With an impressive increasing number of start-up businesses in 2019, Hong Kong has built the most suitable ecosystem for creating start-up business, and at the same time, Hong Kong has ranked the fifth position in global fastest-growing ecosystem giving birth to over 2,000 start-ups according to resources.
According to the latest statistics from InvestHK, compared with the number of start-ups in 2017 (2,229), the number of start-up business in Hong Kong in 2019 has been sky-rocketed to 2,625 with a 146% increase. The research team has concluded that the growth of Hong Kong start-up ecosystem has been tremendous in recent years backed by the technological innovation and the support from the government.
The scale of start-up businesses in Hong Kong keeps increasing at a fast pace while the volume and quality of co-working spaces in Hong Kong are both improving at the same time. You may be curious with this coincidence, scroll down and you may know why.
Starting up in Hong Kong
Further to the survey conducted by startmeup.hk, over 60% of start-up founders are local Hongkongers who are passionate about initiating their own company in their home. In addition, after years of changing of business model, the major types of start-up business nowadays in Hong Kong are referred to Fintech, E-commerce (logistics technology), senior consultancy services as well as information technology. As the modern business model and the technology are closely related, adapting it into existing business model will certainly be the developing direction for start-ups in the upcoming years, especially in Hong Kong.
Following up great models
2019 has been a golden year for start-ups in Hong Kong while multiple local start-up businesses have been contributing not just to our society but also to the world. Hong Kong, which has also been well-known for its solid legal environment and low tax rate attraction is regarded as the freest economy on the planet. Given such a well-built ecosystem, the generous support from the large corporation and the government for start-up business further accelerates its development here. Here are some great role models of start-ups developing exceptionally well around us:
With the diversified and flexible logistics solution technology, GoGoVan is leading the start-up delivery market in Hong Kong for goods and pets. The advanced and user-friendly online booking platform – Klook is also continuing their great performance in the field in 2019. Founded in 2017, Oriente has maintained its impressive performance for providing the financial solution with technology and date-science. Other than the start-up from major industries, Snapask, an online education technology company or Presslogic, a social media expert with digital technology are developed to suit the newly growing markets. No matter what business you are starting, just get yourself with an amazing and mind-changing idea, you can make your imagination come true inside Hong Kong’s ecosystem.
Connecting Start-up and Co-working Space
We have talked before in our previous blog “GAME CHANGING NATURE: THE RISE OF CO-WORKING SPACE IN HONG KONG” about the close relationship between start-up business and co-working space. Not just looking for a cheaper and more flexible rental option for young growing business, but networking is also another important benefit for a start-up founder. Co-working space is with no doubt a place full of possibilities and allowing everyone to make an impact there. Based on this market-changing concept, it is observed that co-working space is now becoming the mainstream in the office market and the popularity of traditional office is declining slowly.
Apart from the verbal expression, the flexible workspace is also proving its own value in the market. Together with the increase in the volume of start-up business in Hong Kong, the investment in co-working business becomes more aggressive and frequent, including the expansion of The Great Room (Singapore based) into Hong Kong and the fifth location opened by theDesk in Sheung Wan in early 2019. Taking over of 400 desks in WeWork by HSBC and the co-working space – Blueprint opened by Swire Properties in Quarry Bay, large multinational companies have also realized the potential of co-working business and break down their business into smaller departments so as to fit it into the co-working space. The trend of co-working space is coming to the city in an unstoppable manner and you may start to look for the most suitable one for yourselves now.
The nature of co-working space perfectly matches with the start-up business while co-working space and start-up business are interdependent with each other. The rapid development of the market will certainly draw more attention in co-working space that is beneficial to both the start-up and the existing corporations. Taking chances to discuss with a group of matured business advisors in the space, young companies can possibly look for collaboration with them to get a fast pass to the market. Those who have been great in the market can search for fresh ideas and young work-force in the space to enrich their business. Different players in the market can also find their own advantages via a co-working space in Hong Kong.
Hong Kong is a large ecosystem for embracing these new concepts while co-working spaces there is a more dedicated one for those start-ups to grow confidently.
Developing Co-working Space
Although co-working space is possibly the future of work, this kind of business model takes a longer time, approximately two to three years to justify its profitability which is largely influenced by the size, nature, and management of different co-working business. However, it is foreseeable that the market is still developing rapidly with confident, customers just become more careful and selective when they are finding their next office. Consequently, the core competency of co-working spaces is no longer limited to the price and location but also the service provided to your clients.
Catching up with the development of co-working space, more advanced and specific office management software are coming out to serve the market for providing systematic office management. Since the co-working business is initially built around people who are the heart of sharing economy, a more rigorous recruitment process for the most suitable employee can significantly improve the service quality of the space where most of the services are done in face-to-face. A co-working space should always make their tenants feel homey and cozy so that they can be focused and perform expertly. Proposing a new brand, opening another location or even building a co-working chain, co-working business managers are constantly spotting strategies to enrich their own co-working community. Hence, members of the space can be benefitted from the diversity of the community connecting people from different professions, nationalities and cultural background.
A co-working space with a trustworthy co-working space management system, reliable administrative support and a better-organized community for networking should be the right choice for your future.
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