Entrepreneurship in Australia
• TEA up dramtically from 2002 score of 8.7
• Women almost as likely as men to start new ventures
• Angel investing down very slightly, but investment levels remain constant overall
Australia is known for the high standard of living, modern telecommunications and transport networks, wide variety of investment opportunities, and generally well educated and trained workforce. These factors all contribute towards making Australia potentially a rewarding place in which to do business. Moreover, Australia is in a great position to access emerging Asian markets. The combination of federal and state incentives for those prepared to locate their regional headquarters there makes Australia even more appealing. However, the corporate taxation rates are quite high, deterring some business people. Furthermore, some may find the country’s Controlled Foreign Corporation legislation unjustifiably restrictive.
On the economic side, Australia is a prosperous Western-style capitalist economy, with a per capita GDP competing with the four dominant West European economies. Despite the global economic downturn in 2001, the Australian economy has maintained a 2.3% GDP growth. This is due to the fact that the domestic economy is offsetting the external slump. Moreover, business and consumer confidence remains intact. Resources are plentiful, unemployment is low, and literacy is at 100%.
• The population of Australia is 20 million
• They have a democratic government with common law system.
• The government is very supportive and actively involved in encouraging innovation and entrepreneurship.
• Australia’s TEA participation rate is 8.7 (2002)
• The proportion of participants who were motivated by opportunity rather than necessity is 77%. (2002)
• Ethnic Groups: Caucasian 92%, Asian 7%, aboriginal and other 1%
• In 1996 97% of businesses in Australia were small businesses
• Small businesses employ 2.7 million people in Australia
• Women are less likely then men to start entrepreneurial activity
• In 2000/2001 the peak entrepreneurial activity was in the age bracket of 35-44. In 2002 it shifted to 45-54. This is against the trend of other GEM countries.
• The majority of start-up businesses are in business services and consumer oriented business. (business services: providing services to businesses/consumer services: providing services to consumers)
• Australian and New Zealand Venture Capital Firms during calendar year 2001 spent $AUS1.65 billion.
Australian Venture Capital Association
Private Equity Media – VC Publisher
Australia’s Venture Capital Directory
Angel Investment Network
Australia Investment Incentives
Venture Capital Centre