Growing SMEs in HK Plan to Inject Capital for Growth

Over 40 percent of Hong Kong's small and medium-sized enterprises (SMEs) plan to inject capital for business expansion in the near future, according to a survey released Wednesday by Hong Kong Productivity Council.

The survey on growth strategies of Hong Kong SMEs has been initiated to identify the strategy and investment specifics during their growth period since 1998. A total 704 SMEs from diverse industries were interviewed.

The survey found that 285 local SMEs, 40n percent of the total interviewed, are planning to inject capital for growth. Among them, over 50 percent see internal strengthening such as plant and equipment upgrade, and advertisement and promotion as the vehicles for growth.

And 11 percent prefer external collaboration such as joint venture and partnership as ways to seek business expansion, and about one third adopt both strategies, the survey showed.

In addition, over 70 percent of their investment plans involve China's mainland, an indication that many SMEs consider China's entry to WTO as an opportunity to gain easier access and broader market share, it showed.

People's Daily Online --- http://english.peopledaily.com.cn/