Around 63 per cent of the 364 senior managers questioned said inadequate English-language skills was the biggest obstacle facing Hong Kong companies.
Competition from China as it enters the World Trade Organisation was cited as the second biggest problem, with 61 per cent saying they expected it to become the major issue facing Hong Kong firms over the next five years.
The survey, commissioned by international accountancy association CPA Australia, also found that 61 per cent believed high property prices to be an obstacle, while 60 per cent expressed concern over high labour costs.
However, despite the problems, 45 per cent believed Hong Kong businesses had excellent prospects over the next five years, with 62 per cent saying China's entry to the WTO would create new opportunities.
President of CPA Australia in Hong Kong Vivian Sun said the survey showed Hong Kong companies had a role to play in ensuring that English proficiency improved.
They also needed to reposition themselves to cope with the opportunities and threats presented by China's WTO entry, she said.
(la/dpa)