THE CPA AUSTRALIA
ASIA-PACIFIC
SMALL BUSINESS
SURVEY 2015
HONG KONG REPORT
2 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
LEGAL NOTICE
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ISBN: 978-1-921742-71-2
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First published 2016
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3 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
OVERVIEW
CPA Australia Asia-Pacific Small Business Survey 2015 is the sixth in a series of annual reports measuring small
business confidence, the drivers of confidence, technology uptake and access to finance by small businesses. The
data is compared across the eight economies included in this survey and over time.
In total, 2932 participants completed the survey, including 510 from Australia, 610 from Mainland China, 265 from
Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from
Vietnam.
The online survey was conducted with a random sample of small business owners/managers between 24
September and 14 October 2015. The sample was obtained through panel providers. To qualify for the survey,
participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a
CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20
employees.
4 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
SUMMARY OF HONG KONG RESULTS
Focus on e-commerce and exporting is boosting the confidence and competiveness of
Hong Kong’s small business sector.
CPA Australia’s Asia-Pacific Small Business Survey reveals that a strong focus by many Hong Kong small
businesses on e-commerce, social media and exporting is contributing to a more positive outlook by the sector.
The focus on e-commerce, social media and exporting also means that many of Hong Kong’s small businesses are
well placed to outcompete their less nimble and tech-savvy competitors and remain competitive against rivals from
fast-growing neighbouring economies who are taking big steps to improve their competitiveness.
More than half of the respondents (52.0 per cent) expect Hong Kong’s economy to grow in the next 12 months, a
12.6 percentage point increase from the 2014 survey results. This jump in economic confidence has flowed through
to confidence in their own business, with 55.1 per cent of Hong Kong businesses expecting to grow in the next 12
months, up from 39.0 per cent in 2014. This, however, is still well below the survey average of 70.7 per cent of
small businesses expecting to grow in the next 12 months. It is also below the results for the mainland of China
(77.7 per cent) and Singapore (56.5 per cent).
There is no doubt that the survey results show that economic and small business sentiment in Hong Kong for 2016
has turned positive. Further, Hong Kong’s strong focus on e-commerce and exporting and continued strong
economic growth in the mainland of China (the Mainland) supported by policies such as the Belt and Road
Initiative, show that there is much to be positive about with regard to Hong Kong and its small business sector in
2016 and beyond.
The sector is not without its challenges, however. The main challenge is increasing costs, particularly rent, with
Hong Kong businesses being the most likely of the markets surveyed to nominate this as the factor most
detrimental to their business in the past 12 months.
However, the very strong focus on e-commerce means that many Hong Kong businesses are responding well to
this challenge. Investing in e-commerce platforms makes good business sense as it may reduce their need for floor
space, particularly in high rental locations, and increases the chance of them gaining access to the fast-growing ecommerce market in the Mainland without necessarily needing a physical presence there.
With Hong Kong’s tourism and retail sectors going through a weak period, efforts to reach customers directly
through e-commerce platforms also show that many Hong Kong small businesses have the right strategy in place,
and that this should be a positive contributor to long-term growth.
Another familiar challenge for Hong Kong small businesses is what appears to be an overreliance on external
finance. As in previous years, Hong Kong small businesses continue to seek external finance even when business
conditions are not working in their favour. They are also more likely to seek external finance to cover increasing
expenses, increasing rent and increasing borrowing costs than small businesses from other markets. These issues
should ideally be addressed through improved cash flow management and cost control rather than increased
borrowings.
While the strong focus on e-commerce and exporting is positive, a stronger focus on innovation would make Hong
Kong small businesses even more competitive and likely to grow. As the survey results show, businesses that are
innovating are significantly more likely to be growing and creating jobs.
5 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Hong Kong small businesses are less likely than the survey average or small businesses in the Mainland to
innovate through the introduction in the next 12 months of a new product, service or process that is unique to Hong
Kong or the world (17.7 per cent for Hong Kong small businesses compared with the survey average of 22.0 per
cent and 31.6 per cent of small businesses from the Mainland).
