Government Support for Improving Cost of Doing Business in Hong Kong

It is in the public domain that the government of Hong Kong has lived by its word generously without attaching strings to offer support to both local and international investments so that they can effectively start and do well in its soils. The administration has put in place mechanism and plans to attract the world of multinational corporations as well as small enterprises in Hong Kong to start their business. Such incentives include loan guarantees, innovations and incubations financial and advisory support and marketing financial aids.

Innovation and research funding

The Hong Kong government rolled out a research program dumped as SERAP. Small Entrepreneur Research Assistance Program provides financial support in the areas of research and development of technology that can come to the market and hit easily to such companies that are ready to take the challenge.

Under the same scope, the government started to pool the innovation and technology fund (ITF). This is a separate fund that is responsible for innovative ideas and technological upgrade for the companies. This helps the companies to remain competitive in the fast evolving technology days for maximum profitability.

Marketing Financial aid and loan guarantee

There are many supportive programs here;

The Creative Smart Initiative: This aid is specifically meant for the small medium sized enterprises in the creative industry. It helps these entities to brand their product in the market through international competitions and exhibitions.

The EMF (SME Export Marketing Fund): this motivates businesses in Hong Kong to stand in the renowned overseas exhibitions, B2B advisements and international business missions. The funding can overcome up-to fifty percent of companies approved expenditure that amounts up-to 50,000 dollars HK.

Financing Guarantee Scheme of SME provides loan guarantees for companies up to HK$12 million or ranging from 50 to 70 percent.

SME Loan Guarantee Scheme (SGS) those companies who are in need of financial aid for either capital or working equipments, the scheme secures their loan up to a total of $12 million HK.

Incubator programs

Hong Kong being an art and cultural city, there are government programs supporting incubation of ideas in the inventive industry as well as other industries.

The cyberport incubation program assists the SMEs in the digital media ideas and helps them come to the breakeven point and grow.

Design Incubation Program (DIP) gives housing to design upcoming professionals and professional guide.

DesignSmart Initiative gives up to HK$100,000 funding for small scale enterprises to start design projects

Hong Kong Science & Technology Parks scheme provides subsidized office space and highly valued professional consultancy and a small financial aid package to support research and development.