Small business optimism hits six year high as technology accelerates growth prospects

Almost half (48%) admitted that technological investment boosted company profits.

Small businesses in Hong Kong believe that the next 12 months will significantly boost their growth prospects as business confidence hit a six year record high, according to a survey from CPA Australia. 

Almost half (48%) of businesses believed that their intensified investment in technology has boosted the company’s profitability.

Businesses have also long joined the digital bandwagon as over half 54.5% of businesses admitted to earning more than 10% of their revenue from digital payment technologies.

“Hong Kong’s small business sector leads the other advanced economies in the survey in technology adoption,” the report noted, as a growing focus on social media, online sales and e-payment technologies is boosting the city’s growth prospects.

Also read: Business confidence hits 13% in Q1 amidst expectation of higher output volume

More than half (59%) of small businesses in Hong Kong expect future growth which is slightly more optimistic than their counterparts in Singapore (40%), Australia (41%), New Zealand, (45%), Malaysia (49%), Vietnam (49%) and Indonesia (51%), with Hong Kong losing only to the combined confidence of businesses in Mainland China at 70%.

Similarly, a third (33.9%) expect to increase their company headcount for the year ahead to accommodate growing demand and larger operations.

“The proposal to cut the profits tax rate to 8.25% for many of Hong Kong’s small businesses and significant public investment in innovation and infrastructure should result in an even more positive year for Hong Kong’s small business,” CPA Australia said.