Putting aside the need for a stronger focus on innovation, Hong Kong small businesses are largely competitive and
well placed to grow in the coming years as:
 a large percentage expect to grow their e-commerce presence (42.6 per cent of Hong Kong small businesses
expect to grow their e-commerce presence to a large extent in the next 12 months compared with the survey
average of 32.2 per cent, the Shanghai reading of 29.5 per cent and the Singapore reading of 19.4 per cent)
 many expect to grow revenue from overseas markets (22.3 per cent of Hong Kong small businesses expect
their revenue from overseas markets to grow strongly in the next 12 months compared with the survey average
of 19.1 per cent, Singapore at 17.7 per cent and Shanghai at 10.9 per cent)
 a very large percentage use social media in their business (93.2 per cent of Hong Kong small businesses use
social media in their business compared with the survey average of 81.4 per cent and well ahead of Singapore’s
reading of 79.6 per cent and Australia’s reading of 50.2 per cent).
The more positive small business outlook and a focus on some of the key drivers of future growth and
competiveness are contributing to the sector creating new jobs, with 32.8 per cent of Hong Kong small businesses
forecasting they will increase employee numbers in the next 12 months. This number could be higher with a
stronger focus on innovation.
Other results from the survey
Demographics
 Hong Kong small business owners are younger than the survey average (63.4 per cent are under 40 compared
with the survey average of 53.2 per cent).
 There is a strong correlation between younger business owners and those businesses that expect to grow, sell
online, use social media for business purposes, and innovate through the introduction of new products,
processes or services.
Improved business management
 Hong Kong small businesses were slightly less likely to state that improved business management had a major
positive impact on their business in the past 12 months than the survey average (20.4 per cent compared with
the survey average of 25.4 per cent).
 Cost control was also a major positive influence on Hong Kong businesses; however, increasing costs remain a
major detrimental issue for Hong Kong businesses.
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Access to finance
 For those Hong Kong small businesses that sought finance in the past 12 months, access to finance became
easier than in the previous 12 months (43.5 per cent found access to finance easy or very easy in this survey
compared with 29.9 per cent in the last survey).
 These easier financing conditions and the more positive economic environment contributed to an increase in the
number of businesses seeking external funds (78.1 per cent required external funds in the past 12 months
against 69.9 per cent that required external funds in the last survey).
 While growth remains the most important reason for accessing finance, Hong Kong businesses were also the
most likely to access external funds for covering increasing expenses.
7 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
MAJOR FINDINGS FOR HONG KONG
Innovation is a key driver of growth, job creation and exporting; therefore more
Hong Kong small businesses could benefit from a greater focus on innovation.
With small businesses with an e-commerce presence being more likely
to be growing and creating jobs, Hong Kong’s strong focus on ecommerce is a distinct competitive advantage for its business and the
economy.
With the survey results showing a strong connection between
exporting, and growth and jobs, Hong Kong’s focus on exporting is
a competitive advantage for its small businesses and the economy.
With the survey results showing a strong connection between
social media use and business growth, the near universal usage
of social media by Hong Kong’s small businesses is a competitive
advantage.
Reflecting more positive business conditions, nearly one-third of
Hong Kong small businesses plan to increase their headcount in
2016.
Hong Kong small business confidence in the growth prospects for the
local economy and their own business is up in 2016.
Access to finance for Hong Kong small businesses became easier over the past
12 months.
8 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
KEY SURVEY FINDINGS FOR HONG KONG
INNOVATION
Innovation1 is a key driver of growth, job creation and exporting. More Hong Kong small
businesses could therefore benefit from a greater focus on innovation.
Small businesses that in the next 12 months will definitely introduce a new product, service or
process that is new to their market or the world 2
Indonesia
45.8%
China
31.6%
Malaysia
29.0%
Vietnam
26.1%
Hong Kong
17.7%
Singapore
New Zealand
Australia
1
15.2%
6.8%
5.1%
Innovation, for the purpose of the survey, is taken to be the introduction of a new product, service or process that is unique to a market or the
world.
2
All data for China excludes Hong Kong, which is shown separately.
