OREANDA-NEWS. Small- and medium-size enterprises (SMEs) in Hong Kong remain broadly optimistic towards export prospects amid global economic volatility, according to a recent global research study* commissioned by FedEx Express (FedEx), a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company.

Of the local SMEs, eight out of ten (82%) saw steady or increased export over the past year, generating an average of HK$9.056 million in revenue, which accounts for more than two-thirds of their overall revenue. More than a third (35%) even forecast an average double-digit growth of 17% in the year ahead. SMEs are particularly bullish on intra-regional export, with half (49%) anticipating 17% revenue growth on average.

"As the study* shows, the SME sector continues to demonstrate strength and perseverance as they steadily weather the macroeconomic environment," said Anthony Leung, managing director, FedEx Express, Hong Kong and Macau. "Today’s economy is changing faster than ever. It is imperative that businesses eye not only their home market but also the world to expand income sources and build resilience in good and bad times. One essential way to do so is e-commerce as it opens up a world of opportunities for businesses large and small."

The study* reveals the sense of optimism among the SME community is largely fueled by e-commerce potential. In Hong Kong, eight out of ten (80%) SMEs are already engaged in e-commerce, generating an average revenue of HK$2.677 million a year. Their confidence in e-commerce continues to increase: more than two-fifths (43%) foresee growth in e-commerce income in the coming year.

Despite this, Hong Kong is lagging behind in e-payment development, leading to relatively slow mobile commerce (m-commerce) and social commerce penetration. Currently, 56% and 73% of local SMEs are generating revenue through m-commerce and social media transactions respectively, versus a much higher proportion – 94% and 88% respectively – in neighboring mainland China. To maintain its competitiveness, it is crucial for the city to catch up on mobile payment and peer-to-peer (P2P) solutions through government policy, technology and interbank infrastructure.

In fact, 39% of Hong Kong SMEs cited increasing international competition as a top challenge. To navigate this new competitive landscape, SMEs are looking to logistics providers. In Hong Kong, 95% of SMEs agree logistics plays an important part in their export business. An efficient supply chain is vital to enhancing the customer experience and managing costs, thus helping win customers and improve bottom lines.

The independent study* entitled "Global Trade in the Digital Economy: Opportunities for Small Businesses" was conducted by Harris Interactive on behalf of FedEx to provide valuable insights into global export opportunities and challenges facing SMEs. Completed in September 2016, the results are based on interviews with 500 senior executives of Hong Kong SMEs, among a total of 9,000 globally in 17 markets[1] including six in Asia Pacific.