Starting and growing a small or medium-sized enterprise (SME) in Hong Kong can be both exciting and challenging, especially when it comes to securing the right financial support. Fortunately, the Hong Kong government and various organizations offer a wide range of funding schemes and grants designed to help local SMEs innovate, expand, and stay competitive in a fast-changing market. There are still many SMEs or startups who don't know that the Hong Kong government helps SMEs with grants and funding to upgrade your technology, strengthen your brand, or explore overseas markets. SMEBro prepared this simple guide for you.
What types of funding and grants are available for SMEs in Hong Kong?
There are several main types of funding and grants available to SMEs in Hong Kong, each designed to support different needs and stages of business.
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Non-repayable grants
These are funds that do not need to be repaid, provided you meet the conditions like: Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), SME Export Marketing Fund (EMF), and Enterprise Support Scheme (ESS).
BUD Fund helps Hong Kong SMEs with business-upgrade, branding, and expansion into Mainland China or ASEAN markets, EMF supports export-marketing activities such as trade exhibitions, business missions and advertising, while ESS grants for research and development, technology adoption, and innovation for local companies.
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Loan guarantees
These are not direct grants, but schemes in which the government provides a guarantee to banks or lenders, making it easier for SMEs to obtain loans on better terms. SME Financing Guarantee Scheme (SFGS) is a scheme where the government backs a proportion of the loan, so that banks are more willing to lend.
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Sector-specific funding schemes
These target specific industries or business needs such as professional services, green technology, and manufacturing upgrades rather than general business expansion. For example, green and sustainable finance grands under the funding support, or a cash-rebate for eligible R&D expenditure.
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Support services and non-financial assistance
Although not exactly grants or funding in cash, many programs provide free or subsidized advisory services, business consultations, training, and networking that help SMEs access other funds or improve viability. For example, the portal Support and Consultation Center for SMEs (SUCCESS).
Are Hong Kong SME grants available to startups or only to established companies?
Yes, grants for SMEs in Hong Kong can be available to startups but eligibility depends on the specific funding scheme and its criteria.
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When startups are eligible
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The general funding portal for the Hong Kong Government lists youth or entrepreneurship-support funds, suggests support at the start-up phase
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The early-stage initiatives like in the Technology Incubation Program (TIP), are eligible for companies incorporated in Hong Kong for less than 2 years. This is a government funding program of the Hong Kong Science and Technology Parks Corporation (HKSTP).
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When startups may not qualify
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Some SME funding schemes still require the applicant to have substantive business operations in Hong Kong, such as SME Export Marketing Fund requires that at the time of application.
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Some grants are aimed at non-listed enterprises registered in Hong Kong with certain employee numbers or business history, meaning a brand-new startup with minimal track record might find it harder to qualify.
What documents are typically required when applying for SME grants and funding?
When applying for SME grants and funding in Hong Kong, applicants are usually required to prepare a comprehensive set of documents to prove their business legitimacy, financial status, and project details. The most commonly required documents are:
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Business registration documents: Business registration certificate issued by the Hong Kong Inland Revenue Department, Certificate of Incorporation for limited companies, Annual Return or Extract of Business Registration to verify ownership and company structure.
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Identity and authorization proof: Copy of HKID or passport of the authorized signatory, authorization letter or board resolution if the signatory is not a company director.
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Proof of substantive business operations in Hong Kong: Recent sales invoices, purchase receipts, bank statements, business tenancy agreement, payroll records, or MPF contribution statements.
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Financial documents: Recent audited financial statements, bank reference letters, project budget plan.
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Project-specific supporting documents: Quotations or invoices, contracts, agreements, MOUs with business partners, marketing materials or proposals, technical specifications or R&D plans.
Can I apply for multiple funding schemes at the same time?
Yes, SMEs can apply for multiple funding schemes in Hong Kong, but with important caveats. For example, you may apply for several schemes under the Innovation and Technology Fund (ITF) umbrella for different projects or purposes. But remember, you cannot apply for the same project or activity under multiple funding schemes and receive duplicate funding. Some schemes explicitly state that if a project has already received or will receive funding from another scheme for the same scope, it won't be considered.
What are the most common reasons applications for SME grants get rejected?
The most common reasons why applications for SME grants or funding get rejected are projects not aligned with the funding scheme's scope, incomplete or inaccurate documentation, duplication of funding, weak project justification or lack of clear deliverables, failure to demonstrate substantive business operations in Hong Kong.
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To improve your chances, ensure your project fits the scheme, you have a complete and accurate documentation, do not actually seek duplicate funding, show clear benefits and outcomes, and proper business presence in Hong Kong.
Where can I get professional help or consultation for SME grant and funding applications in Hong Kong?
Partnering with SMEBrother will be your smartest move! Our expert consultants have deep knowledge of local funding programs like the BUD Fund, SME Export Marketing Fund, and Technology Voucher Program, helping you craft winning applications that maximize your chances of approval.
With SMEBrother's proven track record and dedicated support, you will gain a competitive edge to unlock vital financial resources that fuel your business growth. We provide tailored advice on project alignment, budgeting, and compliance, saving you precious time and avoiding costly mistakes. One-stop solution for all the needs of SMEs who want to thrive in Hong Kong's dynamic market!