9 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
The relationship between innovation and jobs creation, business growth and exporting
Percentage that expect to
definitely introduce a
product, service or
process that is new to
their market or the world
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly in the next 12 months
NOT expecting to grow their revenue from overseas sales in the next 12 months
10 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Innovation is a core driver of business growth and competitiveness, and while a reasonable number of Hong Kong
small businesses are undertaking innovation, more could be done.
With the survey results showing innovative businesses are significantly more likely to be growing, exporting and
creating jobs, it is easy to see why innovation and technology is one of the key economic areas the Hong Kong
government seeks to further develop. As a recent OECD paper on innovation stated, ‘in the long run, it is difficult to
imagine growth without innovation’.
The OECD estimates that innovation can contribute up to 50 per cent of economic growth depending on the
3
economy, the level of economic development and the phase of the economic cycle. Such an estimate highlights
why the Hong Kong government is absolutely right to have innovation as a core policy focus.
Businesses are also more likely to definitely expect to undertake innovation through the introduction in the next 12
months of a new product, service or process that is unique to their market or the world if they:
 have a business owner/manager aged under 40
 have between 5 and 19 staff
 are from the banking, finance and insurance sector, or the manufacturing sector.
KEY FINDING
Innovation is a core driver of economic growth, business growth, job creation and exporting. We suggest that
more Hong Kong small businesses should place a greater emphasis on innovation and take advantage of the
support for innovation offered by the Hong Kong government.
3
OECD Innovation Strategy: An Agenda for Policy Action, OECD Publishing, Paris, 2015, p. 4
11 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
E-COMMERCE
With small businesses with an e-commerce presence being more likely to be growing
and creating jobs, Hong Kong’s strong focus on e-commerce is a distinct competitive
advantage for its business and the economy.
Small business that generated revenue from online sales – a comparison between Hong Kong,
Shanghai and Singapore
100%
Shanghai
90%
80%
Hong Kong
70%
60%
Singapore
50%
Small business that intend to grow their e-commerce presence to a large extent in next 12
months – a comparison between Hong Kong, Shanghai and Singapore
50%
Hong Kong
40%
30%
Shanghai
Singapore
20%
10%
12 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
The relationship between e-commerce and business growth, jobs creation and exporting
Percentage that expect to
grow their e-commerce
presence to a large
extent
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly over the next 12 months
NOT expecting to sell into overseas markets in the next 12 months
13 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Small businesses from Hong Kong are leading their peers and competitors from Singapore, Australia and New
Zealand on generating revenue from online sales. This advantage is only likely to grow as small businesses from
Hong Kong are significantly more likely to expect to grow their e-commerce presence in the next 12 months than
businesses from almost all other markets in the survey including Shanghai and Singapore.
With the survey results showing that small businesses that are selling online and seeking to grow their e-commerce
presence are significantly more likely to be growing and creating jobs, it is easy to see why the Hong Kong
government has innovation and technology as a key economic area for further development.
The focus on e-commerce should also assist Hong Kong small businesses reduce the impact that rent has on their
business, as e-commerce could allow them to take up less floor space, particularly in high rental locations. It could
also allow them to better connect with customers, particularly in the Mainland, without necessarily having a physical
presence there.
With Hong Kong’s retail and tourism sectors going through a weak period, such a focus on e-commerce may be an
important way to help businesses in those sectors to manage through this difficulty and place them in a good
position for future growth.
While online sales are not relevant for all businesses, when you combine the data that shows a strong connection
between e-commerce and growth, growing digital penetration and literacy of customers, high rent and weaknesses
in some sectors of the Hong Kong economy, the results suggest it would be wise for all businesses to investigate
establishing and growing their e-commerce presence.
Small businesses are also more likely to earn income from online sales where:




they have between 5 and 19 staff
the business has been established for less than 21 years
the respondent is aged under 40
the business is from the manufacturing sector.
KEY FINDING
The high degree of focus on e-commerce by Hong Kong’s small businesses is a key competitive advantage for
those businesses and the economy. The focus on e-commerce should also allow Hong Kong’s small businesses
to better control rent costs and make it easier for them to connect with customers in the Mainland.
