With the enhancement of digitalization, small and medium enterprises (SMEs) in Hong Kong are suffering due to funding challenges.
A survey was conducted by DBS Bank, which revealed the truth about SMEs. When they interviewed 105 SMEs between March and June 2023, they found that 93% of the community supports digitalization as it is vital for their organizations. However, 57% of the SMEs found identified funding to be the biggest threat to their organization.
Besides funding, limited resources (46%) and a lack of relevant technical expertise or skillset (43%) were identified as contributing factors to the digital gap. In response to these challenges, 65% of the SME community expressed plans to increase their investments in digitalization by more than 25% this year, compared to 2022.
Besides funding, other factors have also affected the area such as –
- Limited Resources (46%)
- Lack of relevant technical expertise or skillset (43%)
- Digital gap
Furthermore, when asked how they are going to tackle these challenges, SMEs responded that they plan to enhance their investment in digitalization by 25% or more by the end of this year. It will be higher from last year.
Upon discussing the top priorities in digitalization, some crucial points came out like-
- Digital Marketing (46%)
- Establishing an online presence through e-commerce and mobile applications (41%)
- Developing data analysis and management capabilities (37%)
They want to accomplish this aim over the upcoming five years.
Jolynn Wong, Head of Business Banking at DBS Bank Hong Kong, concluded, “As Hong Kong returns to normalcy, we have witnessed positive business momentum in the SME community, with business account openings increasing by over 80% year-to-date as of May 2023 in Hong Kong, compared to the same period last year. We will continue to enhance our digital solutions and banking services as SMEs revitalize, enabling them to conduct business more efficiently, effortlessly, and intelligently.”
- Published By Team Hongkong Journalist