As the Hong Kong government announces support for small businesses, the question is where to invest time and resources
Last week, the Hong Kong government announced plans to roll out relief measures worth HK$19.1 billion (US$2.4 billion) to shore up an economy under pressure from, among other things, a worsening global economic outlook and the escalation of US-China trade tensions.
According to the Financial Secretary, Paul Chan, the initiative will cover things like student subsidies and fee waivers for low-income households. It will also offer help for small businesses.
That last point raises an interesting question. What kind of help would do the most good for SMEs. Or, to put it another way: if the government were to hand out money – whether that’s in the form of tax breaks or rebates – where is the best place for SMEs invest that support!
Take the Train
The first thing I’d say is that, if you are a billionaire, then by all means buy a Rolls Royce. But, if money is tight, you need to make the most of it by taking the MTR.
The same thing applies to small businesses, where resources are always tight. Cloud solutions are OpEx, Not CapEx. So, putting any government bounty into cloud-related solutions is a good way to stretch it as far as possible.
The cloud model of data-center-driven, service-centric provisioning offers customers the chance to purchase only the computing power they need. That improves the bottom line immediately and significantly, shifting IT costs from an expensive upfront capital investment, to a controlled operational expense.
Big businesses have been doing this kind of thing it for years, but it’s also an ideal scenario for the smaller business, too. In fact, you could argue that the extra money it makes available for reinvestment can have a far more profound effect on the success of a small business in growth mode than a large one.
Rent the Best
Cloud providers often aggregate massive quantities of data, and then apply rules, algorithms, and other technologies. This enables them to create economies of skill and scale that resource-constrained SMEs can harness to meet new market demands, improve business results and reshape their businesses to keep pace with a changing competitive landscape.
Smaller businesses rarely have the budgets to hire business analysts, data scientists, and engineers capable of creating machine learning algorithms. However, with a little extra government money, they could can hop on the coattails of those types of services offered by their cloud technology providers.
Do what you do best – Business!
As the financial secretary said, “based on the latest developments … the Hong Kong economy will continue to face an austere environment in the rest of the year.” And anything that can help our SME community will undoubtedly be welcome.
In the meantime, companies interested in doing more of what they do best – business – can find the right SAP solution for them online by clicking here and answering a few questions.