Support for Small and Medium Enterprises

36. The vast majority of Hong Kong businesses are small and medium enterprises (SMEs). They play a crucial role in our economy. Since their introduction, the four Funds set up by the Government to support SMEs have produced good results, particularly in the upgrading of equipment and export marketing. As of mid-December 2003, 27 000 SMEs, of which more than 60% were in the service sector, had successfully applied to the Funds for credit guarantees and assistance. The Secretary for Commerce, Industry and Technology and the Small and Medium Enterprises Committee will continue to monitor the business environment for SMEs and introduce improvements as required.

37. The main concern of SMEs is whether the threshold for entering the Mainland market can be lowered. Now that Hong Kong Permanent Residents with Chinese citizenship can set up individually-owned businesses in Guangdong, we will analyse the actual operation of SMEs and explore the next steps with Mainland authorities.