Macau (MNA) – Findings from the Macau Entrepreneurship Index, a study conducted by Professor Matthew Liu of the University of Macau, reveals that most entrepreneurs in the city face challenges in finding access to private funding.
In the study, it was found that due to a lack of interest by international venture capital funds 51 per cent of entrepreneurs tended to fund their own businesses or tried to seek help from friends (20.8 per cent) followed by family members (15.4 per cent), and partners (13.4 per cent), according to a piece written by the professor in Macao Daily.
The average amount raised was MOP1.12 million (US$136,303).
In a previous edition of the study it was found that 4.2 per cent of local entrepreneurs took out a bank loan compared to 0.7 per cent for the latest research which covered an eight-year period.
Liu found that business owners in Macau tended to go for traditional businesses rather than high technology businesses that would make projects more attractive to international investors.
Less than half of new business owners think that start-ups have the access to venture capital (4.7 per cent) and 2.7 per cent believe their start-ups will be acquired by bigger players.
Nearly 69.8 per cent had not considered the possibility of pursuing venture capital, with only 20.8 per cent saying they believe that start-ups could have the possibility to access venture capital or be acquired.
The number of new business owners (28.2 per cent) who believe that venture capital might be introduced to Macau or that a local business could be acquired is 12.1 per cent lower than the previous period (40.3 per cent.)
Low growth was also a problem faced by many business owners, with 80 per cent falling into this category.
Medium-to-high growth is only expected by 13.4 per cent.
According to the professor, these findings show that Macau business owners are more concerned about short-term gains and survival of the business rather than thinking of innovating, which would attract more international investors.
