Auzzi Shopping

Men's Weekly

.

CPA Australia: Hong Kong small businesses tip record overseas sales and innovation

  • Written by Auzzi Shopping
  • Hong Kong's small businesses have high expectations for growth.
  • A record nine-in-10 small businesses expect to innovate in 2023.
  • Revenue from overseas sales and innovation will support recovery and long-term growth.
HONG KONG SAR - Media OutReach - 16 April 2023 - More of Hong Kong's small businesses expect to grow this year than at any other time since 2011, after bouncing back from COVID-19. They have record expectations for innovation and overseas sales in 2023, according to one of the world's largest professional accounting bodies.

Media Photo.jpg
From left to right: Mr Cliff Ip FCPA (Aust.) - Divisional Deputy President 2023, CPA Australia Greater China, Mr Davy Leung FCPA (Aust.) - Deputy Chairperson of SME Committee, CPA Australia Greater China


Driven by improvements in Hong Kong's economy, CPA Australia's latest Asia-Pacific Small Business Survey shows 66 per cent of local small businesses expect to grow this year. This annual survey collected views from 4,280 small businesses in 11 Asia-Pacific markets including 312 respondents from Hong Kong.

The reopening of borders and improved economy resulted in the highest percentage of Hong Kong small businesses (74 per cent) expecting to grow overseas sales on record. The annual survey began in 2009. This result exceeded all other surveyed markets.

Growing confidence also led to another record-busting result, with 89 per cent planning to innovate in the next 12 months.

"This optimistic sentiment can be partly attributed to the recovery from the low-base of the past three years," said Cliff Ip, Deputy Divisional President of CPA Australia – Greater China.

Small businesses in Hong Kong bounced back to 2018 growth levels. More than half (56 per cent) grew in 2022. The 2023 outlook is upbeat, with 65 per cent expecting economic growth.

"Bolstered by government relief measures, small businesses in Hong Kong overcame a particularly challenging period and recovered quickly in the second half of 2022. Those that maintained innovation and technology at the heart of their business and sought external support weathered COVID-19 the best and are most likely to thrive in 2023."

"As an export-oriented services economy, the government is looking to drive tourism and attract foreign investment. Hong Kong's full reopening presents exciting opportunities for small businesses. They can expand by introducing new products and services. Helping that expansion are government incentives to tap into emerging markets, especially countries in ASEAN and the United Arab Emirates."

Business optimism this year is also prompting a new recruitment wave. More than half (58 per cent) expect to increase headcount this year, up from 26 per cent in 2022.

"The government's Employment Support Scheme encouraged employers to retain and hire staff, with 54 per cent of Hong Kong small businesses increasing employee numbers last year. As Hong Kong returns to normality, businesses are more eager to hire staff. This is an obvious recovery signal. However, market competition for talent has become fierce and many will need to rely on technology to manage staff shortages."

Revenue from online sales grew significantly in 2022. Seventy-eight per cent of Hong Kong's small businesses earned more than 10 per cent of revenue from e-commerce, up 25 percentage points from 2021.

Eighty-four per cent received more than 10 per cent of sales through digital payment technologies, such as Octopus, Alipay and PayMe. This was up from 59 per cent in 2021. Over six-in-10 said their technology investment improved profitability.

"The government's HK$10,000 e-consumption voucher scheme was a major incentive to encourage digital transformation," Davy Leung, Deputy Chairperson of CPA Australia's Small and Medium Enterprises Committee – Greater China, said.

An easing financing condition is another positive factor that helped Hong Kong small businesses manage their liquidity in the difficult time. Last year, 74 per cent sought external funds, largely from banks and government grants. Seven-in-10 found it easy to access these external funds.

"More than a quarter of local small businesses nominated government grants or funds as their main source of external finance last year. Among these respondents, 92 per cent found it easy to access such funding. This implies that government measures, such as the SME Financing Guarantee Scheme and those under the Anti-Epidemic Fund, were well designed.

"A record number of small businesses (91 per cent) are planning to seek external funds this year. Small businesses have benefitted from a better financing environment but they shouldn't rely solely on short-term measures introduced by the government. Maintaining liquidity and improving cashflow are essential, especially when costs are increasing."

Seeking external advice is another noticeable characteristic. Ninety-three per cent of Hong Kong's small businesses sought advice in 2022, with most having consulted with a bank or finance company and IT consultants.

"Technologies, business conditions and regulations can change quickly. Professional advice is important to small businesses to put them on the right track to overcome challenges."
Hashtag: #CPAAustralia #Business #Economics #SME

The issuer is solely responsible for the content of this announcement.

About CPA Australia

CPA Australia is one of the largest professional accounting bodies in the world, with more than 172,000 members in over 100 countries and regions, including more than 22,200 members in Greater China. CPA Australia has been operating in Hong Kong since 1955 and opened our Hong Kong office in 1989. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at

Today's Features at Auzzi

Why Flyscreens Are a Must-Have for Every Sydney Home: Installation Tips and Benefits

Sydney is known for its warm climate, coastal breezes, and outdoor lifestyle. But with the open windows and doors that come with summer living, there’s one major downside: insects. From ...

Top Bathroom Renovation Ideas for Sydney Homes

Renovating the bathroom not only changes the appearance of your house but also its functionality and ambience. Whether you want a full renovation or a spot touch-up, the proper design sele...

What is First Five Forever and How Can You Nourish a Tiny Brain?

Targeted at children aged 0-5 years, First Five Forever is a Queensland State Government initiative designed to support early childhood development. With the key message being, ‘Talk, r...

A Comprehensive Guide to Stress-Free Solar and Battery Integration

Solar energy has become a leading alternative in a world where the demand for sustainable energy is growing. Although using solar to generate energy is wonderful, combining it with battery s...

Why Container Domes Are the Ultimate Solution for Affordable Housing

Imagine residing in a house that is not only reasonably priced but also distinctive and environmentally responsible. Presenting container domes, a cutting-edge housing option that is revolut...

Step-by-Step Guide to Setting Up Your Free Online Store on MarketTram

MarketTram is a Sydney-based platform that lets you publish unlimited free regular ads, which makes it a low-risk way to start selling. The site focuses on simple listing, local trade and ...

Mining and Infrastructure Surveying Services in Western Australia: What to Know

Western Australia runs on big projects. Iron ore in the Pilbara, gold across the Goldfields, rail expansions and new energy hubs all rely on precise spatial data. Surveying underpins that ...