Survey: Over 70% of HK startups never apply for government funding

Over 70% of eligible Hong Kong startups never apply for government funding, despite nearly half (49%) of those who do apply achieving moderate to high success rates. This results in an estimated loss of HK$12.6 million in potential funding, a survey finds.

The Hong Kong government Startup Funding: Applicant Satisfaction & Success survey, conducted by Aspire, profiled 118 founders across diverse industries, enquiring about their knowledge, perception, and experience with government funding.

According to the survey, about 71% of Hong Kong founders never apply for government funding, despite 86% being at the prime eligibility stage. This awareness gap translates into more than HK$12.6 million in foregone capital, a conservative estimate based on average grant sizes and typical success rates.

Among the barriers preventing founders from accessing government funding, about 51% of non-applicants cite concerns about complexity, with 33% preferring private funding due to its straightforward nature, while 18% describe government applications as “too complex” without ever attempting them.

Beyond this, approximately 29% assume ineligibility and self-disqualify from government funding altogether, while 20% report an information gap. Among this group, 51% spend over an hour each month researching opportunities, 46% struggle to find consolidated information in one place, 33% seek clarity on unwritten selection criteria, 23% find it difficult to understand timeline expectations, and 10% are completely unaware of available programmes.

On the other hands, about 50% are diversifying their funding sources in response to global tensions.

However, the report reveals a counterintuitive truth that challenges common assumptions about government funding accessibility, that such funding is a long shot reserved for well-connected or perfectly positioned ventures. Among the founders who submit applications, 49% achieve moderate to high success rates, 28% achieve high success rates, and 23% are rejected.

Successful applicants employ distinct strategies, with 66% dedicating 10% of their time to application administration and 69% leveraging AI to enhance their submissions. Other effective approaches include strategic use of available channels, early preparation with clear timeline planning, and maintaining well-defined objectives throughout the process.

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