September 26, 2025

Your ultimate guide to SME funding programmes in Hong Kong

Written by
Galih Gumelar
Last Modified on
September 26, 2025

Summary

  • The Hong Kong Government provides extensive financial support to SMEs through various funding schemes designed to boost innovation, market expansion, and overall competitiveness.
  • Key schemes include the SME Export Marketing Fund (EMF) offering up to HK$1,000,000 for overseas promotion and the BUD Fund providing up to HK$7,000,000 for branding and expansion into Mainland China and FTA markets.
  • Most funding operates on a reimbursement basis, meaning your business must pay for expenses first and maintain meticulous records for claims and potential audits.
  • Properly managing secured funds is critical for success. Using a business finance platform like Aspire helps streamline expense tracking, simplify reporting, and ensure compliance.

Scaling your business in Hong Kong presents a unique set of challenges, from managing tight cash flow to financing overseas expansion and keeping pace with technological change. But what if the capital you need to overcome these hurdles is within reach?

The Hong Kong Government offers a wealth of SME funding schemes specifically designed to help small and medium enterprises like yours thrive. From digital transformation projects to breaking into new export markets, these grants and support measures can be the catalyst for your next phase of growth. This article serves as your strategic roadmap, demystifying the most impactful funding options and guiding you on how to successfully secure them.

Overview of SME funding support in Hong Kong

The Hong Kong Government's commitment to fostering a vibrant business environment is evident in its wide array of funding support programmes. Recognising the challenges SMEs face—from securing capital for technological upgrades to financing overseas expansion—these schemes are designed to be targeted, accessible, and impactful. The government has committed over HK$100 billion to promote innovation and technology (I&T) development alone, with a significant portion earmarked to support the city's startups and SMEs 1.

Key government bodies, primarily the Trade and Industry Department (TID) and implementation partners like the Hong Kong Productivity Council (HKPC), are at the forefront of administering these funds. Their role extends beyond just disbursing finances; they provide a support structure that includes advisory services, workshops, and comprehensive online resources to help SMEs navigate the application process 2,3.

Whether an enterprise is looking to participate in its first international trade fair, develop a sophisticated branding strategy for the Mainland China market, or undertake a groundbreaking research and development project, there is likely a government fund designed to support its ambition. These measures are pivotal in helping SMEs overcome financial hurdles, allowing them to invest in substantive business operations, drive technology transformation, and ultimately achieve sustainable growth 2.

What's the purpose of government SME funding support?

While the immediate effect of government funding is financial relief, its underlying purpose is strategic and multifaceted, aimed at strengthening the entire economic fabric of Hong Kong. The core objectives behind these extensive support schemes include:

1. Enhancing overall competitiveness

In a globalised market, SMEs must constantly evolve. Funding support allows them to invest in modern equipment, optimise operational workflows, and adopt international best practices, thereby sharpening their competitive edge against larger, more established players 2.

2. Driving innovation and digital transformation

The future is digital, and the government is actively encouraging SMEs to embrace this shift. Funds are often designated for developing e-commerce platforms, implementing enterprise resource planning (ERP) systems, adopting cloud computing, and enhancing cybersecurity, ensuring that Hong Kong's businesses remain at the forefront of technological advancement 1.

3. Facilitating market expansion

Many SMEs have products and services with global appeal but lack the resources to explore new territories. Funding schemes like the SME Export Marketing Fund (EMF) and the BUD Fund directly address this by subsidising costs related to export promotion activities and developing sales channels in Mainland China and other free trade agreement (FTA) markets 3.4.

Stimulating economic growth and job creation

By fuelling the growth of individual SMEs, the government fosters a ripple effect across the economy. A successful, expanding business hires more employees, engages more local suppliers, and contributes more to the city's GDP. This grassroots approach to economic development is crucial for long-term prosperity 2.

De-risking private investment

Many growth-oriented activities, such as R&D or entering a new market, carry inherent risks. Government funding, often provided on a matching basis, effectively lowers the financial risk for the SME, encouraging them to undertake ambitious projects they might otherwise have avoided 5,6.

5 popular SME funding schemes in Hong Kong

Navigating the landscape of government funding can be daunting. To simplify the process, here is a detailed breakdown of 5 of the most popular and impactful schemes available to Hong Kong SMEs.

SME export marketing fund

The SME Export Marketing Fund, administered by the Trade and Industry Department (TID), is a cornerstone of support for businesses looking to expand their reach beyond Hong Kong. Its primary goal is to encourage SMEs to participate in export promotion activities to secure new orders and explore overseas markets 4,7.

  • Purpose: To provide financial assistance to SMEs for participating in trade fairs, exhibitions, business missions, and local trade events that are primarily targeted at overseas markets.
  • Eligibility: Applicants must be non-listed Hong Kong enterprises with a valid Hong Kong business registration certificate and have substantive business operations in Hong Kong.
  • Funding Scope: The fund covers a wide range of export promotion activities, including:
    • Participation fees for trade fairs and exhibitions outside Hong Kong.
    • Costs for virtual trade exhibitions.
    • Placement of advertisements in trade publications and digital platforms, mainly targeting export markets.
    • Development and enhancement of company websites or mobile applications geared towards export promotion.
  • Funding Amount: The EMF provides funding on a 1:1 matching basis. An enterprise can receive a grant covering up to 50% of the total approved expenditure for a given activity. The cumulative funding ceiling per enterprise is HK$1,000,000, and the grant for each application is capped at HK$100,000.
  • How to Apply: Applications can be submitted directly through the TID’s online e-Form system, making the process streamlined and accessible.

