Deals done at the successful Business Networking Area last year are set to be repeated at World SME Expo 2007
	The British Chamber's Christopher Hammerbeck welcomes submissions to the ‘angels' business start-up programme

Foreign small and medium-sized enterprises (SMEs) looking at global expansion will be privy to the secrets of Hong Kong's success at the region's flagship networking event, World SME Expo.

Organised by the Hong Kong Trade Development Council, the annual event draws over 30,000 attendees to grow their business, leveraging Hong Kong's robust economy and its unrivalled position as the gateway to China. World SME Expo will be held at Hong Kong Convention and Exhibition Centre from December 12-14.

This year's event has a focus on Asian strategy for SMEs. Expert speakers will help foreign SMEs to understand the changes in China's complex investment environment, and how to identify a market niche. Successful SMEs will share their Asian experience. Tailored services such as business matching put visiting SMEs in touch with the right people to begin or expand their Greater China network.

Driving a strong economy

SMEs have long been recognised as the driving force of Hong Kong's strong economic track record (Success embedded in entrepreneurial spirit). As of March 2007, Hong Kong has some 276,000 SMEs constituting more than 98 per cent of business establishments, according to government figures. SME staff account for half of total employment in the private sector, representing some 1.2 million jobs.

For foreign SMEs expanding into the global market place, Hong Kong is a trusted platform. 

Tim Harcourt, Chief Economist of the Australian Trade Commission in Sydney, says SMEs have "everything to gain" by expanding globally, citing a recent International Business Wales survey that found that the top one third of Australian SMEs are engaged in active offshore investment.

Hong Kong and China both rank in the top five destinations for Australian SMEs expanding globally, with Hong Kong an important entrepot.

Unbeatable edge for China

"Hong Kong has an unbeatable edge for China," Mr Harcourt says. "It combines the professionalism and sophistication of a mature market with the openness of an old world trading hub, creating a very entrepreneurial environment for small businesses. Hong Kong offers the best of both worlds in many ways. Even with the rise of China, over 4,900 Australian businesses still export to Hong Kong and regard it as important gateway."

Chris Lowsley, a China Business Adviser from UK Trade & Investment Southeast, agrees Hong Kong provides SMEs with a solid platform into China.

Low risk entry option        

"I have been visiting Hong Kong regularly on business for over 30 years and am still amazed at how this dynamic city can adjust to adversity, re-invent itself and meet the local and global economic and political challenges of the day," said Mr Lowsley, who will this month lead an annual business mission to Hong Kong and China.

For those new to China, Hong Kong still offers a lower risk entry option for foreign SMEs, he said.

"With the growth in virtual and serviced offices there is no reason now why British SMEs cannot take on the challenges of the Greater China marketplace from a cost effective base in Hong Kong, which fully understands the needs of western businesses. 

"Each year at least one or two of our mission members have decided to set up base here, and the excellent support from HKTDC and Invest Hong Kong has been an important factor in these decisions."

Range of industry supports                                                                                           

Government and industry support of SMEs is a key factor in Hong Kong's ongoing achievement as the world's freest economy. At the APEC Conference in July this year Joseph Lai, Director-General of Trade and Industry, explained the government's "market leads, government facilitates" principle.

"We believe that, ultimately, it is the SMEs' own efforts which determine their success or otherwise. In supporting the SMEs, the government's role is to maintain a favourable business environment, including a simple and clear tax regime with low tax rates, good infrastructure, a versatile and industrious workforce, a culture which encourages the application of technologies, and a robust legal system which protects intellectual properties," Mr Lai said.

He also outlined a range of supports including various SME Funding Schemes, introduced in 2001/02. Total government expenditure in these schemes currently stands at HK$2.2 billion (US$283 million), with more than 48,000 SMEs obtaining cash grants or guarantees.

In addition, through its Support and Consultation Centre for SMEs (SUCCESS), the Trade and Industry Department provides SMEs with free, reliable and practical business information and consultation services. Many SUCCESS programmes, like the Business Advisory Service and SME Mentorship Programme, represent collaboration with the private sector.

Angels to the rescue

Initiatives such as the newly launched Baker Tilly Hong Kong Business Angels Programme further underscore the business community's support of start-ups and entrepreneurs.

This British Chamber of Commerce initiative gives new business ventures an opportunity to present their ideas to a panel of potential investors, or ‘Angels', with a view to securing funding.
 
Shortlisted applicants will be given advice and assistance by a sub-committee of experienced professionals and successful entrepreneurs. Applicants should be looking to secure between HK$1.5 million (US$200,000) and HK$15.5 million (US$2 million) and can be anyone with a business idea or existing business that needs to expand. The sub-committee will consider ideas from all sectors.
 
Christopher Hammerbeck, Executive Director of the British Chamber, says SME members had told the chamber of their difficulty in finding funding for a new company. "With our 1,000 plus membership we are in the perfect position to find potential investors and to provide a forum to match them to entrepreneurs with exciting ideas," he said.

Related links
British Chamber of Commerce
Invest Hong Kong