Exports now account for 88% of total revenues of Hong Kong SMEs, or HK$11.28 million annually, according to new research from FedEx Express.
The research found that total export revenues for Hong Kong SMEs have increased by 24% over the last two years.
Top export markets for local SMEs include China (52%), Taiwan (37%) and Japan (30%). Outside the APAC region, the top export markets in are Europe and Central or South Asia.
More than 70% of Hong Kong SMEs are now engaging in exports, a significant increase from just three years ago, the survery found. In addition, around a third of Hong Kong SMEs expect their exports to increase in Asia-Pacific (39%) and outside of Asia-Pacific (32%).
Key factors driving growth for SMEs including emerging industry 4.0 technologies and the thriving digital economy, including e-commerce, mobile-commerce and social commerce.
SMEs are harnessing e-commerce (87%) and mobile-commerce (79%) to source goods and find new customers outside of Hong Kong, and re in the process of deploying new technologies including utomation software (80%), mobile payments (72%) and big data analytics (71%).
Meanwhile SMEs also expect an increase in the usage of technologies including mobile payments (62%), big data analytics (59%) and 3D printing (52%).
But SMEs are also facing various barriers to successful business expansion, with customs procedures and currency exchange issues named the biggest challenges, the survey found.
“Local SMEs are facing a rapidly-changing business environment,” FedEx Express Hong Kong and Macau managing director Anthony Leung said.
“We are pleased to see that local SMEs are increasingly expanding their global footprint and are generating more revenues from exports. FedEx Express is committed to supporting businesses going global, and as one of the main logistics providers in Hong Kong, we will continue to support SMEs with the right resources and tools to meet their needs.”