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SMALL BUSINESS AND EXPORTING
With the survey results showing a strong connection between exporting, and growth and
jobs, Hong Kong’s focus on exporting is a competitive advantage for its small
businesses and the economy.
Small businesses expecting revenue from overseas sales to grow strongly in the next 12 months
– a comparison between Hong Kong, Shanghai and Singapore
25%
Hong Kong
20%
Singapore
15%
10%
Shanghai
5%
0%
The relationship between exporting, and jobs creation and business growth
Percentage that expect
their revenue from
exporting to grow
strongly
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
15 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
Hong Kong’s small businesses are the second most likely of the markets surveyed to expect to strongly grow their
revenue from exporting in the next 12 months. With the survey results showing that small businesses that are
exporting are more likely to be growing and creating jobs, this focus is a strong competitive advantage for Hong
Kong’s small businesses and the broader economy.
While such an external focus does come with risks, including foreign exchange risks and the potential for
downturns in key markets, the advantages of exporting over focusing on the domestic market are significant. A
focus on the domestic market limits growth potential and increases the business’s risk exposure should the local
economy slow. It also means that the business may be less exposed to competitive pressures, which the survey
results show may have a negative impact on innovation and growth. Further, the business may be less exposed to
new ideas from other markets, which may also negatively impact innovation.
For Hong Kong’s small businesses to maintain this competitive advantage, more businesses should be looking to
export, not only to the Mainland but to other fast-growing economies such as Indonesia and Vietnam.
Small businesses are also more likely to expect strong growth in their earnings from overseas in the next 12
markets if:




the business is from the manufacturing sector
the businesses has between 5 and 19 employees
the respondent is aged under 50
the business has been established for less than 21 years.
KEY FINDING
With Hong Kong’s small businesses being more likely to focus on exporting than nearly all other markets, this is
a competitive advantage for its businesses and the economy. With a strong connection between exporting and
growth and jobs, more Hong Kong small businesses should consider exporting as part of their business strategy.
16 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
SOCIAL MEDIA
With the survey results showing a strong connection between social media use and
business growth, the near universal usage of social media by Hong Kong’s small
businesses is a competitive advantage.
Small businesses that used social media in their business – a comparison between Hong Kong,
Shanghai and Singapore
100%
90%
Shanghai
Hong Kong
80%
Singapore
70%
60%
With the survey results showing a connection between social media use for business purposes and business
growth, the very strong uptake of social media amongst Hong Kong’s small businesses gives them a competitive
advantage over businesses from Singapore, New Zealand and Australia where the number of small businesses
using social media is much lower.
With customers being increasingly likely to seek to communicate and transact with businesses via social media, a
robust social media presence should enhance a small business’s ability to attract, retain and transact with
customers. It may also enhance their brand reputation and assist them to grow their business.
Those that use social media use it for a variety of purposes including communicating with existing customers,
promoting their business to potential customers, and selling their products or services.
Small businesses are significantly less likely to be using social media for business purposes where:
 the respondent is aged 50 or over
 the business has been established for over 20 years
 the business has four or fewer staff.
KEY FINDING
With small businesses using social media being more likely to grow, the large-scale adoption of social media by
Hong Kong’s small businesses is a competitive advantage that should help generate future growth.
17 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
JOBS AND SMALL BUSINESSES
Reflecting more positive business conditions, nearly one-third of Hong Kong small
businesses plan to increase their headcount in 2016.
Small businesses that increased employee numbers in the past 12 months – a comparison
between Hong Kong, Shanghai and Singapore
50%
Shanghai
40%
30%
Hong Kong
20%
Singapore
10%
Small businesses that plan to increase employee numbers in the next 12 months – a comparison
between Hong Kong, Shanghai and Singapore
50%
Shanghai
40%
30%
Hong Kong
Singapore
20%
10%
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Relationship between jobs creation and business growth, innovation, exporting and e-commerce
Percentage that expect to
increase employee
numbers in the next 12
months
BUSINESS GROWTH
Expecting to grow in the coming 12 months
NOT expecting to grow in the coming 12 months
INNOVATION
Definitely expecting to introduce a new product, service or process unique to their
country or the world
NOT expecting to introduce a new product, service or process unique to their country
or the world
EXPORTING
Expect to grow export revenue strongly
NOT expecting to sell into overseas markets
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E-COMMERCE
Expect to grow their e-commerce presence to a large extent
NOT expecting to grow their e-commerce presence
The jump in the number of Hong Kong businesses that are expecting their business to grow in 2016 from 2015 is
flowing through to jobs, with 32.8 per cent of Hong Kong’s small businesses planning to increase employee
numbers in the next 12 months.
