in Guangdong, Shenzhen and Hong Kong).

For details, please check the website of the Innovation and Technology Commission: TCFS

https://www.itf.gov.hk/l-eng/TCFS.asp









































Innovation and Technology Fund - The General Support Programme (GSP)

GSP is a programme under the ITF catering for non-R&D projects that contribute to the

upgrading and development of our industries as well as fostering an innovation and

technology culture in Hong Kong.

Projects to be supported under GSP may include conferences, exhibitions, seminars,

workshops, promotional events, studies and surveys, youth activities, events or projects

to support platform building / upgrading of industry, etc. In general, the GSP will not

support projects for promotion of products/services of a specific commercial entity.

For details, please check the website of the Innovation and Technology Commission: GSP

https://www.itf.gov.hk/l-eng/GSP.asp









































Innovation and Technology Fund - GSP Internship Programme

Under the Internship Programme, organisations undertaking R&D projects funded by

ITF can recruit graduates from local universities as interns to assist in the R&D projects.

For details, please check the website of the Innovation and Technology Commission: GSP Internship Programme

http://www.itf.gov.hk/l-eng/GSP-IP.asp













































Innovation and Technology Fund - GSP Patent Application Grant

The Grant aims to encourage local companies and inventors to capitalise their intellectual work.

Eligibilities: - All locally incorporated companies

- Hong Kong permanent residents or Hong Kong residents permitted to remain in Hong

Kong for not less than 7 years who have never owned any patents in any countries or territories before

- (Individual applicants) The applicant must be the sole inventor or one of the joint inventors of the invention.

- (Company applicants) The inventor(s) of the invention shall be a directly related party/parties to the applicant company

For details, please check the website of the Innovation and Technology Commission: GSP Patent Application Grant

http://www.itc.gov.hk/en/funding/pag.htm















































Innovation and Technology Fund - The University-Industry Collaboration Programme (UICP)

UICP aims to stimulate private sector interest in R&D through leveraging the knowledge and resources

of universities.

Under the UICP, there are 3 schemes: - Teaching Company Scheme

- Matching Grant for Joint Research

- Industrial Research Chair Scheme Eligibilities:

The application has to be submitted with a private company engaging in commercial activities as the

applicant and a local university as the partner. The company has to be a company incorporated in

Hong Kong under the Companies Ordinance and has substantial connection to Hong Kong.

For details, please check the website of the Innovation and Technology Commission: UICP

https://www.itf.gov.hk/l-eng/UICP.asp









































Innovation and Technology Fund - Small Entrepreneur Research Assistance Programme (SERAP)

SMEs in technology can apply for this fund to develop products and services with

technology component and business potential.

Eligibilities: - Company incorporated in Hong Kong under the Companies Ordinance (Cap. 32)

- Less than 100 employees in Hong Kong

- Not a large company

- Not a subsidiary of or significantly owned/controlled by a large company

For details, please check the website of the Innovation and Technology Commission: SERAP

https://www.itf.gov.hk/l-eng/SERAP.asp









































Hong Kong Science and Technology Parks Corporation (HKSTPC) Incubation Programmes

Three different incubation programmes – Incu-App, Incu-Tech, and Incu-Bio – are

custom-made for start-ups involved in web and mobile technology, technology and

biotechnology respectively. The main objective is to encourage and promote innovation-

based entrepreneurship by providing relevant assistance and support.

For details, please check the website of HKSTPC

http://www.hkstp.org/en-US/Services-Programmes/Incubation-Programme/Overview.aspx






























Cyberport Creative Micro Fund (CCMF)

The Cyberport Creative Micro Fund (CCMF) Scheme is a seed fund set up to encourage

innovation and creativity by sponsoring high potential creative and innovative start-up

projects or business concepts in ICT-related areas. A cash grant will be awarded to the

successful applicants in a 6-month project period for proof of concepts and for developing

prototype products.

There are 2 types of CCMF: the Hong Kong Programme, and the Cross-Border

Programme(s)

For details, please check the website of the Cyberport

http://www.cyberport.hk/en/about_cyberport/our_5_centres/entrepreneurship_centre/about_ec_cyberport_creative_micro_fund
































Cyberport ICT Incubation Programme

The Cyberport Incubation Programme supports the development of the Hong Kong ICT

industry by providing incubated companies with access to advanced facilities and

resources, support in business development, financing and hiring of graduate interns, as

well as entrepreneurship and technology training.

