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InvestHK to record the rise of Hong Kong’s startup growth 2021 (A Survey)

Heaptalk Team, economy . 01 Nov 2021
Hong Kong startup

Heaptalk, Jakarta — Amid the severe economic condition as the great hit of the pandemic, the Startup Survey 2021 performed by Invest Hong Kong (InvestHK) revealed an interesting fact, the ecosystem of Hongkong’s startup in 2021 demonstrated a great vibrant. The condition is considered as a positive signal for the economic revival of the country. 

In more detail, the survey shows that the overall number of startups in the city reached a record of 3,755, an increase of 12% from the previous year. The enhancement, further, brought a positive effect to the job market across different business sectors proven by the number of staff hired by startups that increased by 29% from last year.

The attainment is driven by several factors, including accessibility to international or regional markets (73%), the simple tax system and low tax rate (67%), business opportunities in Mainland China (61%), and access to funding (59%). The survey has involved 13,804 staff from various business sectors, such as fintech, e-commerce, supply chain management, and logistics technology, as well as professional or consultancy services. The escalation of the job opportunities builds a positive outlook for the Hong Kong job market.

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The Head of StartmeupHK at InvestHK, Ms. Jayne Chan, said in a statement, “Although the world has faced overwhelming disruption, there continue to be many exciting opportunities for startups to unlock. The growth in the number of startups in Hong Kong is expected to keep rising as the digitalization trend continues to accelerate and broaden due to the pandemic. In 2022, we expect to see greater numbers of startups focusing on ESG (environmental, social, and governance) and net-zero, with proptech, social ventures, and greentech expected to grow substantially in future.”

Moreover, the business growth supported by digital adoption across the country has empowered specific startups in certain sectors, such as e-commerce, to thrive. In turn, the condition also benefited the supply chain management and logistics industry, while the pandemic also accelerated the adoption of remote learning, driving exciting developments in edtech, up 27% year on year.

The great deal from China’s 14th Five-Year Plan, which appointed Hong Kong as an international I&T hub, also is expected will soar the I&T strength in the Guangdong-Hong Kong-Macao Greater Bay Area. The agreement gave new impetus to the growth of startups in the years to come.

As one of the international financial centers and with its unique role as a bridge for innovative companies to access the Mainland and Asian markets, Hong Kong continues to be attractive to overseas startups. While results showed 66% of the startup founders were Hong Kong locals and 7% were Hong Kong returnees, 28% of the startup founders were non-local. In terms of the source country/region of non-local founders, Mainland China ranked first (20.5%), followed by the United States (14.4%), the United Kingdom (11.1%), France (7.1%), and India (6.8%).