Michael Fox
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Tech start-ups could contribute $109 billion to local economy by 2033
4:17PM | Monday, 22 AprilTech start-ups have the potential to contribute $109 billion to the Australian economy, or around 4% of GDP, by 2033, according to a new report, which identifies four key ways to unlock the potential of the sector. The report, titled The Startup Economy: How to support tech startups and accelerate Australian innovation, was commissioned by Google and prepared by PricewaterhouseCoopers. Preliminary findings of the report, which provides a snapshot of Australia’s 1500 tech start-ups, were released in March. Google commissioned the report after helping form #startupAUS, a new industry group that is working on a national campaign to promote the Australian tech start-up sector. The group is led by Google Australia engineering director Alan Noble, Freelancer.com founder Matt Barrie, Shoes of Prey co-founder Michael Fox, Fishburners’ Peter Bradd, Southern Cross Ventures’ Bill Bartee and Startmate founder Niki Scevak. Google and PricewaterhouseCoopers have now released the findings of their report, which shows start-ups have the potential to contribute $109 billion or 4% of gross domestic product – and 540,000 jobs – to the Australian economy by 2033. According to PwC partner and economist Jeremy Thorpe, the findings will prove useful as the start-up sector continues to grow. “There is no comprehensive catalogue of start-ups in Australia [but] we believe there’s 1500 start-ups in Australia… The majority are in Sydney,” Thorpe says. “The vast majority of start-ups do not succeed – they actually fail… [Only] 40% of entrepreneurs in the start-up space, when they fail, will start again.” The report highlights four key ways to unlock the potential of the Australian start-up sector: Attract more entrepreneurs with the right skills In the short term, Australia needs 2000 more tech entrepreneurs each year drawn from the existing workforce. In the long term, Australia’s education sector must produce more skilled tech entrepreneurs. Encourage more early stage funding Funding for the Australian tech start-up sector will need to increase. Australia invests approximately $US7.50 per capita in venture capital per annum, compared to the United States ($75) and Israel ($150). Open up local markets to tech start-ups Governments are major consumers, with spending totalling $41 billion in 2012. They can become more start-up-friendly with procurement reform. “Companies can [also] think more innovatively about how they use start-ups,” Thorpe says. Foster a stronger and open culture of entrepreneurship Australia has a considerably higher “fear of failure” rate than nations like the US and Canada, constraining the sector. The tech community is key to changing this by celebrating its own success and becoming more inclusive. According to Noble, this last point is a key takeaway. “This is a good thing – that the community realises the fate of the sector is actually in its own hands,” Noble says. “#startupAUS is a start-up itself. We’re still actually figuring out what the organisation’s structure will look like. It will be some form of not-for-profit. “We want to make sure it’s very much driven by the community itself. It won’t be like your traditional government body – it will be a much more community-led organisation. “A big part of its success will be ensuring we do provide ways for the community to collaborate… and, with any new venture, no one has a monopoly on ideas. “Hopefully the research released today will go some way to helping to inform the debate and get to where we need to go by 2033.”
Google to examine Australian start-up scene for StartupAUS project
3:48AM | Wednesday, 20 MarchGoogle has commissioned PricewaterhouseCoopers to gather data on Australian tech start-ups, and has already released preliminary findings, after partnering with five well-known Australian tech entrepreneurs including Matt Barrie.
I have a brilliant idea for an online business. How can I be sure it’s a goer?
3:23AM | Wednesday, 13 MarchThis week’s Secret Soloist is answered by Shoes of Prey co-founder Michael Fox. This is an exciting position to be in and, as you’ve identified, it’s critical to ensure you have your product and value proposition clearly defined to the point where people are willing to part with their money to buy your product.
Deloitte and Norton Rose to press government on employee share options
2:43PM | Monday, 4 FebruaryDeloitte has partnered with law firm Norton Rose to conduct a survey on employee share option plans in order to present the government with hard-and-fast data on the issues affecting start-ups.
