SMEs are the driving force of economic growth. There are about 300 000 SMEs in Hong Kong, representing about 98.41 per cent of all local enterprises. They employ more than 1.36 million people. The Government is committed to helping SMEs grow and develop.

    Four SME funding schemes were established in December 2001/January 2002 to help SMEs secure loans for the purchase of business installations and equipment, expand markets, provide training to employers and employees, and enhance overall competitiveness. They are, respectively, the SME Business Installations and Equipment Loan Guarantee Scheme, the SME Training Fund, the SME Export Marketing Fund, and the SME Development Fund. Over 10 000 SMEs have so far benefited from these schemes and the total government guarantee/grant involved is about $1.2 billion.

    The Small and Medium Enterprises Committee started a comprehensive review on the effectiveness of the four funding schemes in August 2002. A report setting out the committee's recommendations on means to further enhance the effectiveness of these schemes was submitted to the Chief Executive in December. The Chief Executive has accepted the committee's recommendations in full. The Administration aims to implement all the recommendations by end-March 2003.

    The Support and Consultation Centre for SMEs (SUCCESS) of the Trade and Industry Department provides SMEs with a comprehensive range of free information and advisory services under one roof. By collaborating with over 80 major trade and industry associations, support organisations, professional bodies, private firms and government departments, SUCCESS provides a business advisory service for SMEs on issues relating to starting, running and expanding businesses. Its facilities include a reference library, computer workstations, electronic databases, audio-visual references, and areas for hosting mini-seminars and workshops. SUCCESS also runs the Virtual SME Information Centre and the Business Licence Information Service on the Internet.

    Following the positive outcome of a review on a pilot mentorship programme for SMEs in 2001, the Trade and Industry Department, in collaboration with 25 trade and industry associations, launched a full mentorship programme for SMEs in May 2002. The programme provides an opportunity for SME operators to learn from, and be guided by, accomplished entrepreneurs, senior executives and professionals through one-on-one free counselling. Over 200 SME entrepreneurs participated in the 2002–03 programme.