Support for Australian entrepreneurs pivotal to job creation and innovation
Monday, 7 November 2011— Australia is among the easiest start-up settings for entrepreneurs in G20 countries, but more could be done to improve access to funding and provide coordinated support according to a new report from Ernst & Young.
The report, Entrepreneurs speak out: a call for action to G20 governments has been released by Ernst & Young to coincide the G20 Young Entrepreneurs Summit in France, and examines how the world’s leading nations can encourage entrepreneurs, create jobs and strengthen their economies.
Key findings include:
- 44% of Australian entrepreneurs surveyed think Australia is the most favourable G20 environment for business
- 64% of Australian entrepreneurs think the Government should help facilitate access to funding
- 70% of Australian entrepreneurs say there aren’t enough tax incentives for starting a new business
- 70% are not impressed by the current level of coordination between the various support providers, government associations and educational institutions
Ernst & Young Australia Strategic Growth Markets Leader, Peter McIver says that while Australia is an entrepreneurial country with strong banking and mature capital markets, there is more that can be done to create a society that encourages and supports new entrepreneurs.
“Entrepreneurs play a pivotal role in boosting local and global economies by creating jobs, promoting innovation and supporting communities,” says McIver.
“In the two-year period between 2008 and 2010, the businesses of nominees in the 2011 Australian Ernst & Young Entrepreneur Of The Year® program experienced double-digit employment growth of 25%. This was during a time when overall Australian employment only rose by around 3% (from 10,759,400 total employed Australians in January 2008 to 11,079,500 in January 2010 according to ABS data).
“High-growth entrepreneurs find opportunity in adversity and have a vital role to play in helping us turn the corner and lead us out of this period of global economic uncertainty.
“Even during the most challenging times, entrepreneurs are able to grow and the creation of new business will play a crucial role in the future prosperity of G20 countries, including Australia.
“80% of Australian entrepreneurs surveyed agree our culture encourages entrepreneurship, however the report found that there are still some areas creating roadblocks for entrepreneurs.
“Access to funding is one area which Australian entrepreneurs saw as having deteriorated over the last five years, which is perhaps reflective of the volatility of the global economy. This can make it difficult to get new businesses off the ground, particularly for young entrepreneurs.
“While entrepreneurs are increasingly looking to Private Equity, Venture Capital and angel investors, 64% still think the government could play a greater role in improving access to funding, such as exploring credit guarantees, banking sector support and helping business angels’ networks widen their scope.
“Notably, tax was another area that Australian entrepreneurs would like to see improved, with 70% of survey respondents saying that increasing tax incentives would have a high impact on long term business growth,”
Other areas identified in the report as needing improvement included business regulations and the organisation of support providers. 46% of Australian entrepreneurs surveyed said business regulations had become more difficult over the last five years, and 70% rated the current level of coordination between the various governments, associations and education systems as poor.
“Additional support and attention at both a fiscal and policy level would encourage an even stronger entrepreneurial culture and increase innovation in Australia,” says McIver.
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Notes to editors
The Ernst & Young report was created for the G20 Young Entrepreneurs Summit (YES), which will take place in Nice, France, from 31 October to 2 November 2011. The report was commissioned by the G20 Young Entrepreneurs Alliance, a worldwide movement whose aim is to highlight for young people the vital role played by entrepreneurs in the growth, innovation, job creation and competitiveness of nations.
The report uses a combination of quantitative and qualitative measures:
- Macroeconomic and business environment indicators of variables directly influencing entrepreneurship
- A phone perceptions survey of 1,001 entrepreneurs across the G20 countries
- Qualitative interviews of 27 emblematic entrepreneurs
- An analysis of G20 recent government leading practices
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