GOVT SUPPORTS SMES' TRANSFORMATION

The Government’s staunch support for local small and medium enterprises (SMEs) has long been a cornerstone of its economic strategy – and no better illustration of this approach is offered by the Digital Transformation Support Pilot Programme. Launched in late March, the programme has already supported more than 600 applicants in accessing ready-to-use basic digital solutions.

Operated by Cyberport with a funding allocation of $500 million from the Government, the pilot programme serves to assist SMEs in the retail and food & beverage sectors in expediting their digital transformation through the application of ready-to-use basic digital solutions. These solutions fall into three categories: digital payment systems and shopfront sales; online promotion; and customer management systems.

The programme operates on a one-to-one matching basis, offering funding support of up to $50,000 for each eligible enterprise to acquire one digital solution package from the programme’s pre-assessed solution list.

One Hong Kong-style western restaurant said it had implemented a ready-to-use electronic ordering and payment system thanks to the programme, allowing it to catch up on the trend for electronic payments. The system enables customers to order and pay directly with their mobile phones, which improves operational efficiency and the customer experience.

Meanwhile, a retail store that sells dried seafood wanted to expand its business online. Through the pilot programme, it has adopted a ready-to-use online point-of-sale system, allowing it to attract more customers from other districts and to enhance and transform its business by sending proactive promotional messages to customers.

Cyberport has been active in promoting the programme to the relevant industries. It conducts online publicity activities and hosts regular briefings for SMEs to help them identify suitable digital solutions which satisfy their business needs and budget requirements.

Separately, in view of the rapid growth of the Mainland’s electronic commerce (e-commerce) sector in recent years, and the enormous potential of domestic sales, the Government is also stepping up its support for local SMEs to develop e-commerce business in the Mainland.

The Government launched E-commerce Easy, under the Dedicated Fund on Branding, Upgrading & Domestic Sales on July 15. The scheme allows enterprises to make flexible use of maximum funding of $1 million, within a cumulative funding ceiling of $7 million, to implement e-commerce projects. Measure that can be funded include establishing online stores, placing advertisements on third-party online sales platforms, incorporating online payment options on operators’ websites, and more.

Additionally, in 2016, the Government launched the Technology Voucher Programme (TVP), which offers subsidies under the Innovation &Technology Fund for local entities to adopt technological services and solutions that can improve productivity or upgrade their business processes.

The programme provides funding for projects, with the Government matching sums spent by applicants on a 3:1 basis. Subject to a cumulative funding ceiling of $600,000, applicants may receive funding for up to six projects.

One beauty salon said it had used funding from the scheme to upgrade its online sales and booking system, which it uses to manage customer bookings and its inventory of beauty products. The improved system allows the firm to analyse sales trends and formulate better market strategies.

Meanwhile, a toy shop has used TVP funding to transform its point-of-sale and enterprise resource planning systems. These now integrate data from physical stores and online shops, giving employees an accurate picture of the firm’s product inventory. The systems also record order details, and track the status of payments and logistics, making it easier for employees to arrange deliveries and respond to customer inquiries.

The programme has received an enthusiastic response form the industries involved. As of the end of July this year, over 39,000 applications had been received, with SMEs making up more than 95% of successful applicants.

To encourage more SMEs to make use of government funding for the purposes of digital transformation, the Innovation & Technology Commission and the Productivity Council hold “TVP Tactic Days”, and the council organises regular briefing sessions for potential applicants.

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