Hong Kong has always assumed the giant of business leadership in the international market. It has a fragile but very diverse and competitive market, providing all the infrastructure necessary to start a business venture.
A friendly legal environment, well-established banking system, good infrastructure, and global connectivity make Hong Kong the ideal place to start a start-up. Besides, Hong Kong is strategically located and is considered central for trade and communication.
These aspects, in unison, make it easy for entrepreneurs to develop a business model that can expand quickly in Hong Kong.
Moreover, the environment is easy for business, and government support and tax legislation in Hong Kong create a solid base for an ambitious founder who wants to develop a company in Hong Kong.
If you also want to set up your startup business in Hong Kong, you have visited the right platform. In this article, we will look at how to create a bigger and better startup using government grants and schemes found in Hong Kong.
What is a Scalable Startup?
To understand what a scalable startup is, you must understand scalability. The term scalability refers to the ability of an organization to improve its performance with increasing workload and operational demands.
According to this explanation, a scalable startup can gain profits with available resources and no increased costs. A scalable startup makes full use of all kinds of resources and allocates them to increase the profit margin without increasing the costs for the startup.
Furthermore, a scalable business leverages productive strategies, technologies, government grants and initiatives, and other resources to improve its performance in the market.
Why Choose Hong Kong?
The first thing that strikes individuals’ minds is what makes them choose Hong Kong instead of other countries to commence their business. Hong Kong also has many reasons to persuade people to start a business in this region. These factors are explained below in detail.
- Strategic Location – Hong Kong is situated in the heart of Asia’s high-growth economies. It acts as a gateway to enter the Asian market. If you establish your startup in Hong Kong, then there is a high chance that you can expand your business in the vast Asian market easily.
- World-class Transportation – Hong Kong is well known for its development in the transportation industry. It uses all the advanced features in its transportation to make it safe and useful. These advancements have helped Hong Kong gain the stature of a world-class city.
- Simple Tax System – If you choose a location, you must look into its tax regulations. In the case of Hong Kong, you need not worry because it has one of the world’s simplest and most understandable tax laws. The tax system is very simple, with only three direct taxes: salary, property, and profits.
- Supportive Government – Another important reason for choosing Hong Kong as your startup spot is its supportive government. The Hong Kong government understands the importance of startups for its economic growth. Therefore, it has launched several grants and initiatives to help startups scale and grow. These policies will be discussed further in this article.
- Talented Workforce – Hong Kong has a large, highly skilled, and educated workforce. This makes finding talented individuals and recruitment very easy for startups. Moreover, the 18-year free education system helps individuals build essential skills and excel in the market. This talented workforce allows startups to strategize operations and scale easily in Hong Kong.
Grants and Initiatives Launched by the Hong Kong Government
The Hong Kong government offers many granting schemes and measures to startups, from small to large. It notably delivers basic facilities and funds to start-ups to support their growth and expansion. The following are the government grants and initiatives the Hong Kong government provides.
1. Innovation and Technology Fund (ITF)
The Innovation and Technology Fund (ITF) is a good scheme for startups focused on innovation and technology by the Hong Kong government. Its dominant purpose is to give startups funds to enhance Hong Kong’s innovation and technological strengths.
2. Technology Voucher Programme (TVP)
Another program initialized by the Hong Kong government is the Technology Voucher Programme (TVP), which is intended to provide technical support to the local entities. There is a provision for the startups up to HKD 600,000. The program also clearly contributes to a startup’s general productivity and aids in a company’s upgrading of its activities through technology.
3. Cyberport Incubation Program
The Hong Kong government has been very supportive of start-ups, and one of the supported programs is the Cyberport Incubation Program. It offers cash to start-ups to finance their business and provides them with offices and a list of its clients and partners.
4. HKSTP Incubation Programs
Much as the emergence of new companies has been considered by the Hong Kong Science and Technology Parks (HKSTP), several incubation programs have been developed to support startup companies at different stages of the business. HKSTP has three startup incubation schemes: Incu-App, Incu-tech, and Incu-bio. Such incubation programs assist startup firms in that they offer them cash, labs, and desks.
Other government grants and initiatives launched by the Hong Kong government include the Leading Enterprises Acceleration Programme (LEAP), Advanced Manufacturing Centre (AMC), Cyberport Creative Micro Fund (CCMF), Researcher Programme, Soft Landing Programme, and many others. If startups wisely use these initiatives, they can easily make their businesses profitable and scalable.
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Steps to Leverage Government Grants and Initiatives
As an entrepreneur, you must follow some simple steps to leverage government grants and initiatives to build a scalable startup in Hong Kong.
1. Identify Appropriate Programs
The first step to leveraging government grants and initiatives is identifying appropriate programs. Finding government programs that resonate with your business structure and fulfill the startup’s needs is important. You should also understand the eligibility criteria and application process to access these programs’ benefits easily.
2. Develop a Strong Proposal
The next step is to develop a strong proposal so that you can present your ideas and needs clearly. A well-developed proposal helps create a good perception of the startup and increases the possibility of the government extending its support. It must include your goals, strategy, required assets/means, and the consequences of your start-up.
3. Follow Rules and Regulations
Thus, after you have identified your program, designed it, and developed a proposal, the final step is to complete an application form and forward it to relevant authorities. It is also necessary to observe all the requirements stated in the program documents and deliver all possible paperwork to the authorities.
Conclusion
Building a scalable startup by leveraging government grants and initiatives is simple. If you follow all the steps correctly, you will likely establish a scalable business in Hong Kong.
A detailed description of the government grants and initiatives launched by the Hong Kong government is given above in the article. Moreover, the steps to leverage these grants to build a scalable startup are also provided in the article.
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