Number of HK start-ups blow up to a record high of 3,755

The figure represents a 12% increase from 2020.

The number of start-ups in Hong Kong increased by 12% to 3,755, a record high for the city, an Invest Hong Kong (InvestHK) survey found.

The growing list of start-ups also drove the job market to rebound by 29% from last year, engaging 13,804 staff. Based on the survey, 73% of founders established their respective start-ups in HK due to its accessibility to international or regional markets, whilst 67% were attracted by the city's simple tax system and low tax rate.

Other key factors mentioned by founders were business opportunities in Mainland China (61%) and access to funding (59%).

Start-up founders in HK were 66% locals, 7% returnees, and 27% non-locals.

From the non-local founders, 20.5% were from Mainland China, 14.4% were from the United States, 11.1% were from the United Kingdom, 7.1% were from France, and 6.8% were from India.

In an effort to provide a platform for new business opportunities in Hong Kong, InvestHK will revive its annual start-up event, StartmeupHK Festival.

The festival will be held from 23 to 28 May 2022 through a hybrid format.

During the event, there will be keynotes, panel discussions, exhibitions, investor and business matching, hackathons, and job fairs.

Jayne Chan, head of StartmeupHK at InvestHK, said they are expecting the growth in star-ups in HK to “keep rising as the digitalisation trend continues to accelerate and broaden due to the pandemic.”

“In 2022, we expect to see greater numbers of start-ups focusing on ESG [environmental, social and governance] and net-zero, with proptech, social ventures and greentech expected to grow substantially in future,” Chan added.