SME growth hits record 68%

Small and medium-sized enterprises (SMEs) recorded their strongest performance in a decade in 2025, with 68% reporting growth as confidence for 2026 rose to a record high.

CPA Australia’s Asia-Pacific Small Business Survey 2025 to 2026 found that the share of Hong Kong SMEs reporting growth rose from 65% in 2024. The survey also showed 71% expect their businesses to grow this year, whilst 76% expect Hong Kong’s economy to expand.

Solvency improved sharply, with SMEs reporting difficulty paying debts falling to 3% in 2025 from 22% a year earlier.

Only 4% expect to face debt-payment difficulties this year, down from 26% previously, making Hong Kong SMEs the least likely amongst surveyed markets to report solvency concerns.

Technology investment also supported profitability, with 64% of SMEs saying their spending improved profitability in 2025, up from 59% in 2024.

Two in five Hong Kong SMEs invested in artificial intelligence, making it the leading technology investment, followed by customer relationship management software.

Cyber losses eased as digital adoption expanded, with SMEs reporting losses from cyber incidents falling to 43% from 72%. Nearly three in five still expect to face cyber threats this year, above the survey average of 42%.

Rising costs remained a challenge for 29% of Hong Kong SMEs, the second-lowest level amongst surveyed markets. Staff costs were the biggest pressure, rising to 42% from 35%, whilst the share of SMEs hiring additional staff fell to 38% from 42%.