Hong Kong small and medium-sized enterprises (SMEs) have more confidence in the city's overall economy than in their own businesses, a survey by express delivery service provider UPS shows. Hong Kong entrepreneurs rate themselves the second-lowest in Asia in terms of profitability outlook for this year, followed by Japan, even as they rate the city's economic growth the third-highest after the mainland and India, according to the survey of 1200 SMEs in 12 Asian countries. 'It means the SMEs in Hong Kong feel they cannot share the prosperity in Hong Kong as much as the large companies,' K.K. Leung, UPS general manager for Hong Kong and Macau, said yesterday. High labour costs and rental expenses hit such local enterprises the most, said the city's 100 respondents, with annual sales ranging from US$500,000 to US$10 million. Hong Kong ranked first in rental burden among Asian countries and third in labour costs after South Korea and Singapore. About 40 per cent of the SMEs were dissatisfied with their supply chain management, while 61 per cent were deploying money and time-saving measures, ranking the city 10th.