Hong Kong's Entrepreneurial Landscape: Insights from a Belgian Expat's Journey

Hong Kong S.A.R., 23rd Sep 2024, -

 

 

In the bustling metropolis of Hong Kong, where East meets West and opportunity seems to lurk around every corner, countless entrepreneurs have found their calling. Among them is Dr. Laurent Timmermans, a Belgian-born expat who has called this vibrant city home for over 16 years. As the founder of ATHENASIA Consulting, a firm specializing in company incorporation, accounting, and corporate services, Laurent has not only built a successful business but has also become an integral part of Hong Kong's entrepreneurial ecosystem.

We recently had the pleasure of sitting down with Laurent to discuss his journey from intern to business owner and university lecturer, to gain insights into the unique challenges and opportunities that Hong Kong presents for aspiring entrepreneurs. 

His story is one of perseverance, adaptability, and the relentless pursuit of a dream.

The Allure of Hong Kong for Entrepreneurs

Hong Kong's appeal as a business hub is multifaceted. Its strategic location at the doorstep of Mainland China and other Asian markets provides unparalleled access to a vast customer base and intricate supply chain networks. The city's low and simple tax system is a major draw for businesses looking to maximize profits, while its British-inherited rule of law ensures a stable and predictable business environment.

Dr. Timmermans emphasizes the city's international appeal: "Hong Kong's multicultural society and global connections make it an ideal hub for international business. The blend of Eastern and Western cultures helps foreign businesses understand and penetrate Chinese and Asian markets effectively."

Moreover, Hong Kong offers robust support for startups, including co-working spaces, mentorship programs, and various funding opportunities. While it may not be the "Asian Silicon Valley," institutions like Cyberport and the Science Park are actively working to bolster the startup ecosystem.

A Journey from Intern to Entrepreneur

Dr. Timmermans' own story is a testament to Hong Kong's entrepreneurial spirit. He arrived in 2008 as a 23-year-old intern for AIESEC, a non-profit organization. "I was living in a cramped dorm, earning barely enough to scrape by," he recalls. "But even then, I could feel the energy of the city. It was intoxicating."

After a brief return to Belgium, where he started a corporate training business while teaching high school, Dr. Timmermans found himself drawn back to Hong Kong. He secured a position with Dale Carnegie Hong Kong but soon realized that the corporate world left him unfulfilled.

In 2012, at the age of 27, he made two life-changing decisions: proposing to his girlfriend and starting his own company, ATHENASIA Consulting. Named after the Greek goddess of wisdom and strategic warfare, ATHENASIA initially focused on helping entrepreneurs create business plans and improve performance management.

Adapting to Market Demands

Dr. Timmermans quickly learned that success in Hong Kong requires adaptability. "We shifted our focus to company incorporation, accounting, and corporate services because that's where we saw the most need," he explains. "Hong Kong's strategic location, low tax rates, and robust legal system make it an attractive destination for businesses looking to expand into Asia. We positioned ourselves as the experts who could guide them through the process."

This pivot proved successful. By 2015, ATHENASIA had grown tenfold, reaching its first million HKD in turnover and becoming a XERO Gold Partner shortly after. However, the journey wasn't without its challenges.

Navigating Hong Kong's Business Landscape

One of the biggest hurdles Dr. Timmermans and his team faced was the changing banking landscape. "Opening a business bank account in Hong Kong used to be relatively straightforward," he notes. "But with the introduction of stricter compliance regulations like FATCA, CRS, AEOI, and FATF, many of our clients found themselves struggling to navigate the system."

In response, ATHENASIA had to become experts in banking regulations almost overnight. They also began exploring FinTech solutions like Currenxie and Airwallex to provide alternatives for clients who struggled with traditional banking options.

The rise of e-commerce has been another game-changer for businesses in Hong Kong. Dr. Timmermans explains, "Hong Kong's proximity to China makes it an ideal base for sourcing products and managing quality control. We've seen a surge in entrepreneurs looking to set up e-commerce businesses here, leveraging Hong Kong's efficient logistics and strategic location to sell products globally through platforms like Amazon and Shopify."

Types of Businesses Thriving in Hong Kong

Dr. Timmermans identifies several business models that are particularly well-suited to Hong Kong's ecosystem:

Service-based businesses: These span a wide range of industries, from IT and consulting to hospitality and healthcare. Examples include management consultants, recruiters, digital marketing agencies, and legal firms.

E-commerce: Businesses that source products from China and sell to markets in the US and EU are particularly prevalent.

Trading and sourcing: Hong Kong's strategic location makes it ideal for businesses that act as middlemen between manufacturers (often in China) and global markets.

Financial services: Hong Kong consistently ranks among the top global financial centers, offering innovative, world-class financial products and services.

Technology startups: While not yet at the level of Silicon Valley, Hong Kong's tech startup scene is growing, supported by institutions like Cyberport and the Science Park.

Overcoming Challenges and Growing a Business

Dr. Timmermans' journey with ATHENASIA illustrates the challenges of scaling a business in Hong Kong. 

In 2016, as the company grew, he hired his first employees and rented an office in Tsim Sha Tsui. However, the changing banking regulations slowed down client incorporations and complicated operations.

"We had to adapt quickly," Dr. Timmermans recalls. "We found banking alternatives and adjusted our services to meet the new regulatory requirements. It was a steep learning curve, but it ultimately made us more resilient and versatile."

