Small or Medium-sized Enterprises (SMEs), as defined in Hong Kong, are manufacturing enterprises with less than 100 employees or non-manufacturing enterprises with less than 50 employees.

There are 340,000 SMEs in Hong Kong, which constitute over 98% of the business establishments and employ about 45% of the total workforce in the private sector, which is about 1.3 million persons.

SMEs are in various sectors as listed below. They can be divided into 2 separate subsections: industry and services.

· In the industry subsector,

  • manufacturing,
  • mining & quarrying,
  • electricity & gas supply,
  • construction, and
  • waste management.

· In the service subsector,

  • the import/export trade & wholesale,
  • retail,
  • transportation,
  • storage, postal & courier services,
  • accommodation & food services,
  • information & communication,
  • financing & insurance,
  • real estate,
  • professional business services, and
  • social & personal services.

In terms of the number of SMEs and employees, the largest from each subsector is manufacturing and import/export trade & wholesale respectively.

 

Reasons why SMEs fail

Many SMEs fail because of the following reasons:

  1. Lack of spending power required for useful research and development. Which in turn puts pressure on leaders to understand the trends of their market.
  2. Significant sudden investments that bring unanticipated results.
  3. Insufficient knowledge of data security and management. SMEs should know how to create, store, transfer, share, and dispose of their data. Not employing the right security frameworks to technology adoption puts the business at risk for a data breach.
  4. Inefficient back-end operations. To achieve more streamlined operations, a manager should consider a higher level of integration, which in turn gives him/her more visibility and oversight across functions.
  5. Insufficient risk analysis.
  6. Lack of debt collection mechanisms. Late payments hinder SMEs from venturing into new investments.
  7. Poor resource management
  8. Misunderstood market demand.
  9. Lack of knowledge of customer experience.
  10. Inefficient monitoring of sale performance.
  11. Limited access to finances.
  12. Limited knowledge on accounting.
  13. Civil unrests like continuous protests have a toll on business performances as consumption rates reduce due to fear of public places and large crowds.
  14. Insufficient knowledge of sales and marketing of products and services.
  15. High labor costs leading to underemployment.
  16. Prohibitively high-interest rates that curb funding for expansion.

Fortunately, with our wealth of experience helping new businesses. We can help to mitigate many of these issues. By working with Paul Hype Page, we can share our knowledge and experience with various markets to help your business.

We are also experienced accountancy and can help you with your back-end administrative work. This frees up your time to focus on your business matters to ensure success.

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The solutions we offer for companies and their owners cover important areas such as incorporation, taxation, auditing, and work visas, among others.

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We are always ready and willing to work with any genuine and legitimate company which requires our incorporation services or any other services we provide.

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Marketing an SME

While your business might be based in Hong Kong, you must also be focused on building a regional presence. Being situated regional business hub such as Hong Kong., it is a waste to not take advantage of the many benefits of having a regional presence. Paul Hype Page is in fact an example of such an international firm. We operate in many countries around the region and can testify to the many benefits of expansion.

A firm with a regional presence is seen as more reliable, and your clients will have greater trust in you. You will also be able to cater to a much larger market, by expanding overseas.

Fortunately, Hong Kong makes it easy for SMEs to expand, with funds such as the Export Marketing Fund (EMF) readily available to aid them. Paul Hype Page is here to help as well, we offer services to incorporate your company in various markets tailored to your business needs. We will also advise you on which market is best suited for you.

 

Embrace New Technology.

Hong Kong has slightly more than half of its population online, and SMEs can enjoy being based in an internationally connected business hub as provided by internet penetration. Digital technology can help SMEs access a broader target audience. SMEs that leverage online marketing to create brand awareness and drive acquisitions are three times more likely to experience their desired level of growth. Digital technologies allow SMEs to gain market intelligence, scale, and tap into global markets at relatively low cost.

 

Listen and have insight.

Offer a real incentive to the time-poor individuals who take time to talk to you. You can start with industry organizations that have a useful online presence and run regional events that are worth attending. Be brief but full of information.

