Hong Kong is home to more than 340,000 small and medium enterprises. To support this mainstay of the Hong Kong economy, the Government has launched many targeted funding schemes to help SMEs achieve steady growth.
Crowd’s Favorite: BUD Fund
An en t e rpr ise may rece ive a cumulative funding of up to HKD 6 million under the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund). Its wide applicability means it is a great help for SMEs looking to expand their business. According to Derek Li, Hong Kong Productivity Council BUD Fund Manager, the fund has been very positively received since its inception in 2012. It has also been continuously improving based on the industry’s input. Recently, a simplified online application service was rolled out.
“Non-listed enterprises with substantive business operation in Hong Kong are eligible to apply. Staff records, business transaction logs and audited reports should be in good order for application.” However, Li also reminded SMEs that certain common overheads are not covered by the funding. These include staff salary, utilities, and the like. Computing software, printers and other equipment for general use are also excluded.
Generally, projects involving regulated products or industries, such as medical devices, cosmetics, must first obtain the licenses for the relevant products or services. If a project involves the promotion and sales for distributing the products of other brands, the company must also first obtain their local distribution rights.
Perfect partner for export promotion: EMF
The “SME Export Marketing Fund” (EMF) offered by the Trade and Industry Department is also a great partner for SMEs. Fion Chan, Hong Kong Productivity Council SME ReachOut Manager, said that EMF is focused on supporting export promotion activities, hoping to help SMEs expand into overseas markets. An eligible company can receive a maximum of HKD800,000 in funding.
The funding can be used on common corporate promotion activities, including face-to-face or online product showcases, media advertisements and so forth. It also covers website optimization, mobile apps development. Following the launch of enhanced EMF measures last year, the fees for video shooting and editing of the aforementioned promotion activities are also covered by the funding.
Chan added that if companies wish to improve their competitiveness through technology adoption, they could also consider the use of technology vouchers. “Technology vouchers aim to support local enterprises in using technological services. An enterprise can receive a cumulative funding of up to HKD600,000 to cover the purchase of hardware, software, as well as various technology solutions. If a company opts to employ a technology consultant, it is also covered by the fund.”
Adopting technology to reform logistics services
The logistics sector can also look at the “Pilot Subsidy Scheme for Third-party Logistics Service Providers”. Kaitlan Chung, Hong Kong Productivity Council SME Funding Division Senior Manager, explained that the Government hopes to encourage the logistics sector to employ technology for efficiency and competitiveness improvement through this scheme.
As the name suggests, the scheme aims at supporting the third-party logistics service providers of Hong Kong, ie various logistics value-adding services, including but not limited to logistics tracking, monitoring and controlling, inventory management. Eligible companies could receive up to HKD1 million of funding in total.
Chung listed some funded technology projects, such as X-ray screening equipment and Explosive Trace Detection (ETD) purchased for Regulated Air Cargo Screening Facility (RACSFs); as well as specialized logistics technology systems such as automated technology, robotics, Transport Management System (TMS) and Real Time Locating System (RTLS). It is hoped that the industry could make good use of the scheme to raise the overall competitiveness of Hong Kong’s logistics industry in the long run.
