Opinion | How Hong Kong can help its SMEs make a difference
The government need not blindly back development projects but instead match enterprises who need work with communities who need help
With more courage (or naivety) than fear, I left a well-paid job 16 years ago to found my design practice. Since then, work has never been just a job with regular hours.
From a lone warrior in the beginning to a team of 10 at our peak, the struggle never ended. The company has always operated in a survival mode. Someone who wants to pursue an MBA degree should consider the alternative of starting a small and medium-sized enterprise – they will immediately learn what it means to sink or swim.
An SME owner is often the chief executive officer, chief financial office, chief marketing officer, HR manager and IT technician all rolled into one. He or she is likely the person preparing the deliverables and services, fixing the printer if it is jammed and unclogging the toilet if it is blocked.
However, unlike large corporations that use borrowed monies to invest in prospects with projected revenues to cover interest and principal payments, SMEs need cash flow just to pay salaries, rents, equipment and bills – all of which are expenses without expected returns. Unless an SME owner plans on using a loan mostly to generate revenues, he or she won’t be taking one out. In any case, taking other people’s money to cover overheads to stay in operation would not be sustainable.