Branding, upgrading and domestic sales (BUD Fund)

The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) is a powerful tool for enterprises aiming to enhance their competitiveness and develop business in Mainland China and other economies that have signed Free Trade Agreements (FTAs) or Investment Promotion and Protection Agreements (IPPAs) with Hong Kong 3,8.

  • Purpose: To assist enterprises in undertaking projects that develop brands, upgrade and restructure their operations, and promote sales in the designated markets, thereby capturing the vast opportunities they present.
  • Eligibility: All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance with substantive business operations in Hong Kong are eligible to apply.
  • Funding Scope: The fund is split into two programmes: the "Mainland Programme" and the "FTA and IPPA Programme." Approved projects can cover a wide spectrum of activities, such as:
    • Branding: Brand strategy development, brand building, and promotional campaigns.
    • Upgrading: Introduction of new technology, automation, product development, and management system enhancement.
    • Domestic Sales: Developing new sales channels, participating in domestic exhibitions, and creating marketing materials for the target markets.
  • Funding Amount: The BUD Fund operates on a 1:1 matching basis, covering up to 50% of the total approved project costs. The cumulative funding ceiling per enterprise has been substantially increased to HK$7,000,000, allowing for long-term, multi-faceted projects.
  • How to Apply: The Hong Kong Productivity Council (HKPC) acts as the secretariat for the BUD Fund, and applications must be submitted through its dedicated online portal.

Enterprise Support Scheme (ESS)

Part of the government's broader Innovation and Technology Fund (ITF), the Enterprise Support Scheme (ESS) is designed to encourage private sector investment in research and development (R&D). It targets companies of all sizes, including SMEs, that are ready to embark on innovative technology projects 5,9,10.

  • Purpose: To provide dollar-for-dollar funding support for companies to conduct in-house R&D projects with the aim of developing new products, services, or processes that are innovative and commercially viable.
  • Eligibility: The scheme is open to companies incorporated in Hong Kong. The project must be conducted primarily within Hong Kong.
  • Funding Scope: The ESS supports R&D projects across various technology sectors. The project should demonstrate a high degree of innovation and have a clear path to commercialisation. Costs can include manpower, equipment, materials, and other direct expenses related to the R&D work.
  • Funding Amount: The ESS provides a maximum funding of HK$10 million per approved project on a 1:1 matching basis. The company is required to contribute no less than 50% of the total project cost.
  • How to Apply: Applications are managed by the Innovation and Technology Commission (ITC) and can be submitted through the Innovation and Technology Commission Funding Administrative System.

SME Financing Guarantee Scheme (SFGS)

Unlike a direct grant, the SME Financing Guarantee Scheme (SFGS) addresses a more fundamental challenge for SMEs: access to bank loans. Operated by HKMC Insurance Limited (HKMCI), the scheme provides government guarantees to lending institutions, encouraging them to approve loans to SMEs that might otherwise be considered too risky 6.

  • Purpose: To help SMEs and non-listed enterprises obtain financing from participating lenders for meeting their business needs, including acquiring business equipment or financing working capital.
  • Eligibility: The applicant must be a business registered in Hong Kong with substantive operations and must not be a listed company. It should also have a good credit history.
  • Funding Scope: The scheme offers several guarantee products, with the most common being the 80% and 90% Guarantee Products. These guarantees cover 80% or 90% of the loan amount, respectively, significantly reducing the lender's risk. The loans can be used for general working capital, purchasing equipment, or other business-related investments.
  • Funding Amount: For the 80% Guarantee Product, the maximum loan amount is HK$18,000,000 per enterprise. The guarantee periods can be up to 7 years.
  • How to Apply: Enterprises don't apply directly to the government. Instead, they approach one of the many participating lending institutions (banks and financial institutions) in Hong Kong, which will then process the loan and the guarantee application with HKMCI.

Trade and Industrial Organisation Support Fund (TSF)

The Trade and Industrial Organisation Support Fund (TSF) takes a different approach by funding projects implemented by non-profit-distributing organisations. While individual SMEs cannot apply directly, they are the ultimate beneficiaries of the projects, which aim to enhance the competitiveness of entire industries or sectors 11.

  • Purpose: To provide financial support to non-profit-distributing organisations like trade associations, chambers of commerce, and professional bodies to undertake projects that benefit Hong Kong's overall industrial and commercial sectors.
  • Eligibility: Applicants must be registered non-profit-distributing organisations.
  • Funding Scope: The projects supported are diverse and can include industry-wide seminars and workshops, best-practice development guides, market research studies, participation in overseas promotional events for a whole industry delegation, and the establishment of testing and certification platforms.
  • Funding Amount: The fund will cover a maximum of 90% of the total approved project cost, or up to HK$5 million, whichever is lower.
  • How to Apply: Eligible organisations can submit their applications to the Trade and Industry Department (TID).

