Cybersecurity risks loom over small enterprises amidst growth

Six in 10 enterprises lost time and/or money due to cyberattacks last year.

Many small enterprises in Hong Kong are seeing growth in their business and the economy while facing increased cybersecurity risks, CPA Australia has found.

In its “Asia Pacific Small Business Survey 2023/24,” CPA Australia said 69% of 324 small firms surveyed in Hong Kong anticipate growth this year. 

Majority also have increased confidence in the economy, with 73% seeing expansion this year. 

The poll also found that 56% of SMEs reported growth in 2023 following their expansion to new markets. The trend is expected to continue this year as 79% of the businesses expect revenue from overseas sales to grow, compared to the survey average of 50%.

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As small businesses sustain their growth in 2024, so is their hiring with 52% expecting to add to their headcount, CPA Australia said.

Tapping other financial sources is also seen to increase this year. The poll reported that 89% said they will or may seek external funding, with covering increasing expenses the reason for many. 

Some of the efforts to ease financing conditions include the government’s SME Financing Guarantee Scheme and measures introduced by the Hong Kong Monetary Authority to expedite applications.

CPA Australia said another growth driver for small businesses in Hong Kong was technology adoption. Around 81% said they received over 10% of their revenue from online sales in 2023. Another 86% said that over 10% of their sales were received digitally.

However, CPA Australia warned that rapid digitalisation has triggered cybersecurity risks. Around 64% of respondents said they had lost time and/or money due to cyberattacks last year and seven in ten are concerned about the potential risks in 2024. Both results were the highest of the APAC surveyed markets.