BUD Enterprise Support Programme

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What are the main aims and objectives?

To provide funding support to individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the ASEAN market and Mainland China market, so as to enhance their competitiveness and facilitate their business development in the ASEAN and Mainland China market.

How does the program work?

The Dedicated Fund on Branding, Upgrading and Domestics Sales – Enterprise Support Programme (BUD) provides financial support to Hong Kong SMEs supporting them in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the Mainland market, increasing their competitiveness and facilitating their business in the Mainland market. 

The government will cover maximum of 50% of approved project cost, with a limit up to HKD 500,000 per enterprise. Each funded project should be completed within 24 months. 

Eligibility

All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance (Chapter 310) with substantive business operations in Hong Kong are eligible to apply, irrespective of whether they belong to the manufacturing or service sector or whether they already have any business operations in the ASEAN and the Mainland China.

Timeline

To help Hong Kong enterprises capture the opportunities arising from the National 12th Five-Year Plan, the Hong Kong Special Administrative Region Government set up the “Dedicated Fund on Branding, Upgrading and Domestics Sales” (the BUD Fund) of $1 billion in June 2012.

To help SMEs, including start-ups, grasp economic opportunities and boost their competitiveness, the 2018-19 Budget proposed to extend the geographical scope of the BUD Fund to include the Association of Southeast Asian Nations (ASEAN) markets by launching the “ASEAN Programme”, and to increase the cumulative funding ceiling per enterprise for projects involving the Mainland China Market (the “Mainland Programme”).  The Finance Committee of the Legislative Council approved the enhancement proposal and funding injection of $1.5 billion in June 2018. 

Notes + Additional Context

Hong Kong’s startup ecosystem is growing rapidly. According to the 2015 Global Startup Ecosystem Ranking, it is the 25th largest startup ecosystem in the world in terms of size and 5th fastest growing in terms of expansion. The financial technology (‘fintech’) and internet of things (‘IoT’) sectors, in particular, have boomed. Hong Kong is a major financial centre, which makes it an attractive place for fintech startups looking to collaborate or sell to banks or insurance companies. In addition, its proximity to the Chinese manufacturing hub of Shenzhen makes it an inviting location for IoT companies in need of rapid prototyping. New businesses in Hong Kong also benefit from low tax rates, modern infrastructure and ease of company formation.

Read the full Hong Kong case study in Nesta's ‘Idea Bank’ for Local Policymakers.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom