Why 2 Hong Kong entrepreneurs decided to move their start-ups over mainland China border
- Biotech firm founder Elvis Yu and AI content company founder Wang Cong explain why they moved to Qianhai, but Hong Kong is key to plans
Hong Kong has the edge to take products global but must roll out additional preferential policies and expand its talent pool to attract businesses, two start-up founders who moved their business across the border due to manpower constraints have said.
Elvis Yu Guangtao, who founded biotechnology firm Inspro Science in 2019, had won a start-up competition organised by the Trade Development Council as he was planning to build the firm. But he ultimately chose to set up his business in Qianhai in Shenzhen instead, owing to difficulties in finding suitable talent in Hong Kong.
His company produces fertiliser and pet food using insect protein and intends to explore its industrial uses as a sustainable alternative source of nutrients.
“This industry is quite unique, as we need to integrate skills across disciplines from biotechnology to automation and artificial intelligence,” Yu said. “Talent in these areas is relatively lacking in Hong Kong or it’s harder to find suitable candidates, not to mention the costs to do so.”
But entrepreneurs who have made the move, such as Yu, were not abandoning Hong Kong, as they felt the city remained attractive due to its ability to connect their products with a global market, but Qianhai in Shenzhen also had much to offer.
Qianhai is one of four special economic zones, in addition to Nansha in Guangzhou, Hengqin in Zhuhai and Hetao in Shenzhen, located in the Greater Bay Area, Beijing’s plan to develop Hong Kong, Macau and nine cities in Guangdong province into a hi-tech economic powerhouse by 2035.
Qianhai, Nansha and Hengqin have been offering preferential tax policies, legal frameworks and streamlined application procedures to attract investment and businesses from Hong Kong, Macau and overseas.
Yu said the lower rent and cash subsidies to establish a business drew him to set up his headquarters in the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub.
Wang Cong, co-founder and chief product officer of 2077.Ai, a start-up that develops lifelike avatars with artificial intelligence to provide customised services, also found the preferential tax measures in Qianhai appealing.
A graduate of a master’s programme in environmental engineering at Hong Kong Metropolitan University, Wang also faced problems finding talent when establishing his company.
“When building 3D models, we need an array of professionals, from those who can build the models to designing actions, colour and engineers. Only places with gaming companies have such talent, as these posts would not exist without them,” he said.
While Wang opened his office in Qianhai, he said Hong Kong remained attractive as a base for the company to expand internationally.
“While Qianhai may have more talent suited for research and development, I think Hong Kong mainly has more international talent,” he said. “This city has always been diverse and open, and this is what we look forward to the most, from talent to capital transfers and aviation.”
Yu agreed and said he has already opened an office in the financial hub and was planning to apply for an acceleration programme offered through the Hong Kong Science Park.
The programme allows start-ups to secure up to HK$4.8 million in funding, meet investors and receive business support, from product trials to executive coaching.
“The nearby Dongguan has a great supply chain for smart hardware, that’s why we chose to come to Qianhai. After Qianhai, we are now beginning to approach overseas markets and go international, hence we are moving our international headquarters to Hong Kong,” Yu said.
The entrepreneur added that Hong Kong also excelled in biotechnology research and development, with advanced laboratories at the Science Park, while fintech and software development were other strengths the city possessed.
Fan Guoliang, deputy technology and innovation division chief of the Qianhai Administrative Bureau, said the area was developing into an international talent hub.
“There are 155 national and provincial level [innovative businesses] in Qianhai, most of them being businesses. Among them, around 30 per cent relied on Hong Kong-funded enterprises to be established,” Fan said.
The official added that among 1,195 start-ups incubated at the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub, 774 came from Hong Kong, Macau and overseas.
