Hong Kong through the eyes of local startups

It was one of the four Asian tigers that witnessed exciting economic growth from the 1960s to the 1990s.

Despite its small market population of over 5.7 million in 1990, Hong Kong found its niche in North Asia, and thrived in finance and marine trade. It also ranked highly as a business-friendly environment for companies to incorporate.

But with the surge of economic activity in China and now businesses bypassing Hong Kong and going straight to China, how does Hong Kong keep itself relevant? Could the startup ecosystem be the new shining light that will direct Hong Kong’s economic future?

To answer these questions, I asked five locally-based entrepreneurs about the changing economic climate in Hong Kong, and the opportunities that arise from it.

Market opportunities

High degree of financial literacy

Operating in a financial hub has its advantages. Mikaal Abdulla observes, “Hong Kong consumers have a very high degree of financial fluency compared to many of their other Asian counterparts.

Hong Kong is a well-established financial hub and its population has a strong understanding of products and services. This is different from emerging markets, which require a great deal of customer education.”

To capitalise on this financial literacy, he co-founded and is CEO of 8 Securities, which is Asia’s first robo-advisor and zero commission stock trading service. Mikaal shares that 8 Securities serves over 60,000 clients through their licensed offices in Hong Kong and Tokyo.

Changing the way secondary education tuition is done

It’s sad that only 18 percent of students in Hong Kong enter a publicly-funded university, a stark contrast to 80 percent in South Korea.

“This has led to a strong demand for after-school tuition,” says Bradley Chiang, co-founder of Snapask. Indeed, according to a University of Hong Kong report, the tuition market is a bustling US$348m.

Having grown up experiencing cram school culture first-hand, Bradley and his founders felt that there should be a better way of personalising learning experiences.

With this differentiation, they built Snapask, which uses elements of social media to bring tutors and students together, where tutors would answer questions students post online.

Challenges faced in this market

Startup scene and funding

Advice to startups