Many owners of small and medium-sized enterprises (SMEs) in Hong Kong and southern Guangdong province are eager to expand their businesses in Asian markets, according to a survey by Singaporean banking group DBS. Access to financing ranks among their biggest concerns.
Hong Kong-based SMEs said they preferred to seek more customers in the nine cities in Guangdong that form the Greater Bay Area, other mainland cities and Singapore in that order, the survey showed. Those in the bay area cited Hong Kong and Singapore as the top choices.
Taking advantage of the supply chain, reducing operational costs and accessing a large pool of consumers were the key motivating factors in their expansion decisions, according to the bank, which surveyed 200 SME owners and decision-makers in September.
“A robust policy framework is essential for empowering SMEs to navigate today’s market challenges,” said Lareina Wang, executive director and head of SME banking at DBS Hong Kong. “Insights from our survey underscore the resilience and ambition of SMEs, particularly their priority to expand across Asia.”
More than 80 per cent SMEs in Hong Kong and bay area cities are actively planning or currently engaged in Asian expansion efforts. Yet, regional expansion is easier said than done, DBS said. Legal, tax, and compliance issues, as well as cultural and language differences and unfamiliarity with new markets, emerged as notable hurdles.