 

Use social media.

Facebook advertising has attracted close to two million SMEs as it is an inexpensive and effective way to market products and services to just any audience. Facebook allows you to target a specific audience based on location and frequent sites.

Make use of Google My Business (GMB) such that when a potential customer types a search, your products/services or company show as top results. GMB combines all your Google platforms into one central place. These include; your Google+ profile, Google maps profile, your Google reviews, access to data on Google Analytics, and Google insights, thus immediately giving your business credibility and visibility.

Email marketing is also another area of social media to venture in. Most people who visit your site will not immediately buy from you, so capturing contact information for additional marketing is essential. Have a “lead magnet” for example something you offer them in exchange for their email address like a free service trial or download.

Use of direct mail marketing. You can employ creativity. For example, you can customize your envelops to make them appealing and attractive through unusual shape, size, or material.

Make use of a webinar. A webinar is simply a seminar that takes place online in the form of presentation, demonstration, or discussion. And they are more engaging than simple videos.

 

Advertise in Niche Print Media.

As print media continues to decrease in overall popularity, the pricing or advertisement gets lower, so in the right niches, it is possible to run effective ads at affordable prices. To achieve a more effective outcome, combine it with social media.

 

Make use of televisions to advertise your company.

Commercials that are aired at the right time, like in the middle of an exciting television show, attract more visibility at the beginning or end of the news.

 

Writing a column

Where you get to share your expertise in the form of weekly or monthly write-ups. These columns allow you to make consistent contact with an audience, thus building an actual relationship with the publication’s readers.

 

Speak at events.

Brand and establish yourself as an authority and place yourself as a talented speaker who delivers great talks at popular events in your locality. This will provide you with the opportunity to market your company. Another way is to do so indirectly by making use of talented speakers or entertainers. Promote your products by using upcoming or popular celebrities. People identify with their celebrities, and they will tend to buy things that these personalities buy or are associated with.

 

Content marketing.

This is the process of creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined target. You require quality content, related topics, consistent content creation that is optimized for readers. Content writing is not limited to blog posts. It includes videos, podcasts, and online courses. Ensure you have the time and capital needed to get started with no initial ROI.

 

Local business groups.

Joining local business groups will allow you to meet up with other like-minded people who already share some common ground with you.

 

Partner with other businesses

By combining resources to work out a complementary arrangement that provides mutual benefit to both companies. For example, a marketing company could partner with an accounting firm to recommend each other’s services during new client onboarding, a coffee shop could offer free vouchers to a snack place, and a counselor could refer a client to a lawyer or private hospital.

 

Employ the services of a dedicated Chief Operating Officer (COO)

to implement and continuously upgrade the business systems. A great COO will integrate each business process by using complementary apps that allow information to flow seamlessly onto a single platform. By automating repetitive procedures and managing data with cloud-based systems, SME leaders are meeting the needs of growing their customer base.

 

Offer Staff Incentives

current staff are the best-suited way to get referrals because they know your product or service and your customer base, so they should be motivated to repeat the process each time they refer a customer/client.

 

Use Coupon Deal Sites.

These sites amass massive audiences according to location, allowing local regional and even national businesses to offer limited-time discounts to their members. An example of such

websites is Groupon. But coupons deals sites do not promote sales but rather promote deals, so unless you are making good deals, it is the last option.

The vitality and business performance of SMEs is very crucial to the development of Hong Kong’s economy. For economic growth to occur on a national level, there must be a partnership between the government and the private sector SMEs. The Trade and Industry Department provides service which aims to facilitate the development of SMEs and enhance competitiveness. The department strives to:

  • Provide SMEs with a comprehensive range of free business information through the Support and Consultation Centre for SMEs:
  • It administers funding schemes
  • Provide secretariat support to the SME committee
  • Participate in the SME-related activities of the Asia-Pacific Economic Cooperation and
  • Promote the importance of brand building, provide useful information on brand development and market exploration.