Why Australia needs to get behind entrepreneurs

by Karina Yu, Marketing Associate | |   Business IT
Why Australia needs to get behind entrepreneurs

Steve Jobs didn't build a successful Apple overnight, it took decades of hard work and defeat. The fact is, the majority of startups fail but according to The Financial Review, Australian startups are experiencing a failure rate of 75% - 90%. The question needs to be asked, are Australian startups getting the support and funding that they require?

We need to ensure the sustainability and growth of successful startups as they play a crucial role in driving a nation's economic growth - helping to adapt to new challenges and keeping pace with the ever-changing digital landscape.

The vital role of startups in economic prosperity

  1. Disruption and technological growth

    Startup ambition is imperative to meet existing gaps in industry.

    The latest industry to be infiltrated by entrepreneurs is the education sector in Singapore - a lucrative market as Singaporean society places academia as top priority[1]. Disrupted by automated homework assistance tools and trainer search platforms, education technology (EdTech) is optimising traditional paradigms of learning.

    A quick, low-cost channel that connects learners and trainers across a wide range of subjects instantaneously, Tueetor is Singapore's lastest Edtech startup to see immense success[1]. Without the need to go through tuition centres, the app is hosting over 2000 trainers and covering almost 500 subjects, since its launch in September last year[2]. The credibility of trainers listed on the app are dependent on ratings and reviews; a similar structure to Uber and Airbnb.

    Founder Tan Han Sing told Channel NewsAsia that his goal was to make the search for a trainer ‘as easy as booking a hotel on TripAdvisor’[1].

    The Singapore government's strong force behind startups has allowed talents like Han Sing to become recognised. Not only does the 2017 budget place immense emphasis on providing more aid for small and medium-sized enterprises (SMEs) in going digital, more funding and cultivating networks to international markets and innovation hubs, Singapore's geographical location positions the small country as a convenient access point for striving technological markets in the area[3].

    Singapore's young emerging talents are establishing themselves as capable startups at the forefront of revolutionary technology, taking the number 12 spot in Startup Genome's Global Startup Ecosystem Report for 2017[4]. Silicon Valley unquestionably came in as the number 1 rank overall, but Singapore had surpassed the leader in the Talent factor[12].

  2. Globalisation

    Grab, with its headquarters in Singapore, is Uber's largest competitor and has had over 3 million downloads since its launch in 2012[5]. Google has also announced plans to build an engineering team based in Singapore that will focus on developing products for Southeast Asia[6]. These results validate the country's strategies to become globally significant.

    The Singapore government has made arrangements for approximately S$20 million to be set aside for the STARTUP SG initiative to support first-time entrepreneurs[7].

    As young, fresh talent receive more and more funding from the government each year, Singapore is looking increasingly attractive as startup location for foreign talent.

    Australia is not too far behind in the ranks in Startup Genome's report, with Sydney coming in at number 17 (home to 1300 - 2100 start ups). Dominating the Australian startup scene at the moment is Canva. Over the last year, the online graphic design platform gained 6 million users, and doubled its valuation to reach $345 million in 2016[4]. Sydney was given a high rank in Global connectedness, which means they have the knowledge and ability to extend their global reach, but its low Market Reach index indicates their products aren’t appealing to foreign consumers[4].

    Melbourne has been named as the world’s most liveable city for 6 years now yet many of the local startups are finding it hard to sustain under its high standard of living - a reason that initiated the government to introduce a $1.1 billion innovation package that includes tax offsets for startup investors and capital gains tax exemptions[4]. With the intention to turn Melbourne into a 'startup powerhouse', the government is changing its policies to 'be as agile as the startup businesses it seeks to inspire'[8].

    Kogan and Envato are currently enjoying great success in the digital space. Those who share an entrepreneurial mind have opportunities to interact and connect at regular events like FinTech Melbourne and Melbourne Silicon Beach[4]. These activities demonstrate the strength of local connectedness, and concurrently, a steady climb towards global connectedness. Melbourne isn’t quite in the top 20 ranks yet. However, the report showed strong Early-Stage Funding, Global Connectedness scores, and high quality engineering - which indicates that Melbourne could possibly hold a spot in the top 20 next year[4].

    Contemporary startups are grateful for tech tools - the 'springboards' that have helped them overcome many of the most complex challenges with global expansion - from managing offshore teams to accepting international payments[9]. One example is Startup Stack - facilitating and accelerating the global reach of Australian startups by automating the essential business basics.

    However, it isn't merely about turning local to global but also remaining open to up-and-coming global talent. StartupAUS's report showed that 61% of Australia’s most successful startups were founded by immigrants or children of immigrants[10]. Foreign entrepreneurs bring a novel kind of dynamism to local startup scenes; integrating cross-culture perceptions and different skill sets.

  3. More jobs

    Many countries are racing ahead of Australia in the tech industry, thus we need to import these talents and experiences in order to grasp new ideas and knowledge. Moreover, foreign startups create more jobs.

    The Australian economy saw 1.6 million new jobs between 2003 and 2014 thanks to startup talent[9].

