Family businesses in China and Hong Kong less aggressive when it comes to growth, says PwC study
Economic climate getting worse,with 75 per cent of Hong Kong businesses citing market conditions as their biggest challenge for the next 12 months
The economic climate has hurt Chinese family businesses and many are becoming more conservative about their future, a Pricewaterhouse Coopers study has found.
Only 73 per cent of Chinese family businesses recorded sales growth in 2016, still higher than the global average of 64 per cent, but down from 84 per cent in the most recent study in 2014, according to the survey released on Thursday.
Chinese and Hong Kong family businesses are now more cautious, with 65 per cent of businesses aiming to grow steadily rather than aggressively this year, up on 2014’s 41 per cent who were aiming for steady growth.
“People are more conservative this time. In the last report we saw that they were more optimistic about the future, they could see faster growth,” said PwC Hong Kong entrepreneurial group assurance partner Kitty Chung.
“Last time, a lot of people were more aggressive and [thought] they could grow faster. Now it’s more toward the steady category.”
A major factor in the changing attitude was the economic environment, with market conditions seen as the key challenge for the next year by 75 per cent of Hong Kong businesses surveyed.