Date
21 July 2017
About 40 percent of Hong Kong SMEs say cash flow is their main challenge in the coming year. Photo: HKEJ
About 40 percent of Hong Kong SMEs say cash flow is their main challenge in the coming year. Photo: HKEJ

One-third of SMEs lack contingency plans, survey finds

One-third of decision makers in small and medium-sized enterprises (SMEs) have no contingency plans to “future-proof” their business for the next 12 months.

That’s according to a survey by American Express cited by the Hong Kong Economic Journal.

Stephen Pendergas, vice president and general manager of corporate payment services for Hong Kong and Taiwan, said the finding is a “cause for concern”.

Four in 10 respondents said cash flow is their main problem in the coming year.

Nearly three in 10 cited government regulations as their gravest challenge in the next three to five years.

The worries are mainly due to the fact that 75 percent of the respondents came from SMEs that have business connection with mainland China which is grappling with a slowing economy.

The survey was conducted in August and interviewed 453 chief executives, chief financial officers and chief operating officers, among other corporate decision makers.

[Chinese version中文版]

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