A study of growth barriers and mitigation measures for built environment innovative startups: the case of Hong Kong

Abstract

Purpose This study aims to identify the challenges facing innovative startups in the construction environment, recommending possible self-help measures and society support. Design/methodology/approach A comprehensive literature survey informed a questionnaire survey on built environment startups in Hong Kong, followed by a statistical analysis and supplemented by written views of respondents. Validation by experts confirms the survey results. Findings Triangulated findings highlight the problems of conservative policies, investors’ preference on short payback periods, price competition, high operation cost and a lack of promotion channels. The firm’s size and its age differentiate its networking and fund-raising capabilities. Research limitations/implications While the survey samples cover the spread of startups in Hong Kong’s construction/real estate industries well, the number is still limited because the city is relatively compact. The barriers and solutions may be particularly relevant to the built environment there, but also worth noting elsewhere. Practical implications Built environment startups are emerging and their path of development is obscured by industry barriers. While the findings reflect the current situation in Hong Kong, which is a metropolitan city with a vibrant construction market, government policies may present a varying factor in different economies. Conservatism in the construction industry may also be a hindrance, but gradual signs of improvements are seen. Originality/value The recommendations provided may help mitigate the problems of startup growth. They also provide insights into the construction “startup eco-system” worth the attention of policy makers and project managers, who may make better use of the innovative technology and services of built environment startups if the difficulties are alleviated.