Hong Kong small businesses’ confidence in growth at five-year low, poll finds

Confidence in growth among small businesses in Hong Kong for 2019 is at a five-year low, according to a survey conducted by professional accounting body CPA Australia.

The annual poll, conducted between November 16 and December 11 last year, covered 3,607 businesses with less than 20 employees in Hong Kong, China, Taiwan, Malaysia, Vietnam, Indonesia, Philippines, Singapore, Australia and New Zealand.

Increasing uncertainty arising from the US-China trade war has rattled small businesses in the city, with 52 per cent of respondents saying the conflict will have a negative impact on their business this year. Confidence in growth has also fallen from about 80 per cent to 71 per cent among mainland Chinese small business owners.

About 34 per cent, however, also reported the trade war is likely to have a positive affect on their performance. “There’s a possibility some businesses are using this as an opportunity to grow their domestic market,” said Gaven Ord, manager of business and investment policy at CPA Australia.

“With the tariffs, products manufactured and produced in China are now more competitive than products from the US within China,” he added.

The annual survey also found the percentage of businesses generating more than 10 per cent of their income from online sales was down across the region in 2018. Sales in Hong Kong were down by 10 per cent from 54 per cent in 2017.