HONG KONG: At just 34 years old, Victor Wong took a bold leap from his career in banking to revitalize an age-old industry: pawning. However, rather than adhering to traditional methods, Wong launched Uncle2, a groundbreaking online pawn marketplace propelled by artificial intelligence. This innovative platform allows users to assess and compare real-time price offers for their possessions directly through the mobile app, positioning Uncle2 as Hong Kong’s first cloud-based pawn service, according to the Hong Kong Science and Technology Park (HKSTP).

"Entrepreneurs have the spirit to challenge norms and improve the lifestyle of our population," Wong emphasizes as he leads a wave of new businesses that are transforming Hong Kong’s entrepreneurial landscape.

A RECORD-SETTING STARTUP BOOM

Uncle2 is part of a remarkable surge in startups within the city, where 2021 witnessed an impressive 4,694 new ventures—a striking 40% increase from about 3,400 in 2020. These enterprises now employ over 17,651 individuals, reflecting a 65% improvement since 2017, as highlighted by a recent report from InvestHK, the governmental body dedicated to business development.

Hong Kong's advantageous position as a strategic entry point to Asia, particularly mainland China, is a significant draw for these burgeoning startups. The city boasts a favorable tax environment, abundant funding opportunities, and a diverse pool of multilingual talent, enhancing its attractiveness to entrepreneurs.

Dominating the new business landscape are technology-centric sectors such as financial technology, information technology, and e-commerce. Additionally, there’s a growing focus on healthcare innovations and sustainability-driven startups.

Interestingly, 72% of startup founders are Hong Kong locals, with significant contributions from foreign entrepreneurs, particularly those from mainland China (40%), the United Kingdom, the United States, France, and Australia.

SUPPORTING ENTREPRENEURSHIP

The Hong Kong government is actively fostering an environment where entrepreneurs can thrive and contribute to economic growth. Various funding initiatives and programs are designed to propel young business-minded individuals into entrepreneurship. For example, incubator programs provide invaluable advisory, technical, and financial assistance, offering up to HK$500,000 (approximately US$65,000) to nurture nascent startups.

One notable beneficiary is GreenPrice, a social enterprise that arose from the creative minds of Terence Hon and his university friends. Initially launching eight years ago, the business sources food and toiletries nearing their expiration dates to offer at reduced prices, while simultaneously combating food waste.

Despite the hurdles along the way, including two years of struggle before reaching profitability, GreenPrice has rapidly expanded from a small location in Kowloon to 13 outlets throughout Hong Kong and a robust online marketplace.

NAVIGATING THE STARTUP CHALLENGE

Despite the promising environment, startups like Uncle2 express the need for more extended support systems and financial backing to navigate the competitive landscape. Wong reports that while Uncle2 received HK$1.3 million in seed funding from HKSTP, securing additional capital has proven challenging. The escalating costs associated with rent, labor, and research and development pose constant obstacles.

"The race for funding in Hong Kong is intense. After receiving initial grants, sustaining the business through the incubation phase can be difficult," Wong admits. He advocates for a government-driven collaborative ecosystem, linking novice entrepreneurs with seasoned investors and mentors.

On the other hand, Hon of GreenPrice reflects on the rewarding nature of entrepreneurship despite the challenges. "Adaptability is crucial. You must remain open to pivoting your business focus and actively engage with your customer base to stay relevant and informed," he advised.

In response to the growing demands, GreenPrice seeks to continue expanding its operations locally and even eyeing international growth in regions such as Singapore. As Hong Kong's startup scene continues to evolve, the resilience and creativity of its entrepreneurs promise a bright future amidst the challenges they face.