    Paul Bassat, Board member of Innovation & Science Australia and non-executive director of Wesfarmers asserts that ‘globally, innovative startups are creating the sort of jobs that Australia needs in order to prosper; they are highly productive, high paying and offer rewarding careers.'[10]

    As mechanical jobs gradually disappear, there is a greater need to create more high value jobs. The value that startups bring to employment and Australia's progress in the tech space, creates more opportunities for future generations.


StartupAUS CEO, Alex McCauley, got it right when he said that 'the government has done a lot to build expectations that it is committed to making Australia once of the best countries in the work for innovators... it still has a lot to do to deliver on that commitment'. [11]

While the recent Australian budget welcomes some excellent initiatives for FinTech (such as removing the double taxation of digital currency, extending crowdsourced equity funding and open data in banking), Australia still needs to provide greater support to startups in order to secure economic growth and compete with advanced nations like Singapore and the US.

 



The CEO Institute, established over 25 years ago, helps business leaders like you connect with your peers to share skills, insight, and experience. The CEO Institute's leadership programs are available globally. To register your interest in any of our programs, click enquire.

 

[1]Retrieved from Tang, S. K. (2017). Tech Start-ups Cram Into Singapore’s Education Sector. www.channelnewsasia.com.
[2]Tueetor. tueetor.com/.
[3]Retrieved from Tegos, M. (2017). Singapore’s 2017 Budget Focuses on More Funding and International Expansion for Startups. www.techinasia.com.
[4]Startup Genome. (2017). Global Startup Ecosystem Report 2017.
[5]Retrieved from Novac, J. (2017). 4 Critical Lessons You Need To Learn From Grab’s Success. tribeinsider.com.
[6]Retrieved from Tham, I. (2016). Google on Hiring Drive to Set Up Singapore Hub. www.straitstimes.com.
[7]Retrieved from Wong, W. (2017). S$20m to be Set Aside for First-time Entrepreneurs. channelnewsasia.com.
[8]Retrieved from Martin, P. (2015). Free to Fail in Malcolm Turnbull's New $1.1 billion Innovation Plan. www.smh.com.au.
[9]Retrieved from Anthill Magazine. (2017). Aussie Startups More Quickly Becoming Global Scale-ups Thanks to This Startup Stack. anthillonline.com.
[10]StartupAUS. (2016). Crossroads Report.
[11]Retrieved from Simpson, C. (2017). From 2017, Bitcoin And Other Digital Currency Will No Longer Be Taxed Twice In Australia. www.gizmodo.com.au.
[12]Retrieved from Williams, A. (2017). Singapore No. 1 in World for start-up Talent: Report. www.straitstimes.com.

Other references

McDuling, J. (2017). Australia, We Need to Talk About Start-ups and Failure. www.afr.com.

 

 

Write new comment

1242412078120791208012165 12166 12083
preload 0preload 1preload 2preload 3preload 4preload 5preload 6preload 7preload 8preload 9preload 10preload 11preload 12preload 13preload 14preload 15preload 16preload 17preload 18preload 19preload image 1preload image 2preload image 3preload image 4preload image 5preload image 6preload image 7preload image 8preload image 9preload image 10preload image 11preload image 12preload image 13preload image 14preload image 15preload image 16preload image 17preload image 18preload image 19preload image 20preload image 21preload image 22preload image 23preload image 24preload image 25preload image 26preload image 27preload image 28preload image 29preload image 30preload image 31preload image 32preload image 33preload image 34preload image 35preload image 36preload image 37preload image 38preload image 39preload image 40preload image 41preload image 42preload image 43preload image 44preload image 45preload image 46preload image 47preload image 48preload image 49preload image 50preload image 51preload image 52preload image 53preload image 54preload image 55preload image 56preload image 57preload image 58preload image 59preload image 60preload image 61preload image 62preload Themeimage 0preload Themeimage 1preload Themeimage 2preload Themeimage 3preload Themeimage 4preload Themeimage 5preload Themeimage 6preload Themeimage 7preload Themeimage 8preload Themeimage 9preload Themeimage 10preload Themeimage 11preload Themeimage 12preload Themeimage 13preload Themeimage 14preload Themeimage 15preload Themeimage 16preload Themeimage 17preload Themeimage 18preload Themeimage 19preload Themeimage 20preload Themeimage 21preload Themeimage 22preload Themeimage 23preload Themeimage 24preload Themeimage 25preload Themeimage 26preload Themeimage 27preload Themeimage 28preload Themeimage 29preload Themeimage 30
Like
Love
Haha
Wow
Sad
Angry
Dislike
Not rated yet.
Please confirm
No
Yes
Information
Ok
Previous Next Hide preview images
Close webpage preview
Loading preview ...
Upload photo Upload pdf
Loading preview ...
Preview of your uploaded image Cancel image upload
*: required field
Preview Comment
Close comment preview
Cancel reply
Your comment will be a reply on the following comment:
Data protection and disclaimer
Data protection report - 18.7.2017, 00:00:45
Https is not enabled
Database is on the same server
Cookies can be refused or accepted AcceptRefuseCookies are accepted Cookies are not accepted
Search engines are allowed to index comments
Data protection is low (25%)
1
Software declaration
This software has no known backdoors or vulnerabilities that allows third parties access to your data. More about data protection with this commenting- and rating-system: www.toctoc.ch

No comments

Close

Let us know your enquiry