{"id":34754,"date":"2023-10-20T14:34:53","date_gmt":"2023-10-20T14:34:53","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/tech-start-ups-could-contribute-109-billion-to-local-economy-by-2033-startupsmart\/"},"modified":"2023-10-20T14:34:53","modified_gmt":"2023-10-20T14:34:53","slug":"tech-start-ups-could-contribute-109-billion-to-local-economy-by-2033-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/tech-start-ups-could-contribute-109-billion-to-local-economy-by-2033-startupsmart\/","title":{"rendered":"Tech start-ups could contribute $109 billion to local economy by 2033 – StartupSmart"},"content":{"rendered":"
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Tech 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.<\/p>\n

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The report, titled The Startup Economy: How to support tech startups and accelerate Australian innovation<\/i>, was commissioned by Google and prepared by PricewaterhouseCoopers.<\/p>\n

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Preliminary findings of the report, which provides a snapshot of Australia\u2019s 1500 tech start-ups, were released in March<\/a>.<\/p>\n

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Google commissioned the report after helping form #startupAUS<\/a>, a new industry group that is working on a national campaign to promote the Australian tech start-up sector.<\/p>\n

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The group is led by Google Australia engineering director Alan Noble, Freelancer.com founder Matt Barrie, Shoes of Prey co-founder Michael Fox, Fishburners\u2019 Peter Bradd, Southern Cross Ventures\u2019 Bill Bartee and Startmate founder Niki Scevak.<\/p>\n

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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 \u2013 and 540,000 jobs \u2013 to the Australian economy by 2033.<\/p>\n

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According to PwC partner and economist Jeremy Thorpe, the findings will prove useful as the start-up sector continues to grow.<\/p>\n

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\u201cThere is no comprehensive catalogue of start-ups in Australia [but] we believe there\u2019s 1500 start-ups in Australia\u2026 The majority are in Sydney,\u201d Thorpe says.<\/p>\n

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\u201cThe vast majority of start-ups do not succeed \u2013 they actually fail\u2026 [Only] 40% of entrepreneurs in the start-up space, when they fail, will start again.\u201d<\/p>\n

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The report highlights four key ways to unlock the potential of the Australian start-up sector:<\/p>\n

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Attract more entrepreneurs with the right skills<\/h3>\n

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In the short term, Australia needs 2000 more tech entrepreneurs each year drawn from the existing workforce.<\/p>\n

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In the long term, Australia\u2019s education sector must produce more skilled tech entrepreneurs.<\/p>\n

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Encourage more early stage funding<\/h3>\n

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Funding for the Australian tech start-up sector will need to increase.<\/p>\n

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Australia invests approximately $US7.50 per capita in venture capital per annum, compared to the United States ($75) and Israel ($150).<\/p>\n

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Open up local markets to tech start-ups<\/h3>\n

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Governments are major consumers, with spending totalling $41 billion in 2012. They can become more start-up-friendly with procurement reform.<\/p>\n

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\u201cCompanies can [also] think more innovatively about how they use start-ups,\u201d Thorpe says.<\/p>\n

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Foster a stronger and open culture of entrepreneurship<\/h3>\n

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Australia has a considerably higher \u201cfear of failure\u201d rate than nations like the US and Canada, constraining the sector.<\/p>\n

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The tech community is key to changing this by celebrating its own success and becoming more inclusive.<\/p>\n

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According to Noble, this last point is a key takeaway.<\/p>\n

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\u201cThis is a good thing \u2013 that the community realises the fate of the sector is actually in its own hands,\u201d Noble says.<\/p>\n

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\u201c#startupAUS is a start-up itself. We\u2019re still actually figuring out what the organisation\u2019s structure will look like. It will be some form of not-for-profit.<\/p>\n

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\u201cWe want to make sure it\u2019s very much driven by the community itself. It won\u2019t be like your traditional government body \u2013 it will be a much more community-led organisation.<\/p>\n

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\u201cA big part of its success will be ensuring we do provide ways for the community to collaborate\u2026 and, with any new venture, no one has a monopoly on ideas.<\/p>\n

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\u201cHopefully the research released today will go some way to helping to inform the debate and get to where we need to go by 2033.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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