According to a recent “Hong Kong SME Business Condition Survey” released by the Hong Kong Small and Medium Enterprises Association and Tenglong Youth Chamber of Commerce, nearly 70% (69.9%) of small and medium-sized enterprises have experienced a decrease in their business turnover compared to pre-pandemic levels, with less than 5% (4.4%) reporting an increase in turnover. Over 70% (71.8%) of the interviewed companies agree that the shift in Hong Kong consumers’ purchasing power to the north has had a significant impact on their business turnover.
The survey also revealed that nearly 80% (77.8%) of the interviewed business owners stated that they would not lay off employees, with 21.6% pledging not to lay off or reduce salaries, 35.9% indicating they would try their best to avoid layoffs or pay cuts, and only 0.7% mentioning a high likelihood of layoffs.
Facing post-pandemic economic restructuring, the trend of Hong Kong residents shopping across the border, trade disputes, and other operational challenges, over 75% of the interviewed employers (75%) expressed their intention to choose “upgrading and transformation” as a response. More than 50% of employers are considering raising product or service prices, while 35% are looking to seize opportunities to expand their businesses.
In the midst of these challenging circumstances, small and medium-sized enterprises in Hong Kong are actively seeking ways to adapt and thrive, exploring various strategies to navigate the evolving business landscape and ensure their sustainability in the face of economic uncertainties and shifting consumer behaviors.