we first place venture capital more formally within a broader institutional framework and use an evolutionary approach (e.g., Murmann, 2003; North, 1990; Whitley, 1992) to trace its emergence and key contextual features that had an impact on its character. We can then understand the current status of investment in early-stage technology ventures, and will highlight the impact of the financial and industrial environment in general and the nature of angel investing in particular. This leads to a discussion of key factors that inhibit the function and performance of Hong Kong’s VC system and our proposals for addressing these. In brief, they include policy recommendations to increase the funds available for smaller but higher-risk investments (i.e., to cover the “equity gap†of new ventures); professionalize and diversify the skills of VC and private equity professionals; professionalize and formalize angel investors and associations; and provide more direct support for nurturing new ventures
Global Entrepreneurship Monitor Hong Kong and Shenzhen 2009 Global Entrepreneurship Monitor Hong Kong and Shenzhen 2004 Global Entrepreneurship Monitor Hong Kong and Shenzhen 2003 Global Entrepreneurship Monitor Hong Kong 2007 Global Entrepreneurship Monitor Hong Kong 2002 Global Entrepreneurship Monitor (GEM) Hong Kong and Shenzhen 2016-17All types of entrepreneurial activities recorded an increase in both cities, which is a sign of a growing economy and of the revival of entrepreneurial spirit of Hong Kong and Shenzhen.
In mid-2016, 9.44% of Hong Kong adult population was engaging in early stage entrepreneurial activities of any kind. This represents a large increase from 3.64% reported in 2009 and significantly reverses the previously recorded slump in entrepreneurial activity of Hong Kong resulting from the global economic crisis. This is driven by the nascent entrepreneurial activity of Hong Kong adult population, which grew +206% since 2009. In Shenzhen, 16.04% reported nascent or new entrepreneurial activities under way, which represents a staggering +234% change compared with statistics from 2009, when the early-stage entrepreneurship rates in the general population were at 4.8%. Contrary to Hong Kong, this growth is driven by baby businesses that were set up in the city within last 3.5 years. Additionally, Shenzhen has recorded a dramatic change in the established business prevalence rates of +398%.
One interpretation of these results may be that while entrepreneurial activities have been on the rise for a few years now in Shenzhen, the intensified interest in startingup in Hong Kong is a fairly new phenomenon.
Entrepreneurship Education in Asia Crouching Tigers, Hidden Dragons Au, K. and Birtch, Thomas T. A. (2010). Social enterprise as an interactive process between entrepreneurs and the community: A social capital perspective. In S.H. Ng, Stephen Y.-L. Cheung, and B. Prakash (eds.), Social Capital in Hong Kong—Connectivities and Social Enterprise: 279-301. Hong Kong: City University Press.