Corebridge's Neil Orvay finds laissez faire Hong Kong a great place to do business
	Sheryn Hew of HCBN is building a regional business from Hong Kong
	"Mr Lan Kwai Fong" Allan Zeman finds Hong Kong's advantages as compelling as ever

Entrepreneurship is not for the faint-hearted. In Hong Kong's business-friendly environment, there are lots of support for small and medium-sized enterprise (SME) start-ups, but many challenges still remain.

We asked some who have succeeded to share their experience and advice.

Briton Neil Orvay is part of a management team who took over technology company Corebridge in 2003 and turned it into a global operation. Hong Kong was chosen as the firm's Asia Pacific headquarters because of its excellent infrastructure, competitive tax regime and access to Corebridge's target clientele of financial institutions and multinational companies, he said.

"The initial challenge for most entrepreneurs is being brave enough to give up their regular, income-paying job and replacing that with irregular income and the risk of failure. The ones who make that leap are often those who believe in their idea so strongly that failure simply isn't an option," he says.

Attracting capital

"The next challenge is attracting capital. Many people have ideas; what they often lack is the capital to put it into practice. That is why the British Chamber Angels Programme started."
 
Mr Orvay added that while Hong Kong is a very laissez faire place to do business which is great in many ways, he encountered a lack of funding options for start ups and pre-revenue businesses.

"From my personal experience, I found it difficult to find a forum where I could present my business plan. The British Chamber Angels Programme is a much needed scheme for candidates looking for funding, but it will only work if there is a constant flow of ideas coming forward. Hong Kong is a very entrepreneurial city so we hope there is a natural marriage there."

Sheryn Hew, an Australian entrepreneur setting up her own retail chain, agrees securing funding is a major challenge facing all business start-ups. 

"Raising seed funds is an exciting process, but also a scary and lonesome one. It takes a lot of self commitment, passion and confidence," said Ms Hew, who set up her company Hew Corp, Brands Network (HCBN) Ltd earlier this year in partnership with Italian luxury brand, Fabi.

Ideal regional headquarters

Planning to build a regional company selling wholesale and retail high-end Italian leather goods, Ms Hew knew that Hong Kong was the best place for her headquarters. "Hong Kong is a regional hub, an international fashion hub, and an easy place to do business," she said. "It is ideally located for my regional expansion."

Her first Fabi retail outlet opened in Kuala Lumpur on November 28, to be followed by a store in Tokyo. Ms Hew is hunting for a suitable site to open in Hong Kong next year.

Trained at London Business School, Ms Hew had the technical know-how to start her business, but believes that in order to succeed, entrepreneurs must be driven by a true passion for their goal. "Entrepreneurs don't have the infrastructure to compete with the big brands. We overcame this by looking at strategic innovation, doing a lot of focus planning, and trying to think out of the box."

She also says that networking platforms such as the British Chamber's Angels Programme are invaluable for start-ups. "I believe it is crucial to know you are not alone; to meet and be encouraged by other entrepreneurs."

Trustworthy banking sector

Italian entrepreneur Alessandro Pozza set up a wine import business in November 2006, and since June this year, his sales have been increasing by 25 per cent per month. Mr Pozza, who distributes Italy's Santa Margherita wines to high end hotels and restaurants, found opening a bank account was harder than he'd expected.

"The bank kept asking me for extra details. Initially, I found this annoying, feeling they were being overly careful. But then this gave me confidence in the system, as I realised the checks are working," he said.

Mr Pozza finds Hong Kong's accounting and secretarial services to be efficient, and though he now employs two salesmen, retains a hands-on approach by personally dealing with important clients. "I'm Italian, so naturally when buying Italian wine they want to talk to me," he said.

His advice to would-be start ups is to be firm in their commitment. "Anyone who is serious about Southeast Asia has to decide to move to Hong Kong, or else it's not going to work," he says. "It's not enough to just visit from Europe once a month – you're either committed to a place, or you're not."

Can-do spirit prevails

Probably the most famous Canadian entrepreneur in Hong Kong is Allan Zeman, who moved here in 1975 and opened a Lan Kwai Fong restaurant called California. It became so successful he purchased the whole street, and Lan Kwai Fong went on to become a premier food and entertainment district in the city.

Even though he started in business many years ago, Mr Zeman says the can-do spirit of Hong Kong which first attracted him still prevails, allowing Hong Kong to continue its rapid growth rate year-on-year. The other prosperity for Hong Kong is its low tax rate, he added.

"My key advice (for entrepreneurs) would be to come to Hong Kong to set up an office and take advantage of the new possibility that is taking place in China," Mr Zeman said. "As the country continues its rapid expansion, there are many opportunities to benefit new SMEs and entrepreneurs based in Hong Kong, such as Cepa (the closer economic partnership arrangement) and many other incentives."

SMEs around the world can tap into opportunities at the World SME Expo which will be held in Hong Kong from Dec 12-14 (Expo tailors Asian insights for SMEs)

Related links
Corebridge 
Hew Corp, Brands Network (HCBN) Ltd 
Lan Kwai Fong