United States
The Turnbull government hasn’t been silent about their desire to shift Australia to be more innovative, mainly by endorsing start-ups and creating a tech community. Wyatt Roy, Assistant Minister for Innovation, noted earlier this month how Israel transformed itself into a digital economy with more start-ups per capita than any other country. Indeed, the government hopes to do the same with Australia with the aim to position ourselves as a strong competitor in the global economy.
But why start-ups and why are they good for our economy? We’ve gone through five key positive effects that start-ups can have on the Australian market below.
1) The Future of Business
There is denying our economy is shifting to being more technologically-driven. As we mentioned in yesterday’s article, the Internet of Things (IoT), is completely changing the way we interact with each other. Moreover, in the famous words of Google, “start-ups fuel economic growth and increase innovation”. Indeed, start-ups could help Australia adapt to a digital change.
2) Supporting Local Economies
Start-ups, or those who start them, are locals and they generally hire local freelancers. They often become involved in communities and partake in industry events, as community engagement is vital for the success of their business. Thus, these combined efforts supply money, resources and vibrancy back into the local community.
3) A varied market
The fruit of startups are born out ideas that are inspired by gaps in the market. Moreover, due to the increased competition between small businesses, start-ups are required to develop their products, faster, more efficiently, and cheaper. As a result, consumers are presented with reasonably priced, quick solutions to common problems.
4) Developing Well-Rounded Individuals
Working for a start-up means having to learn to do a number of different tasks that are necessary for the development of a successful business. In essence, the scope of a start-up employee’s work is far greater than an employee working in a single department for a large company, and thus, they often gain a more varied work experience. From marketing to accounting, start-up employees often wear many hats.
5) Providing Opportunities in Tough Job Market
Start-ups often employ young individuals in a range of industries or offer an in-depth experience for interns. In an unresponsive job market, start-ups can definitely assist in job creation.
Overall, start-ups can have a huge impact on the economy and can help create a more vibrant market in Australia. If you are start-up in Australia and conducting research and development, you may eligible for Research and Development Tax Credits – contact one of our specialists today to find out if you qualify.
