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HK's SMEs second to Taiwan in global and regional exports: FedEx study

FIFTY per cent of small- and medium-size enterprises (SMEs) in Hong Kong are currently exporting well above the regional and global averages of 36 per cent and 38 per cent, according to a new global research study conducted by Harris Interactive on behalf of FedEx in September 2015.

On average, these SMEs export close to US$2.6 million worth of goods annually, second only to Taiwan with $2.8 million and far higher than the regional and global averages of $1.8 million and $1.5 million.

The research study, entitled "Global Opportunities: Examining Import and Export Trends Among Small Businesses" showed that SMEs that export are 1.7 times more likely to be experiencing growth of 11 per cent or more than their non-exporting counterparts.

The study interviewed about 500 senior executives of Hong Kong SMEs, among a total of 6,891 globally in 13 markets (Brazil, China, Colombia, France, Germany, Hong Kong, India, Italy, Japan, Singapore, South Korea, Spain and Taiwan) including six in Asia Pacific.

"At FedEx, we see the huge potential in small businesses, and the increasing number of small players in the global trade scene are the best demonstration of that," said managing director, FedEx Express, Hong Kong and Macau, Anthony Leung.

"The research study is one of the many ways that we look at how to better our services to help small businesses unleash their potential. After all, supporting small businesses to expand into international markets will not only benefit the businesses themselves, but also the health of national economies where SMEs are a major driving force."

While world markets represent a huge opportunity, many SMEs are still hesitant about taking the plunge and branching out into the global arena. Although 76 per cent of SMEs in Hong Kong recognise there is a whole world of customers out there, only 50 per cent - a much lower proportion - are currently exporting.

This suggests that, even though SMEs see the potential of exporting, they are not confident in their chances of translating that potential into business success. One of the reasons for this seems to be a lack of advice and support: only 11 per cent of the city's SMEs feel that they already have sufficient support to succeed in international markets.

To tackle this confidence gap, logistics plays a critical role. In Hong Kong, SMEs surveyed say that logistics service providers are one of their top sources of expertise on exporting. Other sources include information from the Internet and the media, as well as industry trade bodies.

Looking ahead, SMEs are optimistic about the prospect of exporting internationally despite the perceived barriers today. Some 66 per cent of the territory's SMEs anticipate they will be doing so by 2020, a 16-percentage-point increase from the current level and higher than the regional and global averages of 52 per cent and 55 per cent. They are also positive about their international business growth: 54 per cent believe they will be reaping greater revenues from overseas business within five years.