Pilot Mentorship Programme for SMEs kicked off
Friday, October 27, 2000

The Government attaches great importance to supporting Hong Kong's small and medium enterprises (SMEs) at various stages of development, as they are the backbone of our economy, said the Director-General of Trade and Industry, Mr Joshua Law.

Speaking at the Kick-Off ceremony of Pilot Mentorship Programme for SMEs today (October 27), Mr Law said: "There are at present over 290,000 SMEs in Hong Kong. They account for more than 98% of the local business establishments and employ over 1.39 million people, which is equivalent to about 60% of private sector employees."

Mr Law said: "As a result of Hong Kong's development into a knowledge-based economy and an IT hub; increasing globalisation of world economy; opening up of the Mainland market upon China's accession to the World Trade Organization, and the vast opportunities and keen competition that follow, the business environment to-date is far more challenging than previously. Entrepreneurs would find themselves in a very demanding environment.

"To remain competitive in the New Economy, SMEs must equip themselves with the capability of applying innovation and technology, quick in response, be creative and be able to master management and entrepreneurial skills.

"The Pilot Mentorship Programme aims to provide an opportunity for SME operators, particularly those who are at their early stage of business development, to learn from and be guided by the experience and expertise of successful businessmen. It this way, SMEs could benefit from the experiences of these successful businessmen, therefore better equipped to find the right direction and enhance efficiency.

The Pilot Mentorship Programme was launched in May this year. Locally registered companies which are of a size of not more than 20 employees and have been established for not more than five years are eligible to join the programme.

The Small and Medium Enterprises Office (SMEO) of the Trade and Industry Department (TID) has received a total of 149 applications, of which 115 are qualified. Most of them are in manufacturing, import and export, wholesale and retail businesses. Others are in the technology and communication field.

Forty-two experienced entrepreneurs, business executives and professional nominated by nine trade and industry associations have been appointed as mentors of the programme. They will provide counselling to participating SMEs on a voluntary basis.

Based on the business nature of the SMEs and the types of expertise they have expressively sought, the SMEO has managed to match 79 pairs of mentors and SMEs.

Mentors will listen to the SMEs' problems and views, share with them their thinking and experience and provide advice to them during the mentorship period.

The programme will be put on trial for a year. Afterwards, the SMEO will review its effectiveness with a view to deciding whether and, if so, how the programme should be run in the longer term.