Another unexpected challenge came in the form of what Dr. Timmermans calls the "green box invasion." In Hong Kong, when a limited liability company is registered, the company secretary provides a green document box (Company Kit Set) to store physical documents related to company registration. As ATHENASIA's client base grew, these boxes began to overwhelm their small office.

"We had to move to a larger office in Wan Chai," Dr. Timmermans explains. "It was a significant investment at a time when cash was tight. We even ended up building our own office furniture to save money. It was a reminder that growth often comes with unexpected challenges."

Despite these hurdles, ATHENASIA continued to grow. They expanded their team, hiring not just in Hong Kong but also in the Philippines, where they developed a team of bookkeepers and accountants to provide cost-effective services to their clients. Today, ATHENASIA operates in Hong Kong, The Philippines, Mauritius and UK.

Weathering Global Storms

The resilience of Hong Kong's business ecosystem was put to the test in recent years. The 2019 protests created uncertainty that scared some investors, and the subsequent COVID-19 pandemic forced Hong Kong to close its borders, disrupting many businesses.

Dr. Timmermans' experience during this time offers valuable lessons in adaptability. "When the protests hit, many businesses were hesitant to invest in Hong Kong," he recalls. "But we saw it as an opportunity to double down on our commitment to our clients. We positioned ourselves as a stable partner that could help businesses navigate the uncertainty."

ATHENASIA lost about 30% of its clients as businesses closed or scaled back operations. 

However, Dr. Timmermans made a bold decision: instead of cutting costs, he invested in the company's future.

"We hired a marketing director, increased our marketing budget, and focused on developing our sales team," he explains. "It was a risk, but it's paying off. We're projecting our best year ever in 2024, and we're on track to grow by 25% this year."

This approach highlights a key lesson Dr. Timmermans has learned over his years in Hong Kong: the importance of building resilient business structures that can weather unexpected storms. "You have to create a culture of trust and empowerment within your organization," he advises. "As the owner, you set the conditions, but you need to trust your team to handle challenges as they arise."

Advice for Aspiring Entrepreneurs

For those considering taking the plunge into entrepreneurship in Hong Kong, Dr. Timmermans offers several pieces of advice:

Do your homework: Understand the legal and regulatory environment, especially when it comes to company incorporation and banking. Hong Kong is business-friendly, but it's not without its complexities.

Build a strong network: Hong Kong's business community is tight-knit, and personal relationships can open many doors. Attend industry events, join chambers of commerce, and don't be afraid to reach out to people.

Be prepared to adapt: What works today might not work tomorrow. Stay informed about market trends and be ready to pivot your business model if necessary.

Leverage Hong Kong's strengths: Take advantage of the city's strategic location, efficient logistics, and proximity to manufacturing hubs in China.

Understand the funding landscape: Familiarize yourself with the various funding options available, including government schemes like the SME Loan Guarantee Scheme and the Innovation and Technology Venture Fund.

The Future of Entrepreneurship in Hong Kong

Despite the challenges of recent years, Dr. Timmermans remains optimistic about Hong Kong's future as a global business hub. "Hong Kong's fundamental strengths remain intact," he asserts. "Its strategic location, low tax rates, and world-class infrastructure continue to make it an attractive destination for businesses looking to expand into Asia."

He sees particular potential in the technology and innovation sectors. "Hong Kong is investing heavily in becoming a smart city and fostering innovation," Dr. Timmermans notes. "There are exciting opportunities in areas like FinTech, AI, and IoT."

The Greater Bay Area initiative, which aims to link Hong Kong more closely with neighboring cities in Guangdong province, also presents new opportunities. "This initiative could open up a market of over 70 million people," Dr. Timmermans explains. "It's an exciting prospect for businesses based in Hong Kong."

The Road Forward

Dr. Laurent Timmermans' journey from intern to successful entrepreneur embodies the spirit of Hong Kong – a city where determination, adaptability, and innovation can lead to extraordinary success. His experiences offer valuable insights for anyone considering starting a business in this dynamic city.

Hong Kong's unique blend of Eastern and Western influences, its strategic location, and its business-friendly policies continue to make it an attractive destination for entrepreneurs from around the world. While challenges exist – from regulatory complexities to global economic uncertainties – the opportunities for growth and success are abundant for those willing to embrace the city's entrepreneurial spirit.

As Hong Kong continues to evolve and face new challenges, it's clear that entrepreneurs like Dr. Timmermans will play a crucial role in shaping its future. Their ability to navigate complexity, embrace change, and create value will ensure that Hong Kong remains a vibrant hub for business and innovation for years to come.

For those inspired by Dr. Timmermans' story and considering their own entrepreneurial journey in Hong Kong, his parting advice serves as both encouragement and a reality check: 

"Remember why you're doing this. Building a business is challenging, but it can also be incredibly rewarding. Don't lose sight of your passion and your goals. And always be ready to adapt – in Hong Kong, change is the only constant."

 

Media Contact

Organization: ATHENASIA Consulting

Contact Person: Dr. Laurent Timmermans

Website: https://www.athenasia.com/

Email: info@athenasia.com

Contact Number: 85237065996

City: Wanchai

State: Wanchai

Country:Hong Kong S.A.R.

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