Other factors contributing to this healthy reading of jobs growth is the strong focus on e-commerce and exporting
by many of Hong Kong’s small businesses.
While Hong Kong’s small businesses are significantly less likely to be creating jobs than businesses from
Indonesia, Vietnam and the Mainland, they are more likely to do so than Singaporean, Australian and New Zealand
small businesses.
Over the next 12 months, businesses that expect to increase employee numbers are also significantly more likely
to:
 intend to significantly increase their e-commerce presence
 strongly grow their revenue from overseas sales
 innovate through definitely introducing a new product, service or process.
Small businesses are also more likely to expect to increase employee numbers over the next 12 months if:
 the business is in the manufacturing, accommodation or food services industries
 the business has between 5 and 19 staff
 the respondent is aged under 40.
KEY FINDING
A stronger focus on innovation should lead to more Hong Kong small businesses increasing their headcount.
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BUSINESS AND ECONOMIC CONDITIONS
Hong Kong small business confidence in the growth prospects for the local economy
and their own small business is up in 2016.
Small businesses that grew over the past 12 months – by market4
Indonesia
57%
Vietnam
34%
63%
China
26%
70%
Malaysia
8%
55%
Hong Kong
14%
51%
Singapore
12%
49%
New Zealand
9%
41%
Australia
15%
32%
13%
Grown A Little
Grown Strongly
Small businesses that expect their business to grow in the coming 12 months, 2009 to 2015 – by
market
100%
90%
Vietnam
80%
Mainland China
Singapore
70%
New Zealand
Malaysia
60%
Indonesia
Hong Kong
50%
Australia
40%
30%
2009
4
2010
2011
2012
2013
All data for China excludes Hong Kong, which is shown separately.
2014
2015
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Small businesses that expect their local economy to grow over the next 12 months, 2011 to 2015
– by market
100%
90%
80%
Australia
70%
Hong Kong
60%
Malaysia
Indonesia
New Zealand
50%
Singapore
Mainland China
40%
Vietnam
30%
20%
2011
2012
2013
2014
2015
Just over half of Hong Kong’s respondents (52.1 per cent) expect Hong Kong’s economy to grow in 2016, a 12.7
percentage point increase from their forecast for 2015. This positivity is expected to flow through to business
growth, with 55.1 per cent of Hong Kong small businesses expecting their business to grow in the next 12 months,
a 16.1 percentage point jump from their forecast for 2015.
Despite these large increases in confidence, Hong Kong’s small businesses remain the least positive of the
markets surveyed, slightly below Australia and Singapore. Having said that, with many small businesses focused
on e-commerce, social media and exporting (which the survey results show are important drivers of growth), there
is much to be confident about for 2016 and beyond.
This increase in economic and business confidence comes at a time when Hong Kong’s economy is facing a range
of external pressures including slowing growth in the Mainland (although it remains very robust), uncertainty over
US interest rates and weaker than expected recoveries in the economies of the US, Japan and the euro area.
Small businesses that expect to innovate, grow their e-commerce presence to a large extent and strongly grow
revenue from exports are significantly more likely to expect their business to grow in the next 12 months. In
addition, small businesses are also more likely to expect to grow if:
 they have between 5 and 19 employees
 the respondent is aged under 50
 the business reported growing in the past 12 months.
Further, small businesses are more likely to expect their local economy to grow if:
 they have between 5 and 19 employees
 they are in the manufacturing, property or construction sector
 the respondent is aged under 40.
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KEY FINDING
A stronger focus on innovation should lead to more Hong Kong small businesses experiencing growth.
