It is well known that innovation drives economic growth and improves the well being of a nation
‘The startup economy’ (commissioned by Google Australia by PWC in 2012 ) uncovered that the tech startup industry could deliver an additional $109 billion to the economy by 2033.
Definition of A tech startup – innovative, disruptive , potential to scale rapidly
75% of startups are targeting the Information Media and Telecommunications sector and may be missing the bigger picture opportunity for growth. Projections indicate that the Finance and Insurance, Manufacturing and Health Care and Social Assistance industries in particular hold either current or future value in contribution to total industry GDP. With Health Care and Social Assistance flagged as being the highest industry contributor to GDP by 2050.
6 key actions needed
Call to Action
Enhance culture and community engagement – Research suggests that we have a considerably high ‘fear of failure’ rate, which is potentially constraining the growth of our startup ecosystem. Crucial to overcoming this is creating a culture that encourages participation, as well as provides support through mentorship and financial backing via angel funding.
Attract more entrepreneurs with the right skills – The report outlines that this needs to be driven through both education, as well as engaging the existing workforce to be more entrepreneurial. The latter is something that has been done incredibly well by the likes of Google, where employees are actively encouraged to take time out to develop innovations and think entrepreneurially. If this approach is driven through more enterprise organisations it could not only facilitate the growth of the tech startup ecosystem, but benefit organisations on many different fronts.
Open up markets to Australian tech startups – In 2012 procurement contracts from all levels of Australian government totaled $41 billion. The opportunity is there, however the challenge for startups is in accessing this important market. Simplifying procurement processes and open-innovation could have mutually beneficial outcomes. Transport for NSW is one Australian government department engaging in open innovation and connecting with the startup community to satisfy customer needs.
Encourage more early stage funding– Funding for the Australian tech startup sector exists, but is in short supply. Australia invests approximately US$7.50 per capita in venture capital per annum, compared to the US ($75) and Israel ($150).
Improve the regulatory environment – Australia is highlighted as having one of the best regulatory environments for entrepreneurship and the report indicates that there is potential for government to further support innovation and entrepreneurship.
enterprise organisations should support from not only a funding perspective, but in the ability to embrace entrepreneurship within the operation of a business.
For full report download your copy of ‘The Startup Economy: How to support tech startups and accelerate Australian innovation’.