Hong Kong SMEs stumbling in overseas expansion

Half determined to do business in China..

A new survey into the international ambitions of Hong Kong small and medium enterprises was commissioned by DHL Express Hong Kong and undertaken by the Hong Kong Productivity Council and involved 253 SMEs based in the city.

It revealed that 79% of the respondents traded across borders with 54% of them wanting to participate in local or overseas trade fairs in 2014. Despite slowing economic growth in the Mainland, 55.5% of SMEs are pushing ahead in their efforts to gain a foothold in this market.

SMEs are also focused on Asian countries/regions such as Taiwan (12.5%) and Japan (12%) and emerging markets including Thailand, Vietnam and the Philippines.

The survey showed a strong interest in growing their businesses abroad. SMEs, however, often face difficulties in opening new markets. Key factors holding them back include the cost of financing, (29%) and a lack of local market knowledge (29%).