It’s official: Australia is the second easiest place in the world to start a business, according to the World Bank.
Aside from the ease of starting and the healthy numbers of people who run businesses in Australia, there are several impressive Government run programs aimed at helping start-ups, ranging from the likes of Innovation Australia to schemes such as G’Day USA.
However, it’s clear that much more could be done to help budding Australian entrepreneurs. This week’s unveiling of the Obama administration’s huge Startup America program prompted us to ask – what are the best Government start-up schemes around the world that we’d like to see in Australia? Here’s the top 10.
As the Council of Small Business Organisations of Australia ruefully admits, we are lagging behind when it comes to entrepreneurship education. The idea of teaching enterprise in schools was embraced by the US in the 1990s and there are now a wide range of programs of students to tap into.
The Startup America initiative will scale up the Network for Teaching Entrepreneurship scheme to give young people the option of going it alone. Sir Richard Branson has established the Branson Centre of Entrepreneurship in South Africa and even the cash-strapped UK government recently pledged the equivalent of $60 million to enterprise education. Below university level, very little exists in Australia of a similar quality.
The reticence of banks to dole out cash to budding entrepreneurs isn’t new, but the situation has undoubtedly become tougher since the global financial downturn.
Although almost all Australian banks have small business specialists, there is no dedicated institution that lends to start-ups, unlike elsewhere. A publicly-owned small business bank already exists in Canada and a group of London-based investors have revealed that they will follow suit to create a UK version.
However, don’t hold your breath that a similar bank will be launched in Australia. The Federal Government told StartupSmart last year that the idea was a no-goer.
The US Federal Government runs the Minority Business Development Agency, which helps those from minority backgrounds start and run a business through mentoring and access to finance and contracts.
The agency’s work appears to be having some impact – between 2002 and 2007, the number of minority firms grew by 46%, compared to 18% for all US firms.
The US Government also runs more than 100 education centres dedicated to female entrepreneurs across the country. The level of start-up support offered by the Australian Government to women and minorities pales in comparison.
Australia may be fortunate that unemployment hasn’t blighted its workforce compared with other developed countries in recent years, but this has led to others forging ahead when it comes to helping the jobless into entrepreneurship.
True, the Australian Federal Government has the New Enterprise Incentive Scheme which helps unemployed people start their own business.
However, the amount of conditions placed on this support compare unfavourably to other schemes, such as a new UK Government initiative to offer anyone who has been on unemployment benefits for more than six months a weekly income and mentorship to help start a business.
Germany has got in on the act too, offering ‘Einstiegsgeld’, a generous package of help for unemployed people who want to start-up.
Hands-on help for tech start-ups is patchy in Australia, partially due to the country’s unforgiving geography. NICTA acts as a decent centre of ICT excellence, but there are precious few other tech hubs across the nation.
Of course, Silicon Valley outshines Australia in this area, but other nations are also starting to invest. The UK Government recently announced a $600 million plan to establish tech centres in east London and the 2012 Olympic Park to boost start-ups.
A centrepiece of Obama’s Startup America program is its ambitious mentorship element. The Government will work with seed fund Techstars and 15 independent regional centres to nurture start-ups.
Over the next three years, more than 5,000 experienced mentors will coach and develop 6,000 young entrepreneurs. Separate partnerships will drive entrepreneurship rates among women and older people. If only a similar effort existed here.
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