Potential risks

Young entrepreneurs should also try to make capital arrangements beforehand, and analyze potential risks and be aware of their own abilities, he said.

Tse stressed that the major challenge one faces in starting a company in Hong Kong is the high costs, including rental and labor costs. But he argued that people need to know that Hong Kong is still the place to do business and a place where Western and Eastern cultures meet.

Hong Kong people are exposed to diversified information and creative ideas from all over the world while also having a deep understanding of the mainland, said Tse.

"Young entrepreneurs in Hong Kong should seize the advantages of the city's unique economic and geographical position and closely monitor business opportunities on the mainland."

Contact the writer at sophiehe@chinadailyhk.com