World recession bites. Unemployment continued to grow as companies shed staff to cut costs. Hong Kong, like its industrialized brethren countries in the West, has been weighing its options of big stimulus packages to get the economy moving forward and keep people in jobs.
On February 25, Financial Secretary John Tsang Chun-wah announced the government’s plan to spend HK$1.6 billion over the next three years to create a total of 62,000 new jobs [1]. Of which, over 20,000 will be permanent positions [2].
Job creation will be the centerpiece of Hong Kong’s overall economic strategy. A healthy workforce has positive economic ripple effects — it helps, among other things, keep criminal activities under control during the financial crisis, and lessen the impact on decreased consumption and tax revenues generated from wage-related activities.
As banks tighten credits, and other investors lick their wounds from the stock and real estate markets, seasoned angels often play their part in tackling the economic downturn — they act the opposite and go on a buying sphere in stalled economies, funding high potential startups in return for a larger share of equity. Their investments provide funds for companies to hire help, which creates extra jobs for the economy. Investing in startups also fuels innovation, which stimulates economic recovery and enhances Hong Kong’s competitiveness in the global marketplace.
What’s your take on the 2009–2010 budget [3]? How does it affect angel investors? What other ways can angels help to ease the pressure of economic contraction?
Note:
1. Budget aims to create jobs, tackle crisis
* For series, references are published in the last installment of the series.
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