Hong Kong small businesses are increasingly confident about the future of their business and the SAR despite growing concerns about cybersecurity risks.
The recently released CPA Australia’s Asia Pacific (APAC) Small Business Survey 2023-24 reveals that 60% of small businesses in Hong Kong expect to grow this year, while 73% think the city’s economy will grow. However, Hong Kong ranked top among surveyed APAC markets on the anticipated threat of a cyber-attack.
“Bolstered by an improving economy and various government support programs, ranging from an accommodating financing environment to schemes promoting digitalisation and marketing, Hong Kong small businesses made a steady recovery last year and most project a mild expansion in 2024,” said Cliff Ip, Greater China Divisional President of CPA Australia.
“An increasing adoption of e-commerce and digital tools enabled many small businesses in Hong Kong to capitalise on overseas opportunities. Besides, Hong Kong small businesses have developed a strong innovation culture in recent years, giving them a competitive advantage to promote and sell their new products and services outside Hong Kong.”
CPA Australia’s annual survey collected views from 4,222 small businesses in 11 markets across the Asia-Pacific region, including Singapore, Mainland China, Australia, and 324 respondents from Hong Kong. Many of the Hong Kong small businesses said they were confident and benefiting from the gradual revival of the local economy.
The Hong Kong respondents were most likely to nominate entering new markets as the factor that made the most positive contribution to their business in 2023, with 79% of the respondents expecting revenue from overseas sales to grow, compared to the survey average of 50%.
Another growth driver is the high rate of technology adoption among small businesses in Hong Kong. Last year, 81% of Hong Kong’s small businesses received over 10% of their revenue from online sales, outstripping counterparts in other markets. 86% of respondents reported receiving over 10% of their revenues through digital payment platforms.
“The offering of e-consumption vouchers in each of the past three years, alongside the gradual adoption of online shopping and food ordering habits, has compelled small businesses to undergo digital transformation to stay relevant and competitive in the market,” said Ip.
However, rapid digitalisation has triggered cybersecurity risks. 64% of surveyed businesses in Hong Kong indicated that they had lost time and/or money due to cybersecurity incidents last year, and 70% were concerned about the potential of cyberattacks in 2024.
“Threats from cyberattacks, such as phishing attacks, have caused direct losses. Though two-thirds of surveyed respondents have recently reviewed their cybersecurity protections, business owners must continue allocating resources and tools to protect data and information, provide staff training, and consult with IT experts,” added IP.
