Why is the Hong Kong startup ecosystem growing rapidly?
23 December, 2020
There are times when we might feel disappointed and believe that we do not possess any lucky quality to taste success. However, every day is a new chance of accessing numerous opportunities. As you participate in an unbelievable series of startups in Hong Kong, you will realize that this place is much more than the land of diverse culture and rich heritage. Hong Kong is known as the home to the most dynamic and robust startup ecosystem in the world. If you are planning to start a business and succeed, it would be best to create your dream business with the freest economy in the world- Hong Kong.
The Hong Kong Business is proliferating day by day. As reported by the global innovation index 2019, the third most innovative state in southeast Asia, Oceania, and East Asia are Hong Kong. The last year has been phenomenal for the Hong Kong startup ecosystem. It is also due to this growing ecosystem that has caused Hong Kong to enter the list of top 25 startup hubs.
The network of successful businesses in Hong Kong is growing at such a pace that there will be no halt for the startup operators while scaling their business. This place works on all the significant factors to grow the business by developing new lots for entrepreneurs and their businesses on a yearly basis. Therefore, there is no doubt that Hong Kong is one of the leading cities in Asia when it comes to business. But in case you want to enlighten yourself with the facts of this place's startup ecosystem, then give this article a read!
Let's take a look at this place's dynamic startup ecosystem and how it became a business center. Also, the role of the government is helping business owners who are trying to grow their businesses. It would be best if you blanket yourself with this place's essential facts before you take colossal-sized decisions.
Hong Kong's dynamic startup ecosystem
Several factors affect the growth and initiation of a business. Location is the first thing every business person thinks about before setting up the business. Every entrepreneur wants the best site so that more and more customers are attracted to their business. An important factor to keep in mind while searching for the location is that all the regulations to set up the business have to be easy for the foreign entrepreneur and local business person. In case you set up the company in Hong Kong, nothing will stop you from growing your business.
Hong Kong is considered one of the best cities in order to establish and run a business. The city scores high on factors that matter to businesses. Here are the main factors that help every business operator to fight every obstacle.
- The city has a Strategic location
- Pro-business environment
- Productive workforce
- A stable economic and political environment, which is a must when it comes to business development
- Attractive tax regime
- World-class infrastructure for your and your employee comfort and brand image
- An effective legal system
All the factors mentioned above make Hong Kong's startup ecosystem thriving, and the number of startups continues to grow rapidly. As per the 2018 InvestHK survey for the startup in Hong kong, there is a significant growth of the startups and investors. It was noted that a total of 2625 startups had been launched, 9548 employees have been appointed across 13756 workstations. Now, imagine how this city is improving and supporting new opportunities so that budding business can grow. Thanks to the substantial number of networks of accelerators, incubators, co-work spaces, and even profound, diverse community partner support systems that help this place grow.
Another essential factor that adds to the growth of business development in Hong Kong is the ease of doing business. A myriad of opportunities are offered by Hong Kong for the people who are doing or are willing to start up a new business. With a perfect location to launch foreign companies, Hong Kong offers the below-mentioned features to boost the power of doing business easily.
- It offers a Trustworthy economy
- Tax-friendly jurisdiction
- International market
- A productive legal system
All these factors allow a great impact when the company is being set up or is already running.
How does the government support the startups?
Now that you are aware of the essential factors that affect the Hong Kong ecosystem and how it has gained a place in the list of the globe's growing economies. Let us know how the city's government acts as a major support system for young entrepreneurs. What kind of support will they offer you?
It is challenging to run a startup; you need to assemble many resources along the way, which will help to bring more benefits for the organization. But when you have a business in Hong Kong, you don't have to worry about this. The Hong Kong government is fully committed to supporting startups in order to help realize their vision and carry their business to the next level. The government has specifically designed a budget in 2019 to help support enterprises, Safeguard jobs, and stabilize the economy. Also, there are many funding schemes available to support your business. Here are a few schemes proposed by the government of Hong Kong. Let us dive deep into them.
#1 Create Hong Kong
Create Hong Kong is the first and foremost funding scheme of Hong Kong's Government that you need to know. This scheme generally harmonizes the policies of the government and makes efforts to give birth to creative industries. The scheme was formed on 1 June 2009 under the Commerce and Economic Development Bureau to lead champions. It was designed in order to drive the development and growth of the creative economy in Hong Kong. The government provides resources for promoting and speeding up the development of creative industries in Hong Kong. Also, the government works closely with the trade to boost the growth of creative industries.
#2 HKTDC SME Centre
Being deliberately situated at the Hong Kong Convention and Exhibition Center, the HKTDC SME Center gives you all the assets you require to work together. Fundamentally, it fills in as an all in one resource for all HKTDC to offer far reaching administrations in fare advertising to little and medium-sized endeavors (SMEs).
While opening a business, everyone looks for a one-stop-shop to gather all the resources and information; this government scheme could be your best choice. Being separated in the 16,000 sq ft over two levels, it has a centralized resource and interactive service centers. These places can be used as the library, meeting areas, function rooms, state-of-the-art facilities, and business support services.
Regardless of whether you are maintaining a setup business or ready to begin another SME startup, it would be best if you had all the assets at your place. All in all, where do you discover every one of those? Obviously, this scheme will help you access reliable business contacts, up-to-date business information on overseas markets, and the latest industry trends. Other than this, it also organizes multiple workshops, activities related to networking, and business matching schemes throughout just for young professionals to gain new business contacts and grow their business.
#3 Hong Kong Productivity Council
The next government scheme that you need to know is the Hong Kong productivity council. Indeed, it is a multi-disciplinary association that supports productivity and greatness by incorporating help across Hong Kong firms' value chain. The fundamental points behind this plan are to-
- Accomplish more successful use of assets
- Increment worldwide seriousness
- Improve the value-added substance of items and administrations
If you are planning to set up a techno startup, this government scheme will bring wonders. Being an innovative digital community with a group of computerized content occupants and innovation, Cyberport attempts to upgrade the ICT center in Hong Kong. In other words, it deals with a mission to set itself up as an information and communications technology (ICT) center in the Asia-Pacific area.
They are dedicated to encouraging the neighborhood economy by various methods. It incorporates the sustaining and accelerating ICT industry, new companies, and business people through essential activities and partnerships. It also drives collaboration to pool resources and create business opportunities and accelerate ICT adoption through strategic initiatives and partnerships.
#5 Invest Hong Kong
The last government scheme that would assist you with developing your business is Invest Hong Kong. In case you are not living in Hong Kong, still desire to dispatch the business, this plan would be your most ideal decision. It works with abroad and Mainland business people, SMEs, and multinationals that wish to set up an office or grow their current business in Hong Kong.
Along these lines, trust it, this scheme would carry different chances and approaches to scale your business, regardless of whether you are a resident of Hong Kong or not. It offers free guidance and administrations to help organizations from the arranging stage directly through their business's launch and extension.
Now that you know all about the Hong Kong startup ecosystem, how and why is it growing rapidly. In case you are planning to launch your business, choose Hong Kong as your business location. For this city, the sky's the limit as the city offers you a plethora of opportunities and resources for your business growth.
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