Hong Kong's startup ecosystem remains vibrant despite the ongoing economic challenges of the global pandemic, with the overall number of startups in the city reaching a record high of 3,755, up 12% over 2020.

Invest Hong Kong's latest survey revealed that the increase had a positive bearing on the job market, with the number of staff hired by startups surging 29% from that of last year.

It noted that 66% of the startup founders were Hong Kong locals and 7% were Hong Kong returnees. The rest were from the Mainland, the US, the UK, France and India.

InvestHK said accessibility to international or regional markets, the simple tax system and low tax rate, business opportunities in the Mainland, and access to funding were the key factors driving startups to set up in the city.

The survey showed about 13,800 staff were engaged in these startups which spanned different business sectors.

It also noted the pandemic accelerated the adoption of remote or e-learning, driving the number of edtech startups up 27% from 2020.
  
Head of StartmeupHK at InvestHK Jayne Chan said the number of startups in Hong Kong is expected to grow as the digitalization trend continues to accelerate and broaden due to the pandemic.