23 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
ACCESSING FINANCE
Access to finance for Hong Kong’s small businesses became easier over the past 12
months.
Access to finance – the percentage that experienced easy to very easy financing conditions in
the previous 12 months5
2015
2014
Indonesia
60.6%
Indonesia
56.3%
China
59.3%
New Zealand
53.7%
Australia
54.3%
Australia
48.1%
New Zealand
50.0%
China
33.4%
Hong Kong
43.5%
Malaysia
32.3%
Singapore
34.1%
Vietnam
32.0%
Malaysia
31.8%
Singapore
30.9%
Vietnam
29.7%
Hong Kong
29.9%
Access to finance became easier for many Hong Kong small businesses that sought external finance in the past 12
months than in 2014.
These easier financing conditions may have encouraged more Hong Kong small businesses to seek external
finance, with 78.1 per cent seeking external finance in the past 12 months, up from 69.1 per cent in the preceding
12 months. It should be noted that this result is well above the number of Australian and New Zealand small
businesses that sought external finance over the same period, even though small businesses in those markets
experienced easier financing conditions.
Banks are the most popular source of finance for Hong Kong’s small businesses, followed by investors.
Hong Kong’s small businesses were most likely to have sought external finance to assist with business growth.
Hong Kong’s small businesses were, however, the most likely to have borrowed in the past 12 months to cover
increasing expenses, increasing rent and increasing borrowing expenses. A stronger focus on cash flow
management and cost control should see fewer businesses borrow for these purposes.
5
All data for China excludes Hong Kong, which is shown separately.
24 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
KEY FINDING
Accessing finance became easier for many of Hong Kong’s small businesses in 2015. A stronger focus on cash
flow and cost control should see the number of Hong Kong’s small businesses borrowing to cover increasing
costs, rent and borrowing expenses fall.
25 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
APPENDICES
HONG KONG DATA SNAPSHOT
Business and economic growth
Hong Kong small businesses that expect their
business to grow against small business growth
expectations for Hong Kong's economy
Small businesses that expect their business to
grow - Hong Kong against survey average
90%
90%
70%
70%
50%
50%
30%
30%
2011
2012
2013
Survey average
2014
2015
2011
Hong Kong
2012
2013
2014
Expect local economy to grow
2015
Expect their business to grow
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Businesses that grew in the past 12 months
63.8%
5/8
46.5%
7/8
68.2%
Businesses that expect to grow in the next 12
months
55.1%
8/8
39.0%
8/8
70.7%
Businesses that expect the local economy to
grow in the next 12 months
52.1%
5/8
39.4%
8/8
61.1%
26 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Business activity over the past 12 months
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increased employee numbers
32.5%
4/8
18.1%
6/8
33.1%
Improved business management had a major
positive impact on their business
20.4%
5/8
N/A
N/A
25.4%
Increasing costs had a major negative impact on
their business
41.9%
3/8
N/A
N/A
39.0%
Required funds from an external source
78.1%
4/8
69.9%
5/8
59.9%
Sought external funds for business growth
50.2%
6/8
51.8%
6/8
56.3%
Found it easy or very easy to access external
finance
43.5%
5/8
29.9%
8/8
47.6%
Rent was the most detrimental factor impacting
their business
41.9%
1/8
N/A
N/A
22.9%
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increase employee numbers
32.8%
5/8
22.7%
6/8
41.8%
Definitely expect to introduce a new product,
service or process unique to their market or the
world
17.7%
5/8
N/A
N/A
22.0%
Expect to grow their e-commerce presence to a
large extent
42.6%
2/8
N/A
N/A
32.2%
Expect revenue from overseas markets to grow
strongly
22.3%
2/8
N/A
N/A
19.1%
Expect to significantly increase spending on
marketing and promotion
24.5%
4/8
N/A
N/A
22.8%
Expect to grow their investment in assets
strongly
23.4%
4/8
N/A
N/A
23.1%
Definitely will seek external funds
31.3%
4/8
18.1%
5/8
29.2%
Expect easy to very easy access to finance
41.7%
3/8
27.3%
7/8
43.3%
Expect to seek external finance to fund growth
51.9%
6/8
49.5%
7/8
59.7%
Planned business activity over the next 12 months
27 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Social media and e-commerce
