Hong Kong is seen as a haven for startups despite difficulties in getting credit, red tape and market domination by large corporations.
New research from Regus indicates that 80 percent of local entrepreneurs did not regret starting a business in Hong Kong and are happy with their decision to choose this city to make their dreams come true.
The study is based on a survey of more than 26,000 business owners and decision-makers in 90 countries. Seventy-eight percent of those surveyed said that credit is the biggest deterrent to would-be entrepreneurs in Hong Kong.
Sixty-eight percent see market domination by large corporations and 61 percent see red tape as deterrents.
Thirty-three percent of local entrepreneurs started businesses because they lost their previous employment.
Need for more government support
Fifty-seven percent of the local business community said they are challenged by the lack of government support for entrepreneurs but they still prefer Hong Kong when they compare it with other markets.
Seventy-four percent of mainland respondents and 97 percent of Taiwanese respondents also see this lack of support as an obstacle.
Sixty percent of local respondents and 55 of global respondents see the current economic conditions as a deterrent.
"The results of our survey, both from local entrepreneurs and the wider Hong Kong business community, suggest that local entrepreneurs are a pretty resilient bunch, willing to take risks and overcome obstacles if that's what it takes to succeed," said John Henderson, chief finance officer, Regus Asia-Pacific.
Henderson suggests that the government focus on removing obstacles by cutting red tape and providing them with better official support.
This has become even more important as small-to-medium-sized businesses make up over 98 percent of total business units in Hong Kong, making significant contribution to the local economy.