Industry Insights

13 June 2014

Hong Kong SME Market Overview

General Overview

According to the Hong Kong Census & Statistics Dept., as at December 2013, there were about 310,000 SMEs in Hong Kong. They accounted for over 90% of local enterprises and provided job opportunities to nearly 1.3 million people, about 48% of total employment when you exclude the civil service.

Import/export trade and wholesale industries dominated the numbers closely followed by the retail industry. In all these industries accounted for over 50% of the SMEs in Hong Kong and represented about half of SME employment.

The importance of the SME sector to the Hong Kong economy has been highlighted by the Government's continued encouragement with the introduction of several measures to support local SME's in the 2014/15 Budget.

At QBE, the SME sector is a key priority and we have been developing products to specifically cater for these businesses. We will also be looking to bring insights from the market to assist our intermediaries in developing their SME portfolio.

Distribution of SMEs (as at December 2013)

At QBE, the SME sector is a key priority and we have been developing products to specifically cater for these businesses. We will also be looking to bring insights from the market to assist our intermediaries in developing their SME portfolio.

Notes:

  1. Figures for total business units and total employment (excluding Civil Service) are not meant to represent the overall situation and the entire labour market due to incomplete coverage of the Quarterly Survey of Employment and Vacancies. Users should bear this in mind when interpreting the respective figures.

  2. Establishments in the Central Register of Establishments with the same main business registration number (BRN) and engaged in activities of the same industry section are grouped into one business unit for the purpose of calculating the number of SMEs.
  3. Persons engaged include:
    1. individual proprietors, partners and persons having family ties with any of the proprietors or partners and working in the business unit without regular pay, who are actively engaged in the work of the business unit for at least 1 hour on the survey reference date;
    2. full-time salaried personnel/employees directly paid by the business unit and working directors of limited companies, both permanent and temporary, who are either at work (whether or not in Hong Kong) or temporarily absent from work (viz. those on sick leave, maternity leave, annual vacation or casual leave, and on strike) on the survey reference date; and
    3. part-time employees and employees on night/irregular shifts working for at least 1 hour on the survey reference date.
  4. Economic activities not covered mainly include agriculture, forestry and fishing (entire industry section); construction (other than construction sites); hawkers and retail pitches (other than market stalls); taxis, public light buses, and part of goods vehicles and inland freight water transport; monetary authorities and self-employed insurance agents with no business registration; renting and leasing of recreational and sports goods; public administration (entire industry section); work activities within domestic households; activities of extraterritorial organisations and bodies; religious organisations, authors and other independent artists, and some social and personal services
  5. For the construction industry, business units refer to construction sites while persons engaged refer to manual workers at construction sites only.
  6. Accommodation services cover hotels, guesthouses, boarding houses and other establishments providing short term accommodation.

All figures are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0.
Source: Census and Statistics Department

For more details, please visit: http://www.success.tid.gov.hk/eindex.html