Winning against the odds: Hong Kong’s fertile ground for start-ups
It is not just a perception but reality that Hong Kong is enjoying a sudden growth in its start-up ecosystem and a swelling in entrepreneurial spirit. The start-up ecosystem has snowballed by close to 300 per cent in the past five years, according to a new study by Google and Chinese University (CUHK) Centre for Entrepreneurship.
It is not just a perception but reality that Hong Kong is enjoying a sudden growth in its start-up ecosystem and a swelling in entrepreneurial spirit.
The start-up ecosystem has snowballed by close to 300 per cent in the past five years, according to a new study by Google and Chinese University (CUHK) Centre for Entrepreneurship.
Growth includes physical hubs and venues, start-up accelerators and incubators, funding providers and university support, creating a widening network of fellow entrepreneurs, co-working spaces and government programmes.
The number of co-working places grew from one in 2009 to 22 so far this year, while the number of accelerators and incubators has jumped from six to 16.
Knowledge providers have more than doubled from 14 to 37, and funding providers have almost tripled from 16 to 42, according the survey which polled 612 entrepreneurs and a panel of 12 local experts, part of the 400 different sources the survey drew on.
The private and public sectors have recognised the importance of entrepreneurial studies and knowledge exchange. As a result, direct funding from industry to local universities has increased by 35 per cent since 2009, and collaboration programmes have trebled.
However, despite the encouraging picture which has emerged, young entrepreneurs face serious, and sometimes, crippling problems.
Close to two-thirds of experts believe that the major handicap for Hong Kong entrepreneurs is inadequate accessibility to financial resources. Nearly nine out of 10 entrepreneurs agree, saying their major source of seed capital is self-funding, while half say it is their only source. Banks provide just 6 per cent of funding, the report adds.
Another problem local entrepreneurs face is a risk-averse society, with pressure from parents and friends to get a stable job instead of taking the risk of setting up a company.
Start-ups are a young person’s world. The report says that more than a quarter of start-up entrepreneurs are under 25, but that only 28 per cent are female. More than half have a BA, and most of those graduated from a local university.
Overall, given that institutional players, the private sector and universities are becoming more involved, young people remain enthusiastic about the future of entrepreneurial spirit and their chances of developing profitable companies.
