Skip to main content

GO EAST YOUNG MAN - OPPORTUNITIES FOR START-UPS IN HONG KONG

Last month, I spent two weeks with my family in the wonderful and exciting city of Hong Kong.
Apart from the usual sightseeing, one of the reasons for our visit was to get together with one of my best friends, Dr Charles Li.

We met whilst doing our Ph.Ds together in Birmingham, and whilst I stumbled into academia, Charles has moved onwards and upwards through the financial world to become head of the ANZ Bank in China.

The last time we visited Charles and his family was back in 1997 when Hong Kong was being handed back to China and as the photos below shows, we had a great time both then and seventeen years in the wonderful environs of Jimmy's Kitchen.


Since then, there have been considerable changes both regionally and globally that have had a significant effect on this prosperous island. Perhaps the most important difference is that, unlike seventeen years ago, Hong Kong is no longer an isolated centre for prosperity in South East China.

With the growth of the mainland China economy around the Pearl River Delta, Hong Kong has had to adapt itself to changing circumstances and has had to partly reinvent itself in the process. This it has managed to do successfully and, according to the World Economic Forum, Hong Kong remains one of the most competitive economies in the World and was ranked above the UK in 2014.

It is still a major financial centre as the famous Victoria Harbour skyline with its array of global banking headquarters testifies, despite Shanghai being touted to become a more important finance location within Asia over the next few years. However, with the Pearl River Delta expanding massively in the last decade to have a greater export impact than Japan - only Germany and the USA having a greater trading volume than this region - Hong Kong has found itself as the gateway to one of the fastest growing manufacturing regions of the World.

And despite fears about the political influence of China and its ability to continue its economic growth, Hong Kong has topped the rankings as the world's freest economy in the Index of Economic Freedom for 20 consecutive years.

The former colony has therefore continued to evolve in a changing global economy. More specifically, it is looking to create a revitalised role as a centre for new knowledge-based businesses that become global leaders in their fields. Indeed, Forbes recently voted Hong Kong as the leading technology hub outside of Silicon Valley, beating contenders such as Tel Aviv and London which is not surprising given that three of its universities are ranked in the top forty in the World.

Interestingly, the opinion of the world’s leading business periodical was that it wasn’t what was happening now that makes the city such a compelling prospect but the unrealised potential of Hong Kong in the near future . In particular, it felt that the combination of innovative and ambitious entrepreneurs on one side and a population of internationally experienced, wealthy tycoons on the other could result in the creation of the World’s centres for knowledge-based entrepreneurship.

So what does this mean for UK businesses wanting to expand their operations globally?

Certainly, with access to talent, capital and, most importantly, the Chinese market, there are real opportunities for innovative businesses from this country that want to use Hong Kong as a launchpad for their overseas business especially in areas such as creative industries, energy efficiency and waste management, financial management, medical devices and information technologies.

One way to access this global technology hub is through the StartmeupHK Venture Programme. This is a global competition for high-impact, innovative and scalable startups that want to expand their businesses globally from Hong Kong.

Launched earlier this week, it aims to provide a one-stop platform for entrepreneurs to set up and expand their business in Hong Kong and so gain access to financial, intellectual and social capital. More importantly, it will connect start-ups with key parts of the entrepreneurial ecosystem in Hong Kong including multi-national corporations, investors, entrepreneur clubs, co-working spaces, incubators and universities.

Those firms that are successful will be provided with a free return flight and accommodation in Hong Kong so that they will be given the chance to pitch their business to potential partners and investors in November.

During their five day visit, they will also be invited to attend a market briefing organised by InvestHK – the business arm of the Hong Kong Government - and receive mentoring and practical help to build their business in Hong Kong.

Certainly, it is an opportunity not to be missed and given the increasing numbers of innovative Welsh companies, I hope that they will take full advantage of this chance to access the fast growing Chinese market and create trading links between Wales and one of the most entrepreneurial cities in the World.

Popular posts from this blog

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...

THE IMPORTANCE OF FRANCHISING

When we talk about start-ups and entrepreneurship, rarely do we discuss the potential of franchising not only as a way of establishing new ventures in the economy but also as a method of growing existing businesses. According to the British Franchising Association, franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor. The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. This enables individuals to start their own businesses without having to develop their own ideas and utilising an existing brand and established market. Of course, whilst each franchise business is owned and operated by the franchisee, the franchisor controls the quality and standards of the way in which the business is...