Date
17 December 2017
Hong Kong's low tax rate is one factor that has made the city a leading incubator for great entrepreneurs. Photo: Bloomberg
Hong Kong's low tax rate is one factor that has made the city a leading incubator for great entrepreneurs. Photo: Bloomberg

HK world’s top launch pad for rags-to-riches success

A move to Hong Kong marks a major stop on the road to riches, with the city leading the world in nurturing “great entrepreneurs”, Apple Daily reported Tuesday, citing British think tank the Centre for Policy Studies.

Hong Kong’s low tax rate, minimal government oversight, prestigious universities, and British system of common law makes it an ideal entrepreneurial incubator, the report said.

The city has 2.8 great entrepreneurs for every 1 million residents, while Israel is second with 1.8, followed by the United States with 1.3, according to the analysis. The study defined a great entrepreneur as a person who rises from rags to riches, amassing wealth of at least US$1 billion.

But where once billionaires like Li Ka-shing could rise without a higher education, now the richest entrepreneurs need a good education because they depend mostly on knowledge-intensive industries like information technology and medicine to make a fortune, the report said.

Li Kui-wai, City University associate professor of economics and finance, said the British legal system is a big factor and most economically successful regions, such as the US, Australia and Hong Kong, have close links with the system.

But Chung Kim-wah, assistant professor in applied social sciences at Polytechnic University, cast doubt on the analysis, saying it is more difficult for younger generations to have this kind of success because Hong Kong is now a developed economy.

– Contact HKEJ at [email protected]

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