How applications are evaluated

To strengthen your application, you need to understand the key factors that reviewers look for. While each funding type has its own specific requirements, in general, applications are evaluated based on the following criteria. You can use these criteria as a checklist before submitting an application for one of the available funding programmes

Application scorecard (Key Evaluation Criteria):

  • Project innovation and uniqueness: Does your idea stand out from the competition or existing solutions?
  • Commercial feasibility and market potential: Can the project realistically establish itself on the market and generate sustainable demand?
  • Expected financial return on investment (ROI): Are the expected returns or benefits reasonable, measurable and aligned with the funding objectives?
  • Team’s ability to execute: Does your team have the right experience, skills and resources to deliver results?

Evaluate your project against these points before submitting. A clear, well-documented proposal that is aligned with these criteria is more likely to be approved.

Tips for managing government funding effectively

Securing government funding is only half the battle; managing it effectively is crucial for project success and to ensure compliance. Here are some essential tips for SMEs 4,8:

  • Align Your Project with the Fund's Objectives: Before applying, thoroughly read the guidelines and ensure your project's goals are perfectly aligned with the fund's purpose. A proposal to use the Export Marketing Fund for local brand building, for instance, will be rejected. Tailor your application to demonstrate a clear understanding of the scheme’s intent.
  • Maintain Meticulous Records: Government funds are subject to strict audits. From day one, create a dedicated filing system (both physical and digital) for all project-related documents. This includes all invoices, receipts, payment proofs, bank statements, contracts, and progress reports. Failure to produce proper documentation can result in the funding being rescinded.
  • Understand the Reimbursement Model: Most government funding schemes operate on a reimbursement basis. This means your company must have sufficient cash flow to pay for the project expenses upfront. You will only be reimbursed after submitting proof of expenditure. Factor this into your financial planning to avoid liquidity issues.
  • Create a Detailed and Realistic Budget: Your application must include a detailed budget breakdown. Be realistic and thorough. Underestimating costs can leave your project underfunded, while overestimating may raise red flags. All expenditures must be justifiable and directly related to the project scope.
  • Adhere to Timelines and Reporting Requirements: Approved projects come with specific milestones and reporting deadlines. Keep track of these dates and submit all required progress and final reports on time. Proactive communication with the funding body is key if you foresee any delays or changes to the project plan.

Manage your business fund effectively with Aspire

Once you have successfully secured government funding, the focus shifts to execution and financial management. This is where modern financial tools can make a significant difference. Managing a government-funded project requires a high degree of transparency and control, especially given the reimbursement model and the need for pristine record-keeping.

This is where Aspire’s Business Account helps you take control of your finances. With Aspire, you can:

  • Send and collect payments directly in USD, GBP, EUR, and HKD with multi-currency accounts
  • Send and receive money in over 30 currencies with competitive FX rates
  • Track and monitor expenses in real time with a centralised dashboard, ensuring actual costs stay within budget
  • Earn 1% cashback on SaaS and digital marketing subscriptions with corporate cards

Whether you're starting up or scaling your business in Hong Kong, Aspire gives you the confidence to manage your finances efficiently and focus on growth.

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Frequently Asked Questions

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Sources:
  • Trade and Industry Department - https://www.smefund.tid.gov.hk/english/tsf/files/TSF_Important_Notes_to_Applicants_Eng_12_2024.pdf
  • Innovation, Technology and Industry Bureau - https://www.itib.gov.hk/assets/files/sales%20kit_Eng_20231229.pdf
  • Trade and Industry Department - https://www.smelink.gov.hk/en/web/sme-portal/home.html
  • Hong Kong Productivity Council (HKPC) - https://www.bud.hkpc.org/en/home
  • Trade and Industry Department - https://www.tid.gov.hk/en/our_work/support_for_trade_industry/emf.html
  • Innovation and Technology Commission - https://www.itf.gov.hk/l-eng/ess.asp
  • HKMC Insurance Limited - https://www.hkmc.com.hk/files/product_shortcut/6/74/eng/SFGS%20Factsheet_Eng%20eff%2018%20Nov%202024_Final%20clean.pdf
  • Trade and Industry Department - https://eform.cefs.gov.hk/form/tid001/en/
  • HKPC - https://mainland.bud.hkpc.org/sites/default/files/download/Mainland-Guide-to-Application-EN_202503.pdf
  • Innovation and Technology Commission - https://www.itf.gov.hk/filemanager/en/content_30/FAQ-EN_20230324.pdf
  • Innovation and Technology Commission Funding Administrative System (ITCFAS) - https://itcfas.itf.gov.hk/
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Galih Gumelar
is a seasoned writer specialising in macroeconomics, business, finance and politics. With a writing history at CNN Indonesia, The Jakarta Post, and various other reputed organisations, Galih leverages his broad range of experiences to create insightful resources for those wanting to start a business.
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