Start-ups’ federal election wish list
3:30AM | Thursday, 14 MarchSome say it’s too late. Some, even those who have been continuously calling for the nation to go to the polls for the past three years, say it’s too early, given the budget announcement isn’t until May.
Eyewear start-up unfazed by sombre industry forecast
3:09AM | Friday, 15 MarchAustralia’s optometry and optical dispensing industry is expected to grow just 0.4% in 2012-13, according to an IBISWorld report, but online eyewear retailer Sneaking Duck says it isn’t worried.
Shoes of Prey founder flags share option woes for start-ups
3:12AM | Friday, 15 MarchSerial entrepreneur and StartupSmart mentor Michael Fox has outlined problems with employee share option plans (ESOPs) for start-ups, after being invited to meet with the federal government.
US VC funds raised $20.6 billion in 2012 – but what slice did Aussie start-ups take?
3:11AM | Monday, 11 MarchVenture capital firms in the United States raised $20.6 billion from 182 funds in 2012, new figures show, with Australian start-ups among those that benefited from the surge in investment cash.
How to safely scale your start-up in 2013
12:14AM | Monday, 17 DecemberMike, Jodie and I are often asked how we persuaded ourselves that it would be okay to quit our jobs to start Shoes of Prey and how we managed to self-fund the business without overstretching our resources.
Gillard urged to help create 'Silicon Beach' for Australian tech businesses
3:53AM | Tuesday, 12 MarchGovernment regulations need to change if Australia is to create a 'Silicon Beach' that will compete with the world's leading digital economies, a gathering of tech giants and start-ups has told Prime Minister Julia Gillard.
Confident exporters predict New Zealand market will keep growing
8:24PM | Thursday, 9 AugustNew Zealand has replaced the United Kingdom as the predicted third biggest export destination for Australian exporters in five years’ time, according to the 2012 DHL Export Barometer.
Getting trampled in the Silicon Valley gold rush
6:19AM | Monday, 25 JuneGoing by economic indicators such as unemployment, inflation and interest rates, Australians should feel pretty good about how we stack up with the US.
Google launches Trusted Stores program in US
6:59AM | Friday, 8 JuneGoogle has launched a new program to assure online consumers they’re buying from trustworthy websites, but it’s currently only available for purchases shipped within the United States.
StyleTread bucks Asian gold rush to expand to New Zealand
5:22AM | Wednesday, 16 MayAn online retail expert says New Zealand can be a lucrative market for start-ups as long as they localise their offering, after online shoe store StyleTread announced its New Zealand launch.
Google Sudo aiming to drive growth among Aussie start-ups
5:09PM | Wednesday, 9 MayGoogle is rolling out a new series of networking and tutorial events aimed at growing Australia’s start-up scene and fostering the “enormous talent” of local entrepreneurs.
SMEs warned over rush for customer data
5:25AM | Friday, 4 MayOnline retailers need to avoid overwhelming consumers with questions, experts say, after the privacy commissioner said local companies demand too much information from their customers.
Wednesday 11 April, 2012
4:13PM | Tuesday, 10 AprilToday on StartupSmart, Leon Gettler talks to three entrepreneurs about the lessons learnt at different stages of their business development.
eBay to boost usability of Australian site for sellers
3:29AM | Saturday, 17 MarcheBay will make improvements and upgrades to its Australian site, including changes to its pictures service and fewer insertion fee tiers, in a bid to boost the usability of the site for sellers.
Five top tips to improve your email marketing
5:07AM | Wednesday, 2 MayAs email has become a ubiquitous tool for the public, businesses have been able to take advantage of a low-cost, high-reach and easily measurable marketing medium.
Government looks to spark home-based business surge with National Telework Week
3:01AM | Monday, 11 MarchThe Federal Government will stage National Telework Week in November in a bid to highlight the benefits of working from home, on the back of the National Broadband Network rollout.
