The context of entrepreneurship in Hong Kong

Abstract

PurposeThe context of Hong Kong has nurtured numerous small‐ and medium‐sized enterprises (SMEs) in which the owner/managers have exhibited rather consistent set of characteristics over decades despite shifts in the industrial structure. The purpose of this paper is to investigate how such characteristics can sustain in different industrial environments.Design/methodology/approachBy using the competency approach on a sample of 153 SME owner/managers in the wholesale trade and IT services industries, we conducted hypothesis testing on comparing first, the overall rankings of ten competency areas for SME owner/managers, and second, the ratings of individual competency areas between the two industries.FindingsWhile there are consistent patterns of competencies across these two contrasting industries in Hong Kong, the owner/managers in IT services industry have significantly higher ratings in innovative, strategic and learning competencies than those in the wholesale trade industry.Research limitations/implicationsEntrepreneurial competencies are not only stimulated or sharpened by the requirements of different industrial environments, but also rooted in the common socio‐cultural background of the owner/managers.Practical implicationsWith the ever closer economic and socio‐cultural integration with China, a completely new pattern of entrepreneurial competencies may be required in a new context of entrepreneurship in Hong Kong.Originality/valueThe application of the competency approach allows us to investigate the respective impacts of industrial and socio‐cultural factors in the development of entrepreneurial characteristics, particularly those about Chinese SME owner/managers in Hong Kong.

Determinants of Entrepreneurial Competencies Development in Small and Medium Enterprises

“…Based on the existing literature, the major factors affecting the development of entrepreneurs' competencies in SMEs is the demographic variables such as the education level attainment by entrepreneurs, the training received before set-up the business, the training received after entrepreneurs running the business, and working experience. Man and Lau (2005) urged that entrepreneurial competencies can be improved with training and education. However, another scholar, Ahmad (2007) claimed the education only significant in effect of education on entrepreneurial competencies in the comprehensive model in SMEs, and training does not affect the development of entrepreneurial competencies.…”

“…For working experience, study was done by Ahmad (2007) in Malaysia and Australia stated that working experience is not significant with entrepreneurial competencies development. However, Man and Lau (2005) argued that trait-based components of entrepreneurial competencies (such as trait, social role, self-image, attitude, personality) take a longer time to develop and more difficult to change due to individual socio-cultural background of the or early experience. However, the skill-based components of entrepreneurial competencies (skill and knowledge) are easier to instill through working experience.…”

“…Entrepreneurs with more training after business start-up will report possessing greater entrepreneurial competencies. Man and Lau (2005) urged that entrepreneurial competencies can be improved with training. This view was contradicted with a study done by Ahmad (2007) in Malaysia and Australia found that training business start-up does not significantly affect the development of entrepreneurial competencies among the entrepreneurs.…”

“…The success of SMEs depends heavily on the owner/manager. An empirical study done by many researchers found that higher entrepreneurial competencies possessed by the owner/manager lead to better business success in SMEs (Man & Lau, 2005;Ahmad, Ramayah, et al, 2010;Nasuredin, Halipah, & Shamsudin, 2016). For a company in the services sector, entrepreneurial competencies; interpersonal, learning, strategic, and opportunity were identified have a relationship with firms' success (Tatar, 2013).…”

Business University Student Entrepreneurial Competencies: Towards Readiness for Globalization

“…According to [34] the success and failure of the business depends heavily on the person's competencies. Entrepreneurial competencies consist of components that are extremely rooted in a person's background (traits, personality, attitudes, social role and self-image) as well as those that can be obtained at work or in the course of training and education (skills, knowledge and experience) [35].…”