Australia is rapidly becoming one of the places to be if you want to launch a startup. Recently, Business Insider published a listing of the 11 most successful Australian startups. It included the usual app development and design companies, but it also included the eCommerce platform Bigcommerce, which became one of the biggest venture capital investments in the world.
Everything seems to be pointing towards Australia now. But why has this become the case? Why is Australia suddenly becoming such a desirable country to follow your business dreams?
Australia is Investing
The legal structure makes it relatively simple to purchase and rent property. The Australian government is providing grants and loans for more and more companies. Property numbers are increasing. All these factors point to the fact that Australia is investing in itself.
At a time where major cities in Europe are seeing huge declines in the amount of government investment and support, Australia is bucking the trend. Businesses can rely on the support of the government. That alone makes it a highly desirable place for a startup.
Incredible Growth Rates
The average person is prone to following the crowd. This doesn't change for businesses. Pockets of entrepreneurs tend to pop up because small businesses like to use each other for support. Australia has seen huge growth rates in recent years.
As it stands, New South Wales is the startup capital of Australia, with 48% of all new businesses establishing themselves here. Sydney is the primary hub for startups, with 12% of new businesses founding themselves here. And this growth has been continuing for years.
Entrepreneurs see this and they believe this is a good place to get started.
Leading on from the previous point, growth tends to lead to more growth. Nowhere is this more apparent than in the startup industry. Entrepreneurs gravitate to each other because so many of them are starting businesses for the first time without any support.
They can find that support when they are surrounded by like-minded people. It's also led to the rise of coworking in Australia. More and more businesses are taking out coworking spaces where they can interact with other people in their positions.
And networking increases the chances of success, especially when you are trying to run a business with only a one-man team.
Has the Motivation Changed?
The International Labour Organization conducted research into the motivation behind the boom in startups in Australia. They discovered that 86% of entrepreneurs in Sydney are less likely to want to get rich. 37% of them said they only wanted to create a great product.
It emphasizes a shift in the next generation of businesses. They want to change the world as much as they want to achieve personal success. The same trends have been spotted with customers.Again, such a drastic shift demonstrates that
Again, such a drastic shift demonstrates that like-minded people come together. And that is a primary reason why the Australian startup industry has exploded.
The Australian Lifestyle
Entrepreneurs are coming from all over the country and all over the world. A big part about running a business is the entire lifestyle associated with it. People have long criticized the costs of starting a business in Australia. Living costs are much higher and you have to pay your employees far more.
But prices are much higher and you can sell your products according to the standards of an Australian. Melbourne, for example, is one of the most livable cities in the world, and it appears on such lists year after year.
The weather is pleasant all year. The population is healthy. There's plenty of natural beauty and the vast majority of cities are extremely modern. Everything is in place to live a good life, and this is motivational for both employers and employees.
Will it Continue?
Small businesses often never think long-term. Most of them are out of business within the first five years. But smart business owners know that they have to establish themselves in a market that will still be there a few years from now.
There are no signs that the entrepreneur boom in Australia will ease up anytime soon. Part of the reason is global events. Europe continues to struggle economically and there's a huge amount of political and economic uncertainty in the US.
Compared to these regions, Australia provides a stable base for notoriously unstable business types to begin growing.
What are your opinions of the small business landscape in Australia and would you want to start a business here?