{"id":47322,"date":"2023-10-20T15:53:16","date_gmt":"2023-10-20T15:53:16","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/red-tape-and-a-lack-of-transparency-holding-nsw-startup-grants-back-report-startupsmart\/"},"modified":"2023-10-20T15:53:16","modified_gmt":"2023-10-20T15:53:16","slug":"red-tape-and-a-lack-of-transparency-holding-nsw-startup-grants-back-report-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/red-tape-and-a-lack-of-transparency-holding-nsw-startup-grants-back-report-startupsmart\/","title":{"rendered":"Red tape and a lack of transparency holding NSW startup grants back: report – StartupSmart"},"content":{"rendered":"
Startups aren\u2019t applying for government grants and taking advantage of the funding on offer because of arduous red tape and a lack of transparency in the process, a new report has found.<\/p>\n
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The Committee for Sydney published the report, which examines the most effective ways for governments to \u201clead from behind\u201d and help foster a startup ecosystem.<\/p>\n
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\u2018Building the startup ecosystem in NSW: from grants to collaboration<\/em> centres on the barriers to startups receiving grants and business incentives from the state government, and ways to improve this process.<\/p>\n <\/p>\n With help from KPMG, over 75 startups were surveyed for the report.<\/p>\n <\/p>\n It found that although the awareness of government grants among startups is high, the participation rate is much lower, with only 39% of those that are aware of grants, actually applying for one.<\/p>\n <\/p>\n The survey found that a major reason for this is the time-consuming red tape and paperwork involved with applying for these incentives.<\/p>\n <\/p>\n \u201cA lack of resources means startups must make a choice between spending time on product development, customer engagement, grant applications and seeking other forms of funding,\u201d the report says.<\/p>\n <\/p>\n This \u201clong, arduous process\u201d means many startups are forgoing seeking government assistance entirely.<\/p>\n <\/p>\n \u201cThe paperwork and process is so bureaucratic that most startups find it easier to go to crowdfunding and other options,\u201d one of the surveyed startups says.<\/p>\n <\/p>\n \u201cThe language of public servants can be hard to decipher,\u201d another adds.<\/p>\n <\/p>\n The report finds that the R&D tax incentive has the highest rate of uptake among the NSW startup community, while also providing the highest return on investment.<\/p>\n <\/p>\n A lack of transparency in the grants process has also been flagged as a major barrier, especially in terms of the criteria not being clearly displayed.<\/p>\n <\/p>\n \u201cOften hours can be spent looking at grants and incentives you think are applicable only to find something excluding you hidden in a later document or page,\u201d the report says.<\/p>\n <\/p>\n The report has four key recommendations to improve these government business incentives.<\/p>\n <\/p>\n It says there needs to be improved education and awareness of what\u2019s on offer, a more efficient and effective application process, greater transparency throughout, and more strategic use of the grants and incentives.<\/p>\n <\/p>\n