According to the 2023-2024 Asia-Pacific Small Business Survey conducted by the Australian Society of Accountants, the confidence of small businesses in Hong Kong in business development and the local economy continues to strengthen. 69% of small businesses in Hong Kong expect to achieve revenue growth in 2024, while 73% of respondents anticipate further economic growth this year.
The results show that many small businesses in Hong Kong have benefited from the economic recovery, with 56% reporting revenue growth in 2023. Respondents from Hong Kong stated that expanding into new markets was the most favorable factor for business development in 2023. This intention to explore new markets is expected to continue this year, with 79% of respondents anticipating an increase in overseas sales revenue, significantly higher than the market average of 50%.
The revenue growth of small businesses and market expansion have created more new job opportunities in the employment market. 46% of small businesses in Hong Kong increased their workforce last year, higher than the survey’s average of 32%. The strong intention to recruit is expected to continue this year, with 52% of surveyed companies stating they will increase hiring.
However, the rising costs associated with exploring new markets and local operations have become the biggest obstacle to the development of small businesses last year. The survey indicated that 83% of small businesses sought external funding in 2023, with the most common financing reasons being the purchase of capital assets and support for business growth.
Looking ahead to this year, 89% of companies stated they will definitely or may seek external funding, with offsetting increased expenses being the most common financing reason. 76% of respondents found it easy to obtain external financing in 2023, and 74% of respondents expect this relaxed financing environment to continue this year.
However, the rapid digitization wave has also brought about risks in terms of cybersecurity. 64% of surveyed companies reported that they suffered loss of time or money due to cybersecurity incidents last year, and seven out of ten companies are concerned about the possibility of cyber attacks in 2024. Both of these results rank the highest in the Asia-Pacific market.