For details, please check the website of the Cyberport
































Hong Kong Trade Development Council (HKTDC)

The HKTDC organises internationally-renowned trade fairs, provides market

intelligence via its Research Department and offers targeted business matching services.

Besides exploring overseas emerging markets on behalf of Hong Kong SMEs, the HKTDC

also helps local SMEs build brands on the Chinese mainland via its “Style Hong Kong”

shows that bring fashion and other consumer items to Chinese consumers. In the last

three years, 13 shows have been organised in 1st and 2nd tier mainland cities such as

Guangzhou, Qingdao, Beijing and Nanjing, attracting more than 3.5 million Chinese

consumers. The Hong Kong Trader magazine keeps SMEs well informed of market

information.

The HKTDC organises about 35 trade fairs a year that bring business to Hong

Kong and benefit SMEs both here and abroad. In 2012-13 the fairs attracted 683,479

buyers and 33,851 exhibitors, up 1.2 and 3.3 per cent respectively over the previous year.

Three of our fairs are the largest of their kind in the world, 10 are the largest in Asia.
















In 2012-13, the HKTDC led SME delegations to South East Asian countries

such as Myanmar, Indonesia, Malaysia and Vietnam. Visit was paid to Latin American

countries to explore business opportunities for SMEs in Hong Kong. Lifestyle Expo was

organised in Jakarta for the promotion of consumer goods from Hong Kong there.

Regarding the market in China, Style Hong Kong was held in China to promote fashion

products, various consumer products and food. Hong Kong designs are encouraged to

showcase their works in the Design Gallery which keeps expanding in China.

HKTDC SME Centre

At the HKTDC SME Centre, a China Business Service Advisory team provides

free one-on-one business consultative service focused on doing business in China. It

serves also as a networking and business-matching platform where SMEs can have free

access market and trade information. Seminars, conferences and workshops are held at

the SME Centre to help SMEs grow their business.
















World SME Expo

On a yearly basis the World SME Expo is held as a platform of different

services and business opportunities geared to the needs of SMEs. At the Expo, SMEs are

offered the opportunities to explore the franchise businesses, get the latest global and

China market information, access various SME support services such as SME financing,

IT and e businesses, operational, government and institutional support. Free business

advisory services and practical workshops are provided.

For details, please check the website of the HKTDC

http://www.hktdc.com/































InvestHK

InvestHK works closely with overseas and Mainland entrepreneurs, SMEs and

multinationals that wish to set up an office or expand their existing business in Hong Kong. They offer

free advices and services to support companies from the planning stage right through to the launch

and expansion of their business. Since 2000 they have assisted approximately 3,000 companies. At

InvestHK, dedicated sector specialists provide the latest business information, business facilitation

support, as well as introduction to service providers.

They serve clients from different sectors:

- Business and Professional Services

- Consumer Products

- Creative Industries

- Financial Services

- Information and Communications Technology

- Innovation and Technology

- Tourism and Hospitality

- Transport and Industrial















InvestHK

StartmeupHK

StartmeupHK is an initiative by InvestHK which aims at boosting the city’s

potential as the premier startup hub in Asia. The growing number of co-working spaces,

variety of startup events and extensive amount of government funding schemes are all

part of this evolving ecosystem. Launched in June 2013, StartmeupHK intends to provide

startups and entrepreneurs looking to start or expand their business in Hong Kong with

all the essentials.

The one-stop portal features a crossroad of events happening in Hong Kong,

news from the startup scene, government support for SMEs and the latest news in the

startup community. StartmeupHK also has a global competition called StartmeupHK

Venture Programme for high impact, scalable and innovative ventures, attracting the best

startups to Hong Kong by showcasing the advantages of the city. This pilot programme

received 384 entries from 39 economies in 2013.















InvestHK

Feedback from SMEs

SMEs find InvestHK’s services particularly helpful in the following areas:

provision of market and industry specific information, assistance with company

registration and licensing procedures, introduction to potential partners, suppliers,

professional service providers and government departments, and provision of networking

opportunities.

For details, please check the website of InvestHK



http://www.investhk.gov.hk/index.html





























Feedback

If you have any feedback please feel free to contact us at

[email protected]

















small and medium-sized entreprises (smes) & hong kong · © d’evénitif version 2: 2014...

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