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Earned revenue from online sales
80.4%
4/8
75.5%
5/8
68.9%
Used social media for business purposes
93.2%
4/8
87.9%
5/8
81.4%
Demographics
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Business is 10 years old or younger
58.9%
6/8
60.6%
5/8
65.6%
Respondent is aged 39 or younger
63.4%
4/8
55.7%
6/8
53.3%
28 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
COMPARISON OF RESULTS BETWEEN HONG KONG,
SHANGHAI AND SINGAPORE
Key results
Business and economic growth
Hong Kong
Shanghai
Singapore
Businesses that grew in the last 12 months
63.8%
79.5%
58.7%
Businesses that expect to grow in the next 12 months
55.1%
76.9%
56.5%
Businesses that expect the local economy to grow in the
next 12 months
52.1%
71.1%
48.1%
Hong Kong
Shanghai
Singapore
Increased employee numbers over the PAST 12 months
32.5%
39.7%
19.7%
Plan to increase employee numbers over the NEXT 12
months
32.8%
45.5%
27.7%
Hong Kong
Shanghai
Singapore
17.7%
25.0%
15.2%
Hong Kong
Shanghai
Singapore
Earned revenue from online sales
80.4%
92.3%
63.6%
Expect to grow their e-commerce presence to a large
extent in the next 12 months
42.6%
29.5%
19.4%
Used social media for business purposes
93.2%
96.2%
79.6%
Jobs creation
Innovation
Definitely expect to introduce a new product, service or
process unique to their market or the world
Online sales and social media
29 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
Exporting
Hong Kong
Shanghai
Singapore
22.3%
10.9%
17.7%
Hong Kong
Shanghai
Singapore
20.4%
32.1%
20.3%
Hong Kong
Shanghai
Singapore
Increasing costs had a major negative impact on their
business
41.9%
39.1%
36.1%
Rent was the cost increase most detrimental to their business
41.9%
41.7%
32.6%
Expect revenue from overseas markets to grow strongly over
the next 12 months
Improved business management
Improved business management had a major positive impact
on their business
Costs
30 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – HONG KONG REPORT
ABOUT THE SURVEY
The CPA Australia Asia-Pacific Small Business Survey 2015 is part of a longitudinal annual study of small business
conducted by CPA Australia since 2009. This report presents a cross-market comparison between the eight
markets surveyed and, where applicable, a comparison of results from 2009 onwards. The survey was conducted
between 24 September and 14 October 2015.
The mainland of China and Vietnam were included in the survey for the first time in 2014. Indonesia and New
Zealand were included in 2011.
The survey in the mainland of China was conducted in Beijing, Chongqing, Guangzhou and Shanghai. All data for
China excludes Hong Kong, which is shown separately.
Interview method
In each market, the online survey was conducted amongst a random sample of small business owners/managers.
The sample was obtained through online panel provider Research Now and their Asian panel partner iPanelonline.
To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director,
a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with
fewer than 20 employees.
Sample
In total, 2932 participants completed the survey, including 510 from Australia, 610 from the mainland of China, 265
from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310
from Vietnam.
Of the 610 participants from the mainland of China, 155 were from Beijing, 152 were from Chongqing, 147 were
from Guangzhou and 156 were from Shanghai.
Questioning
Questions on small business confidence, employment, social media, costs and access to finance were drawn from
previous surveys. Some slight modifications to question wording were made to a number of those repeated
questions. Questions on innovation, major influences on the business environment, e-commerce, spending on
marketing and assets and exporting are new in this survey.
Questionnaires in Australia, Singapore and New Zealand were administered in English. The Hong Kong
questionnaire was administered in traditional Chinese, the questionnaire for Malaysia was administered in both
English and Bahasa Malaysia, Indonesia’s questionnaire was administered in Bahasa Indonesia, China’s
questionnaire was administered in simplified Chinese, and Vietnam’s questionnaire was administered in
Vietnamese.
Rounding
All percentage results shown in this report have been rounded.
29
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