A Report on Support Measures for Small and Medium Enterprises

CONTENTS

Executive Summary

Chapter 1 : Introduction

Chapter 2 : The Committee's philosophy and consensus

• Definition of SMEs

• Philosophy and consensus

Chapter 3: Present situation of SMEs and their challenges

• The role of SMEs

• Challenges facing SMEs

1. Macroeconomic challenges

1. Globalisation of world economy

2. China's accession to the WTO

3. New economic order

2. Challenges from local economy

1. Business environment

2. Financing

3. Corporate governance and culture

4. Human resources

5. Technology application

6. Market expansion

Chapter 4 : Proposals to help SMEs start, build and expand their businesses

• Existing support measures

• The role of trade associations

• Proposed additional support measures

1. Business environment

1. Maintaining a favourable business environment

2. Helping to start a new business

2. Financing

1. Narrowing the existing gap in the loan market

   1. SME Business Installations and Equipment Loan Guarantee Scheme
      
      

2. Developing diversified financing tools and channels

   1. Enhancing the credit services of the Hong Kong Export Credit Insurance Corporation
      
      
   2. Studying the feasibility of credit guarantee in the form of insurance
      
      
   3. Enhancing the knowledge of equity financing
      
      

3. Facilitating SMEs to grasp information on the financing market

3. Corporate governance and culture
   

4. Human resources

1. Increasing the supply of quality manpower

   1. Education
      
      
   2. Bringing in talent
      
      

2. Strengthening the culture of life-long learning in the workforce
   
   

3. Helping SMEs enhance the value of their workforce

   1. SME Training Fund
      
      
   2. Other suggestions to upgrade human resources

5. Technology application

1. Applied technology
   

2. IT application

   1. Raising SMEs' IT awareness
      
      
   2. Increasing the supply of IT personnel

6. Market expansion

1. Overseas markets

   1. SME Export Marketing Fund
      
      
   2. Forming strategic partnership
      
      
   3. Opening up new channels to promote Hong Kong products and services
      
      

2. Local market

   1. Stimulating local consumption
      
      
   2. Attracting tourists from overseas and the Mainland
      
      
   3. Assisting SMEs to bid for Government procurement contracts
      
      
   4. Attracting overseas and Mainland enterprises to set up offices and hold more large international conventions and exhibitions in Hong Kong
      
      

3. The Mainland market

7. SME Development Fund

Chapter 5 : The four funding schemes

• SME Business Installations and Equipment Loan Guarantee Scheme
• SME Development Fund
• SME Training Fund
• SME Export Marketing Fund

Chapter 6 : Conclusion

Acknowledgements

Appendix: 1 : Terms of reference of the Small and Medium Enterprises Committee

Appendix: 2 : Membership list of the Small and Medium Enterprises Committee (2000-2002)

Appendix: 3 : Membership list of working groups under the Small and Medium Enterprises Committee

Appendix: 4 : Consultation conducted by the Small and Medium Enterprises Committee

Appendix: 5 : List of organizations and individuals who were consulted by or who offered views to the Small and Medium Enterprises Committee (SMEC)

Appendix: 6 : Hong Kong's SMEs : size of establishment

Appendix: 7 : The Government and other support organizations' major support services for SMEs

The Committee | Report Highlights