Why Australia is becoming one of the great places for launching a startup with such haste?
People used to criticize the costs of starting a business in Australia but now entrepreneurs are coming from all over the world. Although living costs are much higher and you have to pay your employees far more, prices are much higher too 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.
Still primary reason why Australian startup industry has exploded is that the country is investing. Thanks to the legal structure it’s relatively simple to buy 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.
While 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.
The average person is set about 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.
Currently 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.
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.
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.
And finally, how long will the entrepreneur boom 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 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.
And last but not least – in Australia 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 - heaven, in other words.