Business scheme, with the help of mentor partners, helps entrepreneurs avoid pitfalls of starting a business
It takes more than just money to help young entrepreneurs launch their businesses, says a group that has supported 27 start-ups by people aged 18 to 35 and claims a 95 per cent success rate.
As well as an interest-free loan of up to HK$100,000, Youth Business Hong Kong provides mentorship, networking and professional advice and closely monitors the venture.
The scheme's secretary-general Louisa Lau Wai-yi said the high success rate was due to the non-monetary support given to the young entrepreneurs.
'The biggest challenge is of course the lack of funds,' Ms Lau said. 'But other factors are whether they have people advising them on how to deal with business-related problems and if they have a good network so they will get business opportunities referred to them.'
The scheme, set up by the Hong Kong Federation of Youth Groups last year, chose 27 projects from 260 applicants. The successful applicants had to start paying back the loan in instalments after six months. Most had maintained a stable revenue and had been able to make the repayments.