CPA Australia: Hong Kong small businesses tip record overseas sales and innovation

• Hong Kong’s small companies have excessive expectations for progress.
• A document nine-in-10 small companies anticipate to innovate in 2023.
• Income from abroad gross sales and innovation will help restoration and long-term progress.

HONG KONG SAR – Media OutReach – 16 April 2023 – Extra of Hong Kong’s small companies anticipate to develop this yr than at some other time since 2011, after bouncing again from COVID-19. They’ve document expectations for innovation and abroad gross sales in 2023, based on one of many world’s largest skilled accounting our bodies.

Pushed by enhancements in Hong Kong’s economic system, CPA Australia’s newest Asia-Pacific Small Enterprise Survey exhibits 66 per cent of native small companies anticipate to develop this yr. This annual survey collected views from 4,280 small companies in 11 Asia-Pacific markets together with 312 respondents from Hong Kong.

The reopening of borders and improved economic system resulted within the highest proportion of Hong Kong small companies (74 per cent) anticipating to develop abroad gross sales on document. The annual survey started in 2009. This consequence exceeded all different surveyed markets.

Rising confidence additionally led to a different record-busting consequence, with 89 per cent planning to innovate within the subsequent 12 months.

“This optimistic sentiment might be partly attributed to the restoration from the low-base of the previous three years,” stated Cliff Ip, Deputy Divisional President of CPA Australia – Better China.

Small companies in Hong Kong bounced again to 2018 progress ranges. Greater than half (56 per cent) grew in 2022. The 2023 outlook is upbeat, with 65 per cent anticipating financial progress.

“Bolstered by authorities reduction measures, small companies in Hong Kong overcame a very difficult interval and recovered shortly within the second half of 2022. People who maintained innovation and expertise on the coronary heart of their enterprise and sought exterior help weathered COVID-19 the very best and are most definitely to thrive in 2023.”

“As an export-oriented providers economic system, the federal government is seeking to drive tourism and entice international funding. Hong Kong’s full reopening presents thrilling alternatives for small companies. They’ll increase by introducing new services. Serving to that growth are authorities incentives to faucet into rising markets, particularly international locations in ASEAN and the United Arab Emirates.”

Enterprise optimism this yr can be prompting a brand new recruitment wave. Greater than half (58 per cent) anticipate to extend headcount this yr, up from 26 per cent in 2022.

“The federal government’s Employment Help Scheme inspired employers to retain and rent employees, with 54 per cent of Hong Kong small companies rising worker numbers final yr. As Hong Kong returns to normality, companies are extra keen to rent employees. That is an apparent restoration sign. Nonetheless, market competitors for expertise has grow to be fierce and lots of might want to depend on expertise to handle employees shortages.”

Income from on-line gross sales grew considerably in 2022. Seventy-eight per cent of Hong Kong’s small companies earned greater than 10 per cent of income from e-commerce, up 25 proportion factors from 2021.

Eighty-four per cent obtained greater than 10 per cent of gross sales by means of digital fee applied sciences, comparable to Octopus, Alipay and PayMe. This was up from 59 per cent in 2021. Over six-in-10 stated their expertise funding improved profitability.

“The federal government’s HK$10,000 e-consumption voucher scheme was a serious incentive to encourage digital transformation,” Davy Leung, Deputy Chairperson of CPA Australia’s Small and Medium Enterprises Committee – Better China, stated.

An easing financing situation is one other constructive issue that helped Hong Kong small companies handle their liquidity within the tough time. Final yr, 74 per cent sought exterior funds, largely from banks and authorities grants. Seven-in-10 discovered it straightforward to entry these exterior funds.

“Greater than 1 / 4 of native small companies nominated authorities grants or funds as their fundamental supply of exterior finance final yr. Amongst these respondents, 92 per cent discovered it straightforward to entry such funding. This means that authorities measures, such because the SME Financing Assure Scheme and people beneath the Anti-Epidemic Fund, have been nicely designed.

“A document variety of small companies (91 per cent) are planning to hunt exterior funds this yr. Small companies have benefitted from a greater financing atmosphere however they shouldn’t rely solely on short-term measures launched by the federal government. Sustaining liquidity and enhancing cashflow are important, particularly when prices are rising.”

Searching for exterior recommendation is one other noticeable attribute. Ninety-three per cent of Hong Kong’s small companies sought recommendation in 2022, with most having consulted with a financial institution or finance firm and IT consultants.

“Applied sciences, enterprise situations and rules can change shortly. Skilled recommendation is necessary to small companies to place them heading in the right direction to beat challenges.”
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About CPA Australia

CPA Australia is likely one of the largest skilled accounting our bodies on the planet, with greater than 172,000 members in over 100 international locations and areas, together with greater than 22,200 members in Better China. CPA Australia has been working in Hong Kong since 1955 and opened our Hong Kong workplace in 1989. Our core providers embody schooling, coaching, technical help and advocacy. CPA Australia supplies thought management on native, nationwide and worldwide points affecting the accounting career and public curiosity. We interact with governments, regulators and industries to advocate insurance policies that stimulate sustainable financial progress and have constructive enterprise and public outcomes. Discover out extra at cpaaustralia.com.au