Why Hong Kong isn't much of a start-up haven anymore

57% of businesspeople cite lack of government support.

According to the latest study by Regus, the biggest deterrents to would-be entrepreneurs in Hong Kong are seen as difficulties securing credit (78%), market domination by large corporations (68%) and – perhaps surprisingly – red tape (61%).

While 57 per cent of the local business community cited a lack of government support for entrepreneurs as a deterrent factor, Hong Kong nevertheless appears to be doing well in this regard compared to other markets.

Local business people viewed this as the fourth-greatest deterrent out of the five common deterrents respondents were asked to choose from. In contrast, 74 per cent of mainland respondents and a resounding 97 per cent of Taiwanese respondents saw this lack of support as an obstacle.

Current economic conditions were cited as a deterrent by 60 per cent of local respondents, and 55 per cent globally, suggesting they regard the present global outlook as less of an obstacle than factors like red tape or credit difficulties.

"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. "When you consider that small-to-medium sized business make up over 98 per cent of total business units in Hong Kong , the scale of their contribution to the local economy is easy to see. This is a powerful argument for removing obstacles by cutting red tape and providing them with even greater official support."