Hong Kong, Apr 24, 2014 - A recent Hong Kong Trade Development Council (HKTDC) survey reveals that 15 per cent of respondents are new entrepreneurs or would-be entrepreneurs, up eight percentage points over a similar survey conducted in 2011.
"Start-ups Taking off: 2014 Report on Youth Entrepreneurship in Hong Kong," done jointly by the HKTDC and the Hong Kong Federation of Youth Groups (HKFYG), was conducted from November 2013 to February 2014 and divided into two parts. In the first part, 1,000 Hong Kong people, aged 18-35, were randomly contacted to get an estimation of new entrepreneurs and would-be entrepreneurs and their characteristics; in the second part, some 200 entrepreneurs who have started a business in the last three years were interviewed.
Results of the first part revealed that the proportion of new entrepreneurs was five per cent, up two percentage points over the previous survey. The intention of Hong Kong individuals to start a business was also up - to 10 per cent from four per cent in 2011.
Resource Smart
Speaking at today's press conference, Daniel Poon, the HKTDC's Principal Economist (Global Research), summarised the results of the second part of the survey, noting several trends among new entrepreneurs: "First, they make good use of resources. Around 30 per cent of new entrepreneurs in the survey are engaged in retailing, but most either consign their merchandise or display them by leasing short-term booths in shopping malls and department stores to avoid paying steep shop rentals. Moreover, the respondents generally say they are adept at using online platforms, social networks and mobile apps to promote business," said Mr Poon.
Prudent Investors
"The second characteristic is their small start-up capital to avoid taking out loans. In the survey, 80 per cent have start-up capital of HK$200,000 or less; 20 per cent started with HK$10,000 or less. Ninety-six per cent of the respondents said their start-up capital came from themselves and their partners, while only about 10 per cent borrowed from banks or finance companies. The majority said they would only invest further or increase expenditure after they had earned enough profit," noted Mr Poon.
IT Popular
Starting a business based on IT is a major trend, according to Mr Poon. In the survey, about 12 per cent of the respondents started this way, and many of their businesses are related to developing mobile apps. "The cost of starting a business in IT is very low," said Mr Poon. He added that, "other than an entrepreneur's own knowledge, it doesn't require significant resources. So IT provides a big advantage for young entrepreneurs."
Socially Responsible
The survey also revealed that new entrepreneurs generally have a strong sense of social responsibility. Many respondents said that, in addition to the pursuit of wealth, a main motivation for starting a business was to bring desirable changes to society.
Entrepreneur Day Open to Public
Also speaking at the press conference, HKTDC Director of Product Promotion Ralph Chow pointed out that entrepreneurs have different needs. He added that "HKTDC Entrepreneur Day is one of the key events through which the HKTDC supports entrepreneurs, and it's open and free to the public." This year's Entrepreneur Day will be held, 2-3 May, at the Hong Kong Convention and Exhibition Centre (HKCEC), offering business start-up information, market opportunities and a range of activities.
The sixth edition will feature more than 230 organisations, up 80 per cent over last year. "Help Start-ups Take Off" is the two-day event's theme. Specialised areas will include Franchise Operator, Business Brokerage, Online Start-up, Social Enterprises and Micro-Enterprises. There will also be zones for fund-raising platforms, incubation funds and support services. Start-ups can also look for partners or investors at the show.
Fair Features
Highlights will include the new Cross-Matching Pavilion. Sponsored by CreateHK, organised by the Innovative Entrepreneur Association and implemented by the Hong Kong Productivity Council, the pavilion will spotlight 80 illustrators and graphic, product and multimedia designers. Returning are the popular "Entrepreneur Arena" and "Fund & Mentor" sessions. In the show's Micro-Enterprise Zone, 20 small companies will present their products and services. During the event, 20 seminars, workshops and exchange activities will be held; successful entrepreneurs and experts from various industries will speak on topics ranging from franchising to cross-industry collaboration and shared working spaces.
Public Voting
"Entrepreneur Arena" will spotlight those intending to start a business within the year, presenting their business plans to judges and an audience. This year, 23 individuals will take part, with more than a thousand audience members casting their votes online. Paul Pong, Managing Director of Pegasus Fund Managers Ltd, and Vincent Wong, founder and CEO of Solution-on-Wheels, will be the star judges.
Photo Download: http://filesharing.tdc.org.hk/hktdc/download.php?fid=_phppqm15B
Dates/Hours
2 May: 10:30am to 6:30pm; 3 May: 10am to 6pm
Venue: Hall 1 DE, HKCEC
Website: www.hktdc.com/eday
Contact:
HKTDC
Corporate Communication Department
Joe Kainz
Tel: +852 2584 4216
Email: joe.kainz@hktdc.org