Where does someone look for funding if they are a small business? Business loans are only possible if the company has been in business for some time, but most young businesses are looking to expand and so they need other options to < a href="https://www.investmentnetwork.hk/business-capital">raise business capital.
Hong Kong Government Business Grants
Government grants are another possibility. However, the process of obtaining funding this way is notoriously difficult. With this in mind, there are a number of different grants available in Hong Kong for business funding that might be suitable for a small business or start up.
If you’re a small business that is looking to export overseas from Hong Kong, then the SME Export Marketing Fund (EMF) might be right for your business.
The Innovation and Technology Fund (ITF) is a grant that is available to help businesses deploy and scale up their IT infrastructure. Since this is typically a very costly expense, this type of grant may be useful for certain businesses based in Hong Kong.
In the current climate it can be difficult to secure loans, especially if your business is new. This is where the SME Loan Guarantee Scheme (SGS) comes into play. This scheme is designed to help Hong Kong businesses secure loans from certain lenders.
Finally, there is the Social Innovation and Entrepreneurship Development Fund (SIE Fund) which is a fund that has been designed to help address poverty and social exclusion in Hong Kong. This is suitable to help businesses with seed funding, scaling up and even mentoring.
How to Fund a Hong Kong Business
More common options for business funding in Hong Kong are Angel Investors and Venture Capitalists, both of which will invest significantly higher amounts in your start-up or small business. However, both Angel Investors and Venture Capitalists will want some control of your business and guarantees of a good return on investment in exchange for their money. But at the same time, they offer the experience which could be that factor which allows your business to succeed in the first place.
Remember, the investor is looking to make money just as you are, and so it will be a venture that both sides enter together as a partnership. This means that anyone who invests in a small Hong Kong business will do everything possible to ensure that they are making a sound investment. They will check your business plans thoroughly, and make sure that they themselves believe in your business idea and future plans.
This can be a good idea if you’re an entrepreneur with a good idea, but without the financial means to make your idea come to fruition. If you are based in Hong Kong and are looking to build a business that targets an overseas market, then another benefit of getting on board an angel investor is that the investor may have experience in this area. Many investors from around the world are looking to Hong Kong and China for investment opportunities, so for entrepreneurs in Hong Kong looking to start a business, then this overseas experience can be invaluable.
How To Use The Hong Kong Investment Network
Finding funding for your small business or start-up can take a long time, but the Angel Investment Network can help you make vital contacts in Hong Kong and around the rest of the world with experienced angel investors who are looking to make an investment.